💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 14.98% YoY to INR 96.86 Cr in FY25. The Offshore Service Vessels segment revenue grew 67.6% YoY to INR 61.04 Cr, while Port Services and Oil Spill Response (OSR) segments moderated due to contract cycles.

Geographic Revenue Split

100% of revenue is derived from operations in India, primarily serving major port trusts and offshore energy corridors like Mumbai Port, JNPA, and ONGC assets.

Profitability Margins

Net Profit Ratio improved from 10.86% in FY24 to 12.13% in FY25. For H1 FY26, Profit Before Tax (PBT) was INR 5.51 Cr, down from INR 6.68 Cr in H1 FY25 due to higher interest and depreciation costs.

EBITDA Margin

The company targets a PBILDT margin above 30% as a positive rating factor. Core profitability is supported by increased charter rates under renewed medium-to-long term contracts.

Capital Expenditure

Property, Plant & Equipment increased to INR 216.91 Cr as of September 2025 from INR 202.48 Cr in March 2025, reflecting ongoing fleet expansion and vessel additions.

Credit Rating & Borrowing

CARE reaffirmed 'CARE BBB-; Stable' for long-term bank facilities of INR 85.42 Cr and 'CARE A3' for short-term facilities of INR 16.58 Cr in October 2025. Interest paid in H1 FY26 was INR 2.87 Cr, up 58% YoY.

⚙️ Operational Drivers

Raw Materials

Marine fuel (Marine Gas Oil) is the primary operational cost. Specialized OSR equipment is sourced from technology partners.

Import Sources

Oil Spill Response (OSR) technology and equipment are imported from Denmark.

Key Suppliers

DESMI RoClean A/S (Denmark) for OSR equipment; Unity Small Finance Bank, IDFC First Bank, and Ambit Finance for working capital financing.

Capacity Expansion

The company is investing in new tonnages via capital purchase to replace older vessels like the divested Aditri (which was 20% of revenue) and to meet ONGC's fuel efficiency criteria.

Raw Material Costs

Fuel costs are increasingly managed through pass-through clauses in contracts with premier customers like ONGC, giving an edge to fuel-efficient vessels.

Manufacturing Efficiency

Vessel utilization is the primary efficiency metric, optimized through medium-to-long term contracts providing stable revenue visibility.

Logistics & Distribution

Not applicable for shipping services.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth will be achieved by increasing scale above INR 120 Cr through contract renewals at higher charter rates, operationalizing a new JV for offshore logistics infrastructure, and investing in new fuel-efficient tonnages.

Products & Services

Offshore Service Vessels (OSV), Oil Spill Response (OSR) services, and Port Craft operations (Tugs, Pilot boats).

Brand Portfolio

Sadhav.

New Products/Services

Development of electric boats for port operations in partnership with a top Indian e-mobility company.

Market Expansion

Expansion of regional Oil Spill Response Centres to cover both Major and Minor ports across India.

Market Share & Ranking

First mover in port-based Oil Spill Response (OSR) in India with presence at all Major Ports.

Strategic Alliances

Strategic partnership with DESMI RoClean (Denmark) for OSR; JV for offshore logistics infrastructure with balanced governance.

🌍 External Factors

Industry Trends

The industry is seeing a trend of ports outsourcing non-core activities and a shift toward fuel-efficient and electric-powered marine assets.

Competitive Landscape

Operates in a competitive, cyclical, and highly regulated offshore shipping sector.

Competitive Moat

Durable moat through first-mover advantage in OSR services and established long-term relationships with PSU clients and Major Port Trusts.

Macro Economic Sensitivity

Highly sensitive to oil and gas exploration budgets and global demand for offshore logistics.

Consumer Behavior

Not applicable (B2B services).

Geopolitical Risks

Vulnerability to global oil price fluctuations and geopolitical events affecting offshore drilling activities.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Coast Guard (nodal authority for OSR) and Port Trust standards; no material non-compliance reported.

Environmental Compliance

OSR services are critical for client compliance with NOS-DCP safety regulations mandated by the Coast Guard.

Taxation Policy Impact

Standard corporate tax rates apply; PBT for H1 FY26 was INR 5.51 Cr.

Legal Contingencies

No investor complaints were recorded or received during H1 FY26; statutory auditors issued an unmodified opinion on financial results.

⚠️ Risk Analysis

Key Uncertainties

Vessel idleness between contracts and potential non-renewal of high-value contracts with ONGC.

Geographic Concentration Risk

100% revenue concentration in the Indian market, specifically at major ports and offshore oil fields.

Third Party Dependencies

Critical dependency on ONGC for 49% of revenue and DESMI RoClean for OSR technology.

Technology Obsolescence Risk

Risk of older vessels becoming uncompetitive due to new fuel efficiency clauses introduced by major clients.

Credit & Counterparty Risk

Low counterparty risk as primary clients are PSUs (ONGC) and Major Port Trusts.