Knowledge Marine & Engineering Works Limited (KMEW) reported exceptional financial performance for FY26 with standalone revenue growing 27% YoY to ₹256.28 crore and profit after tax more than doubling to ₹79.11 crore (₹779.45 lakhs). The strong results were driven by robust dredging operations, strategic expansion into shipbuilding, and significant tax benefits from adopting the Tonnage Tax Scheme, which reduced tax expense by over 90% for eligible income.
Operationally, the company secured ₹1,075 crore in new orders during FY26, including two landmark 15-year Green Tug contracts worth ₹690 crore from VOC Port Authority and Visakhapatnam Port Authority. This expanded the total order book to ₹1,395.43 crore as of March 31, 2026. The company successfully executed complex rock dredging projects at JNPA and expanded its fleet to 50+ vessels, including India's largest backhoe dredger.
Strategically, KMEW raised ₹284.81 crore through a preferential issue at ₹1,900 per share/warrant, acquired a 51% stake in Knowledge Shipyard Private Limited, and increased holdings in subsidiaries Indian Ports Dredging Pvt Ltd and Knowledge Infra Ports Pvt Ltd to 99.99%. The company initiated a merger process for these subsidiaries with NCLT application filed in April 2026. Significant expansion included development of a 15-acre shipyard at Saphale, Palghar near the upcoming Vadhavan Port, with Phase I targeted operational by end of FY27.
Financially, total borrowings increased to ₹222.06 crore (₹22,205.73 lakhs) to fund vessel acquisitions and expansion, while maintaining a healthy debt-equity ratio of 0.41. The company holds CARE BBB+/A2 credit ratings with stable outlook. Capital work-in-progress stood at ₹99.16 crore, primarily for green tugs and new vessels. Segment-wise, dredging services contributed ₹184.31 crore revenue, shipbuilding ₹53.26 crore, and charter services ₹18.71 crore.
Corporate governance remained robust with 13 board meetings and full committee functionality. The company spent ₹99.32 lakh on CSR initiatives and maintained a workforce of 550+ employees. The 11th AGM is scheduled for September 29, 2026, to adopt financial statements and appoint directors, with MSKA & Associates LLP proposed as new statutory auditors.