Knowledge Marine & Engineering Works Limited – Investor Presentation Summary

Key Operational Highlights

  • Executed highly complex and technically demanding rock dredging project at Jawaharlal Nehru Port Authority (JNPA).
  • Acquired River Pearl 48, the company's largest trailing suction hopper dredger, delivering a near fourfold increase in hopper capacity.
  • Vessel length: 118.2 metres, Breadth: 19.2 metres, Depth: 8.6 metres.
  • Potential annual dredging capacity: 8–10 Million m³, Maximum dredging depth: 36 Metres.
  • Key drivers: Strategic expansion into larger, higher-value dredging contracts and leading the Green Tug revolution.

Segment-wise Performance

  • Dredging: Successfully entered the maintenance dredging market dominated by international players.
  • Charter & Hire: Secured third Green Tug contract, consolidating leadership under the Green Tug Transition Programme.
  • Shipbuilding: Subsidiary, Knowledge Shipyard Limited, secured a ₹62 crore contract for 10 electric ferries from IWAI.

Financial Highlights

Revenue: ₹18,621.97 lakhs

EBITDA: ₹10,170.81 lakhs

PAT: ₹8,427.99 lakhs

EPS: ₹6.54

Margins: EBITDA Margin: 55%, PAT Margin: 45%

YoY comparison: Revenue grew 89% from H1 FY26 (₹9,864.80 lakhs). EBITDA grew 155% from H1 FY26 (₹3,991.46 lakhs). PAT grew 267% from H1 FY26 (₹2,298.19 lakhs).

Drivers of financial performance: Higher revenue growth from expanded operations and new contract wins.

Key Risks: Not explicitly disclosed in the presentation.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not directly specified. Total Borrowings: ₹27,179.64 lakhs (Non-current: ₹19,438.55 lakhs, Current: ₹7,741.09 lakhs) against Total Equity of ₹82,901.65 lakhs.

Reserves: Part of 'Other Equity' at ₹79,626.56 lakhs.

Current Assets: ₹45,343.97 lakhs

Current Liabilities: ₹10,979.91 lakhs

Financial Health Insights: Strong cash and bank balance of ₹30,552.27 lakhs (Cash & cash equivalents: ₹11,861.91 lakhs + Other bank balance: ₹18,690.36 lakhs).

Capex & Cash Flow Health

Capital Expenditure: Significant Capital Work-in-Progress of ₹34,442.45 lakhs indicates ongoing capex.

Free Cash Flow: Not explicitly stated.

Operating Cash Flow: Net Cash from Operating Activities: ₹4,411.91 lakhs.

Net Debt Movement: Not explicitly disclosed.

Investment Rationale: Focus on capacity expansion (shipyard), technology upgrades (Green Tugs, electric ferries), and fleet expansion.

Strategic & R&D Initiatives

Investments in Innovation: Building green tugs and electric ferries under the Harit Nauka initiative. Expanding shipbuilding capacity.

Expected impact on growth: Phase 1 of shipyard to be completed by February 2027, unlocking capacity for 14 vessels annually. Aim to lead India's green tug segment with a portfolio of 5 tugs.

Strategic Rationale: Expanding into high-growth markets (maintenance dredging, green vessels), reducing operational costs through standardization, and exploring international export opportunities.

Industry Trends & Business Environment

Macro/Industry Trends: India's maritime sector is entering a multi-decade expansion cycle. Major ports handled a record 915.17 million tonnes of cargo in FY2025-26. Policy push to increase share of inland waterways and coastal shipping from 6% to 12% by 2047. Government initiatives like Maritime Amrit Kaal Vision 2047 (₹80 lakh crore targeted investment) and Sagarmala (845 projects worth ₹6.06 lakh crore).

Impact on Company: Creating a larger addressable market for dredging, chartering, and shipbuilding services. The Green Tug Transition Programme identifies a requirement of ~98 green tugs across Indian ports.

Management Commentary & Growth Outlook

Strategic Outlook: "Building the fleet, the yard and the balance sheet to capture [India's multi-decade maritime expansion]."

FY Guidance: Not explicitly provided.

Market Share Targets: Aim to emerge as "India's largest green tug contractor".

Risks and Opportunities: Not explicitly highlighted beyond the safe harbor statement.

ESG Updates

The company is at the forefront of sustainable maritime initiatives through its Green Tug contracts and the construction of 10 Hybrid Electric Passenger Ferries under the Harit Nauka initiative, which aims for 100% green vessels in Indian waters by 2047.