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    Knowledge Marine & Engineering Works Q1 FY27 earnings call

    KMEW
    Services·26 Aug 2026
    Management Summary

    Knowledge Marine & Engineering Works Limited reported a very strong Q1 FY27, with significant year-on-year growth across all key financial metrics, driven primarily by its dredging segment. The company highlighted its robust order book and substantial bid pipeline, alongside strategic capital expenditure plans to expand its fleet and shipbuilding capabilities. Management expressed confidence in achieving a turnover of INR1,000 crores by FY29, supported by diversified business verticals and high operating margins.

    Highlights

    5

    • Revenue from operations grew 138% YoY to INR115.41 crores, driven by strong dredging performance.

    • EBITDA increased 258% YoY to INR73.41 crores, with an impressive EBITDA margin of approximately 64%.

    • Profit after tax surged 466% YoY to INR62.75 crores, reflecting a PAT margin of approximately 54%.

    • Current order book stands at over INR1,300 crores, with an additional bid pipeline of INR3,500+ crores.

    • Secured a significant shipbuilding contract from IWAI for 10 hybrid electric passenger ferries valued at INR62.40 crores.

    Key financials

    Single quarter

    05 metrics
    1. 01Revenue from Operations₹115.41 Cr+138%YoY
    2. 02EBITDA₹73.41 Cr+2.6%YoY
    3. 03EBITDA Margin64%
    4. 04Profit After Tax₹62.75 Cr+4.7%YoY
    5. 05PAT Margin54%

    Order Book

    high confidence

    Total Value

    ₹ 1,300 crores

    as of 2026-06-30

    quantified

    Execution

    dredging and shipbuilding business will be translated over a period of 2 to maximum 3 years, whereas for the chartering business, the contracts are long-term, 10, 15 years contract.

    Composition

    Mix3 segments
    • Dredging₹ 240 crores18.0%
    • Charter & Hire₹ 850 crores63.9%
    • Shipbuilding₹ 240 crores18.0%

    Share of order book by segment (derived from disclosed amounts)

    Pipeline

    other

    Current bid pipeline across dredging, charter & hire, and shipbuilding.

    "The company maintains a diversified order book providing strong visibility and confidence in its growth trajectory, while remaining selective in bidding for new projects."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹1,000 crores

    Liquidity

    Liquidity disclosed

    The company strengthened its capital base through a INR150 crore preferential issue and a INR100 crore block deal, providing greater flexibility for growth and enabling it to be fully capitalized to achieve a turnover of INR1,000 crores.

    Guidance & targets

    24
    CategoryTargetPriority
    Revenue Growth
    FY27 Revenue Growth
    northwards of 60%
    		High
    Dredging Execution
    Dredging Order Book Execution
    INR200 crores
    		High
    Dredging Revenue
    Dredging Revenue
    higher than last year
    		High
    EBITDA Margin
    Operational EBITDA Margin
    35% to 40%
    		High
    PAT Margin
    PAT Margin
    25% to 30%
    		High
    Revenue
    Total Turnover
    INR1,000 crores
    		High
    Dredging Market
    Maintenance Dredging Market Addressable
    INR100 crores to INR120 crores
    		High
    Dredging Market
    Maintenance Dredging Market Addressable (Next Year)
    more than INR250 crores
    		High
    Dredging Market
    Capital Dredging Business Addition
    INR70 crores
    		High
    Dredging Market
    Capital Dredging Business Addition (Next Year)
    INR150 crores
    		High
    Bid Pipeline
    Bid Pipeline Hit Rate
    in excess of 50%
    		High
    Revenue Mix
    Current Revenue Mix (Dredging)
    80%
    		High
    Revenue Mix
    Current Revenue Mix (Chartering)
    3% to 5%
    		High
    Revenue Mix
    Current Revenue Mix (Shipbuilding)
    9%
    		High
    Revenue Mix
    Future Revenue Mix (Dredging)
    45% to 50%
    		High
    Revenue Mix
    Future Revenue Mix (Shipbuilding)
    40% to 45%
    		High
    Revenue Mix
    Future Revenue Mix (Chartering)
    5%
    		High
    Operational Margins
    Operational Margins across segments
    35% to 40%
    		High
    Shipbuilding Margins
    Shipbuilding Margins (Pre-subsidy)
    15% to 20%
    		High
    Shipbuilding Margins
    Shipbuilding Margins (Post-subsidy)
    beyond 35%
    		High
    Shipyard Capacity
    Shipyard Delivery Capacity (Phase I)
    14 vessels per annum
    		High
    Shipyard Capacity
    Shipyard Delivery Capacity (All Phases)
    18 vessels per annum
    		High
    Shipyard Operations
    Phase I Operational
    Yes
    		High
    Green Tug Business
    EBITDA Margin (Green Tug)
    75%
    		High

    What to watch in Q2 FY27

    5

    FY27 Revenue Growth

    FY27
    Current138% YoY in Q1 FY27
    TargetNorthwards of 60% YoY

    Why it matters

    To verify if the company can sustain its strong growth momentum and achieve its revised higher guidance for the full fiscal year.

    the guidance initially given was 30% to 40% year-on-year. We believe the order book is streaming up well, and there is a potential in northwards of 60% for the current year now.

    Risks & concerns

    1
    RiskSeverity

    Impact of Port Privatization on Dredging Business

    Analyst questioned if privatization of ports and new players would diminish KMEW's dredging opportunities. Management stated dredging is perpetual, they work with government entities, and DCI (the main competitor) has older equipment. — Analyst downplayed

    low

    Q&A highlights

    8

    “the guidance initially given was 30% to 40% year-on-year. We believe the order book is streaming up well, and there is a potential in northwards of 60% for the current year now.”

    Analyst sought clarity on the revised FY27 revenue growth target and the impact of a previous quarter's turnover shift, indicating a significant upward revision in growth expectations.

    asked by Sandeep Agarwal

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Highlights

    Knowledge Marine & Engineering Works Limited commenced FY27 with robust financial performance. Revenue from operations soared by 138% year-on-year to INR115.41 crores. EBITDA witnessed a 258% year-on-year increase, reaching INR73.41 crores, with an impressive margin of approximately 64%. Profit after tax (PAT) demonstrated exceptional growth of 466% year-on-year, totaling INR62.75 crores, and achieving a PAT margin of approximately 54%.

    02

    Dredging Segment Driving Growth

    The dredging segment was the primary contributor to the strong Q1 FY27 revenue and profitability. This was largely due to the successful execution of two key projects: the capital rock dredging project at JNPA and the maintenance dredging project at Pondicherry port. The technical complexity of the JNPA assignment, coupled with efficient asset deployment, significantly boosted both revenue and profitability for the quarter.

    03

    Strategic Expansion into Shipbuilding

    Shipbuilding is identified as a key growth pillar, with the new Saphale shipyard progressing from Phase 1 to Phase 3, aiming to build approximately 18 vessels per annum. The company secured a significant contract from the Inland Waterways Authority of India (IWAI) for 10 hybrid electric passenger ferries, valued at INR62.40 crores, to be constructed at the new shipyard. This initiative aligns with the government's Harit Nauka mission for cleaner inland waterway transportation.

    04

    Robust Order Book and Bid Pipeline

    The company boasts a detailed order book exceeding INR1,300 crores, comprising INR240 crores in dredging, INR850 crores in charter and hire, and INR240 crores in shipbuilding. This excludes an intercompany order book of INR200 crores for Green Tugs and patrol boats. Furthermore, KMEW has a substantial bid pipeline of approximately INR3,500+ crores, with INR1,200+ crores in dredging, INR1,100+ crores in charter and hire, and INR1,400+ crores in shipbuilding.

    05

    Capital Allocation for Future Growth

    KMEW is undertaking a significant capital expenditure of close to INR1,000 crores over the next 1.5 years. This investment is strategically allocated, with approximately INR250 crores for green tugs and vessels, INR450 crores for the dredging business, and the remainder for the shipyard and shipbuilding infrastructure. The company also strengthened its capital base with a INR150 crore preferential issue and a INR100 crore block deal, ensuring sufficient capital for its growth trajectory.

    06

    Future Outlook and Margin Expectations

    Management revised its FY27 revenue growth guidance to 'northwards of 60%' from the initial 30-40%. They expect operational margins across all three segments (dredging, charter, shipbuilding) to remain between 35% to 40%. The company aims to achieve a total turnover of INR1,000 crores by FY29, driven by expanding dredging capacity and scaling shipbuilding operations, with a future revenue mix of 45-50% from dredging, 40-45% from shipbuilding, and 5% from chartering.

    This is an AI-generated summary of a publicly available earnings call transcript.