Detailed Narrative
Q2 FY26 Financial Performance Overview
Shipping Corporation of India reported a standalone net profit of INR 176 crores and consolidated net profit of INR 189 crores for Q2 FY26. This marked a sequential decline from Q1 FY26's standalone profit of INR 343 crores and consolidated profit of INR 354 crores, primarily due to a non-recurring📎 interest income of INR 79 crores from an income tax refund in the previous quarter. Operating revenue for Q2 stood at INR 1,339 crores, a slight increase from INR 1,315 crores in Q1, with EBITDA reaching INR 504 crores.
Balance Sheet Strength and Shareholder Returns
The company maintains a robust financial position, boasting a net worth of INR 7,963 crores and substantial cash and liquid investments totaling INR 1,875 crores. Long-term debt is recorded at INR 2,526 crores, translating to a healthy debt-equity ratio of 0.32 and a strong DSCR of 4.24. Demonstrating its commitment to shareholders, the Board declared an interim dividend of 30% for the quarter.
Fleet Expansion and LPG Segment Growth
SCI's owned fleet has grown to 58 vessels, complemented by an additional 40 vessels managed for government organizations. A significant development this quarter was the induction of two very large gas carriers (VLGCs), Sahyadri and Shivalik, each with a capacity of 82,000 cubic meters. These vessels, built by Hyundai Heavy Industries, are strategically deployed on the Persian Gulf-India route, bolstering India's LPG transportation capacity and supporting energy demand.
Strategic Joint Venture for National Energy Security
A key strategic initiative announced was the signing of an MoU with Bharat Petroleum, Hindustan Petroleum, and Indian Oil Corporation to form a joint venture. This collaboration aims to jointly acquire, own, and operate 59 vessels for transporting petroleum, petrochemical, and other hydrocarbon cargoes. SCI will be the leading shareholder with a 50% stake, alongside 40% from the oil PSUs and 10% from the Maritime Development Fund, targeting a 2x-3x increase in revenue and a 50% operating margin for the JV.
Segmental Performance and Market Dynamics
The liner segment reported a profit of INR 11 crores in Q2, despite being impacted by INR 30 crores in ECL provisions, which management expects to reverse. The tanker segment, comprising 31 vessels, benefited from a significant increase in VLCC World Scale rates, which more than doubled from WS 48.76 to over WS 100. The bulk carrier segment returned to profitability with INR 2 crores in Q2, reversing a Q1 loss of INR 48 crores, driven by an increase in the Baltic Dry Index (BDI) from 1,500 to 1,800.
Government Support and Future Outlook
Management emphasized strong government commitment to the maritime sector, citing parliamentary clearances for five maritime bills and cabinet approval for INR 70,000 crores in schemes. The JV initiative aligns with the 'Atmanirbhar Bharat' vision, aiming to reduce dependency on foreign shipping and enhance national energy security. SCI also plans to independently expand its owned fleet by 10-12 vessels in FY26-27, alongside the JV's growth.