KMEW - Knowledge Marine
📢 Recent Corporate Announcements
Knowledge Marine & Engineering Works (KMEW) reported a robust Q3 FY26 with revenue of ₹90 crores, marking a 79% QoQ and 56% YoY increase. The company maintained a high EBITDA margin of 43% and a PAT margin of 34%, driven by scaling efficiencies and improved realizations. KMEW has transitioned to the Tonnage Tax Scheme, which is expected to lower the effective tax rate to less than 1% of turnover. With an order book of ₹1,500 crores and a bid pipeline exceeding ₹3,000 crores, the growth outlook remains strong.
- Revenue reached ₹90 crores in Q3 FY26 with a PAT of ₹32.89 crores and 43% EBITDA margin.
- Total order book stands at ₹1,500 crores, including ₹700 crores from 15-year green tug contracts.
- Transitioned to Tonnage Tax Scheme, significantly reducing future tax liability to less than 1% of turnover.
- Successfully raised ₹285 crores via preferential issue to fund fleet expansion and working capital.
- Current fleet of 45 crafts is operating at 100% utilization with no idle equipment.
Knowledge Marine & Engineering Works Limited (KMEW) has released the audio recording of its earnings call for the quarter and nine months ended December 31, 2025. This disclosure is a standard regulatory requirement under SEBI (LODR) Regulations, 2015, following the announcement of financial results. The recording provides investors with direct access to management's commentary on the company's operational performance and strategic outlook. It ensures transparency regarding the discussions held with institutional investors and analysts during the meet.
- Audio recording for Q3 and 9M FY2025-26 earnings call is now available for public review.
- The call discussed financial performance for the period ending December 31, 2025.
- Recording is hosted on the company's official website under the investor information section.
- Compliance filing made under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirement).
Knowledge Marine & Engineering Works (KMEW) is seeking shareholder approval to significantly increase its borrowing limit from ₹500 Crores to ₹1,200 Crores. This 140% increase in debt capacity is intended to fund the company's existing and proposed business expansion and growth plans. The approval is being sought via a postal ballot through remote e-voting, which concludes on March 15, 2026. This move signals management's readiness for large-scale capital expenditure or project acquisitions in the marine sector.
- Proposal to increase borrowing limits from ₹500 Crores to ₹1,200 Crores.
- Funds targeted for existing and future business expansion and growth initiatives.
- Resolution includes authority to pledge or mortgage company assets to secure the increased debt.
- Remote e-voting period scheduled from February 14, 2026, to March 15, 2026.
Knowledge Marine & Engineering Works (KMEW) reported a robust performance for Q3 FY26, with consolidated revenue growing 56% YoY to ₹90.01 crore. Net profit for the quarter more than doubled to ₹32.89 crore compared to ₹15.62 crore in the same period last year. A major strategic highlight is the board's proposal to increase borrowing limits from ₹500 crore to ₹1,200 crore, signaling aggressive future expansion. The newly integrated Ship Building and Repairing segment contributed ₹26.58 crore to the top line, showcasing successful diversification.
- Consolidated Revenue from operations rose 56% YoY to ₹9,001.47 lakhs in Q3 FY26.
- Net Profit (PAT) jumped 110.5% YoY to ₹3,289.40 lakhs from ₹1,562.35 lakhs.
- Board approved a significant hike in borrowing limits from ₹500 crore to ₹1,200 crore via postal ballot.
- The Ship Building and Repairing segment contributed ₹2,658.10 lakhs to revenue following the Kamal Marine acquisition.
- Basic Earnings Per Share (EPS) increased to ₹13.35 for the quarter from ₹7.38 in the previous year's corresponding quarter.
Knowledge Marine & Engineering Works (KMEW) reported a stellar performance for Q3 FY26, with consolidated revenue growing 56% YoY to ₹90.01 crore. Net profit for the quarter nearly doubled to ₹30.43 crore, up from ₹15.95 crore in the previous year's corresponding quarter. A significant strategic move was the board's approval to more than double the company's borrowing limits from ₹500 crore to ₹1,200 crore, indicating major expansion plans. The dredging segment remains the primary revenue driver, while the shipbuilding and repair segment contributed ₹26.58 crore to the topline.
- Consolidated Revenue from operations increased 56.2% YoY to ₹90.01 crore in Q3 FY26.
- Net Profit after minority interest surged 90.8% YoY to ₹30.43 crore.
- Board approved a proposal to increase borrowing limits from ₹500 crore to ₹1,200 crore via postal ballot.
- Dredging and Ancillary Services revenue reached ₹63.43 crore, remaining the core business segment.
- Basic Earnings Per Share (EPS) for the quarter rose to ₹13.35 from ₹7.38 in Q3 FY25.
Knowledge Marine & Engineering Works Limited (KMEW) has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms the status of dematerialization requests for the quarter ended December 31, 2025. Notably, the registrar confirmed that zero demat requests were received for processing during this period. This is a standard procedural filing required by Indian stock exchanges to ensure shareholding records are accurately maintained.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar MUFG Intime India Private Limited confirmed that 0 demat requests were received during the quarter.
- The filing ensures adherence to SEBI (Depositories and Participants) Regulations, 2018.
- Confirms that the name of depositories is substituted in records as registered owners within prescribed timelines where applicable.
Saurabh Daswani, the Promoter and Managing Director of Knowledge Marine & Engineering Works Limited, sold 1,800 equity shares on December 31, 2025. The sale was conducted in the open market for a total consideration of approximately Rs 34.09 Lakhs. Despite the sale, his stake remains significant at 10.52%, with a post-transaction holding of 25,70,670 shares. This minor divestment is unlikely to impact the company's strategic direction or market sentiment.
- Promoter & MD Saurabh Daswani offloaded 1,800 shares in the open market
- The transaction value is approximately Rs 34.09 Lakhs
- Post-transaction, the MD retains a 10.52% stake with 25,70,670 shares
- The sale represents a negligible portion of the promoter's total equity holding
Knowledge Marine & Engineering Works Limited (KMEW) has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is for the purpose of considering the un-audited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. The company expects to approve these results on or before February 14, 2026. The trading restriction applies to all directors, promoters, and designated persons until 48 hours after the results are declared.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to financial results for the quarter and nine months ended December 31, 2025
- Board approval for results expected on or before February 14, 2026
- Window to remain closed until 48 hours after the official result declaration
Knowledge Marine & Engineering Works Limited (KMEW) has received approval to shift from traditional corporate tax to the Tonnage Tax Scheme for a 10-year period starting AY 2026-27. This transition will decouple tax liability from actual profits, basing it instead on the net tonnage of vessels, which is expected to significantly lower tax outflows. Under the scheme, the company must transfer at least 20% of book profits to a Tonnage Tax Reserve for fleet expansion within eight years. This move is expected to enhance net profitability and provide a predictable cost structure for competitive project bidding.
- Approval granted under Section 115VP (3) of the Income Tax Act for a 10-year duration starting AY 2026-27.
- Taxation will be based on fixed daily tonnage rates (e.g., ₹70 per 100 tons for vessels up to 1,000 tons) rather than actual profits.
- Mandatory 20% book profit transfer to a Tonnage Tax Reserve Account for acquiring new vessels within 8 years.
- The shift follows the Union Budget 2025 extension of the Tonnage Tax Regime to include inland vessels.
- Expected to improve cash flows and financial flexibility for aggressive fleet expansion and operational growth.
Knowledge Marine & Engineering Works (KMEW) has been awarded a ₹58.39 crore contract by the Dredging Corporation of India (DCIL) for rock dredging at Jawaharlal Nehru Port. The project is technically demanding, involving the removal of 10,500 cubic meters of hard rock with compressive strengths over 170 megapascals using underwater controlled blasting. The work must be completed within a 90-day timeframe following a 60-day mobilization period. This win reinforces KMEW's position in the specialized marine infrastructure sector and demonstrates its ability to handle mission-critical port projects.
- Awarded a ₹58.39 crore work order from Dredging Corporation of India Limited (DCIL) for rock dredging at JNPA.
- Project involves dredging approximately 10,500 cubic meters of exceptionally hard rock at depths up to 16 meters.
- Execution timeline is strictly set at 90 days from commencement, with a 60-day mobilization period.
- Technical scope includes specialized underwater controlled blasting for rock formations exceeding 170 megapascals.
- KMEW will utilize its existing fleet and acquire one additional vessel specifically for this assignment.
Knowledge Marine & Engineering Works Limited (KMEW) has announced the successful passage of a postal ballot resolution for the appointment of Mr. Hemant Kumar Sibal as a Non-Executive Director. The resolution was passed with 100% of the polled votes in favor, representing 6,155,516 shares. Promoter participation was significant, with 6,145,395 votes cast, while public participation remained relatively low at 10,121 votes. The voting process concluded on December 14, 2025, and the results were officially recorded on December 16, 2025.
- Resolution for appointment of Mr. Hemant Kumar Sibal as Non-Executive Director passed with 100% majority.
- A total of 6,155,516 votes were cast in favor, with zero votes against the resolution.
- Promoter and Promoter Group contributed 6,145,395 votes, representing a 93.75% turnout within that category.
- Public institutional and non-institutional investors cast a combined 10,121 votes, all in favor of the appointment.
Knowledge Marine & Engineering Works Limited (KMEW) has secured a work order from New Mangalore Port Authority for hiring a River Sea Vessel (RSV) type IV Security Patrol Boat. The contract is valued at ₹10,66,43,732 inclusive of GST and spans a period of five years. This is KMEW's second consecutive order from NMPA, highlighting their strong position in maritime security. KMEW now provides patrol boat services to 5 of India's 12 major ports.
- Secured a ₹10,66,43,732 work order from New Mangalore Port Authority
- Contract period is for 5 years
- Order is for hiring One No. of River Sea Vessel (RSV) type IV Security Patrol Boat
- KMEW provides patrol boat services to 5 of India's 12 major ports
Financial Performance
Revenue Growth by Segment
Total Operating Income grew 23% YoY to INR 201 Cr in FY25 from INR 164 Cr in FY24. Revenue is split between Dredging and Ancillary Services contributing 69.27% and Shipbuilding Income contributing 30.72% as of H1 FY26.
Geographic Revenue Split
Operations are spread across major Indian ports including Kolkata, Vishakapatnam, Kandla, and Vadinar, with international presence in Sittwe, Myanmar; specific percentage split per region is not disclosed.
Profitability Margins
PAT margin improved to 24.3% in FY25 from 20.2% in FY24. H1 FY26 PAT margin stood at 24.54% (INR 22.98 Cr). High margins are driven by in-house repair capabilities which reduce maintenance costs and downtime.
EBITDA Margin
PBILDT margin recovered to 39% in FY25 from 30% in FY24. H1 FY26 EBITDA margin was 38.55% (INR 36.86 Cr). This core profitability is sustained by superior fleet utilization and operational efficiency.
Capital Expenditure
Planned growth capex of INR 200 Cr to INR 300 Cr over the next three years (FY26-FY28) for the acquisition of new dredgers and port ancillary crafts to fulfill awarded contracts.
Credit Rating & Borrowing
Long-term rating assigned at CARE BBB+ (Stable) and CRISIL BBB (Positive). Short-term rating at CARE A2 and CRISIL A3+. Interest coverage ratio stood at a healthy 8x in FY25.
Operational Drivers
Raw Materials
Primary operational inputs include marine fuel (bunkers), spare parts for vessel maintenance, and specialized dredging equipment; specific percentage of total cost for each is not disclosed.
Import Sources
Not specifically disclosed, though the company operates in Myanmar and India, suggesting regional sourcing for fuel and maintenance supplies.
Capacity Expansion
Current fleet consists of 12 dredgers (3 Trailing Suction Hopper Dredgers, 9 Cutter Suction Dredgers) and 16 port ancillary crafts as of March 2025. Planned expansion includes acquiring additional vessels to support an INR 1,000 Cr order book.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but in-house refurbishment capabilities provide a competitive cost advantage over peers who outsource maintenance.
Manufacturing Efficiency
Vessel utilization is a key metric, with the company maintaining high occupancy levels for its 28-vessel fleet to drive 35-40% operating margins.
Logistics & Distribution
Not applicable as a service-based dredging and marine engineering firm.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
Growth will be achieved through vertical expansion into shipbuilding, securing long-term (15-year) green-tug operating contracts, and executing a sizeable unexecuted order book of over INR 850 Cr (4x FY25 revenue). The company is also targeting a 'billion-dollar enterprise' valuation through MoUs with Port Authorities.
Products & Services
Dredging services (capital and maintenance), owning and operating marine crafts, repairing/refitting marine infrastructure, and providing green-tug operations with electric propulsion systems.
Brand Portfolio
KMEW (Knowledge Marine & Engineering Works Limited).
New Products/Services
Launch of eco-friendly 'green-tugs' and integrated electric-propulsion systems for maritime decarbonization.
Market Expansion
Strengthening national maritime footprint through MoUs with Indian Port Authorities and expansion of export order execution.
Strategic Alliances
Consolidated subsidiaries include KMEW Offshore Pvt Ltd, Indian Ports Dredging Pvt Ltd, and Knowledge Dredging Co WLL (Myanmar).
External Factors
Industry Trends
The industry is shifting toward maritime decarbonization. KMEW is positioning itself by securing green-tug orders, moving away from traditional diesel-heavy operations to battery-operated systems.
Competitive Landscape
Faces intense competition from domestic and international dredging companies in the tender-bidding process.
Competitive Moat
Durable advantage through in-house technical know-how and refurbishment capabilities which lower the cost of entry and maintenance compared to pure-play operators. This moat is sustainable as it requires significant technical expertise and specialized infrastructure.
Macro Economic Sensitivity
Highly sensitive to maritime industry performance and government trade promotion policies.
Consumer Behavior
Shift in government preference toward 'Green Ports' and sustainable marine infrastructure is driving demand for KMEW's new electric vessel offerings.
Geopolitical Risks
Operations in Myanmar (Sittwe) expose the company to regional political instability and trade barrier risks.
Regulatory & Governance
Industry Regulations
Governed by Maritime Laws, environmental regulatory authorities, and Occupational Health & Safety (ISO 45001) standards.
Environmental Compliance
Fully complies with MARPOL regulations and ISO 14001 (Environmental Management). Commitment to maritime decarbonization through green-tug technology.
Taxation Policy Impact
Direct taxes paid in H1 FY26 amounted to INR 1.66 Cr; effective tax rate is not explicitly stated but follows standard Indian corporate tax norms.
Risk Analysis
Key Uncertainties
Project risk related to the INR 200-300 Cr capex; any delay in vessel deployment or cost overruns could impact the projected 17.5-20% ROCE.
Geographic Concentration Risk
Significant revenue concentration in Indian major ports and specific exposure to Myanmar.
Third Party Dependencies
Dependence on port authorities for timely contract awards and on lenders for the INR 200 Cr external borrowing required for capex.
Technology Obsolescence Risk
Risk of traditional diesel dredgers becoming obsolete due to new environmental norms; mitigated by investment in electric propulsion.
Credit & Counterparty Risk
Average collection period is high at ~100 days due to delays from certain customers, impacting liquidity flexibility.