Skip to content

    S C I

    SCI
    Services·11 May 2026
    Management Summary

    SCI delivered a momentous performance in FY26, with consolidated net profit surging 60.3% YoY to INR1,353 crores and operating revenue growing to INR5,778 crores. The company maintained a strong balance sheet and declared a 75% dividend. Despite global market volatility and vessels stuck in the Strait of Hormuz, SCI strengthened its fleet with new VLGCs and is pursuing strategic JVs for future growth, targeting a 10-12% IRR on new acquisitions.

    Highlights

    5

    • Consolidated net profit of INR1,353 crores for FY26, a 60.3% increase from INR844 crores in FY25.

    • Operating revenue grew to INR5,778 crores in FY26 from INR5,592 crores in FY25, a 3.3% YoY growth.

    • EBITDA for FY26 was INR2,633 crores, demonstrating strong operational performance.

    • Maintained a strong balance sheet with a net worth of INR8,489 crores and cash/liquid investments of INR2,676 crores.

    • Declared a total dividend of 75% (INR7.5 per share), reflecting commitment to shareholder value.

    Concerns

    3

    • Three crude carriers and one LNG vessel (JV) are still stuck in the Strait of Hormuz, impacting Q4 revenue recognition and full potential realization.

    • Liner segment revenue declined to INR784 crores in FY26 from INR1,036 crores in FY25, with profit falling to INR75 crores from INR166 crores, primarily due to moderation in freight rates and lower cargo volume.

    • The tanker market experienced very high volatility and disruption due to the conflict in the Middle East Gulf, leading to uncertainty and potential for abnormal asset prices for new acquisitions.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Net Profit₹1,353 Cr+60.3%YoY
    2. 02Standalone Net Profit₹1,326 Cr+63%YoY
    3. 03Operating Revenue₹5,778 Cr+3.3%YoY
    4. 04EBITDA₹2,633 Cr
    5. 05Consolidated PBT₹1,423 Cr+67%YoY

    Segment breakdown

    • Tanker Segment₹3,942 Cr71.5%
    • Bulk Carrier Segment₹789 Cr14.3%
    • Liner Segment₹784 Cr14.2%
    Donut· Share of Revenue

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Dividend

    ₹7.5/share (final)

    M&A

    Bharat Container Shipping Line

    joint venture · announced

    M&A

    JV with Oil PSUs and Sagarmala Financial Corporation Limited

    joint venture · announced

    Guidance & targets

    5
    CategoryTargetPriority
    Vessel Acquisition
    IRR for vessel acquisitions
    10-12%
    		High
    Fleet Expansion
    Total vessels to be acquired
    216 vessels
    		Medium
    Fleet Expansion
    Investment for fleet expansion
    INR1 lakh crores
    		Medium
    JV Market Share
    Freight component capture by JV with OMCs
    25-30%
    		Medium
    JV Fleet
    Vessels identified for Bharat Container Shipping Line
    51 vessels
    		High

    Resolution of Strait of Hormuz conflict and vessel movement

    next quarter
    CurrentFour SCI vessels (3 crude, 1 LNG JV) still stuck
    TargetFree movement of all vessels, full market access

    Why it matters

    Resolution will unlock full earning potential for affected vessels and reduce operational risks.

    See, the vessels which are stuck inside the Strait of Hormuz, SCI vessels and any other shipowners, they are basically at this stage whatever the market, they are not able to tap that market. But the vessels which are outside the Strait of Hormuz, whatever few fixtures are there, few cargoes are there, definitely they will have a lot of basically potential in terms of the freight. But let's see, this is a very dynamic, very volatile situation. And we will have a clarity because every day some negotiations are happening between Iran, between USA and other parties also. So we have to wait and watch and then see how this situation, how fast this war settles, and then we can evaluate overall how good and bad the impact will be there.

    How to verify

    risks_and_concerns[risk='Strait of Hormuz conflict and vessel movement']

    Risks & concerns

    4
    RiskSeverity

    Strait of Hormuz conflict and vessel movement

    Conflict in the Middle East Gulf led to high volatility, disrupted transits, and vessels getting stuck, impacting Q4 earnings and overall market dynamics. Four SCI vessels are currently stuck. — Management acknowledged

    high

    Abnormal asset prices for new vessel acquisitions

    The current tanker market is 'very, very abnormal,' which means the price of assets for new acquisitions would also be high, potentially impacting future returns if purchased at peak cycle. — Management acknowledged

    medium

    Shipping cycle volatility

    The current war and uncertainty create a 'very dynamic, very volatile situation' for the shipping market, though management believes it is a temporary phase. — Management acknowledged

    medium

    Delay in JV formation

    The formation of the JV with OMCs, initially expected around December 2025, is still under Ministry consideration due to established procedures, causing delays in a key strategic initiative. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “The difference what we could have got if this Strait of Hormuz was operational, then this number would have been much, much better than this. And what we have explained is the overall scenario for the year '25,'26. Towards Quarter 4, the numbers have gone up and the market was firm. And after the break of war, definitely those numbers, March was as good as idle for the most of the shipping which were operating in the Strait of Hormuz.”

    Analyst questioned why Q4 tanker segment growth was low despite high rates, revealing that vessels stuck in the Strait of Hormuz significantly impacted potential earnings and revenue recognition for the quarter.

    asked by Digant Haria

    3 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    The Shipping Corporation of India Limited reported a momentous performance in FY26, with standalone net profit reaching INR1,326 crores and consolidated net profit at INR1,353 crores, marking a significant increase from INR814 crores and INR844 crores respectively in FY25. Operating revenue for FY26 stood at INR5,778 crores, up from INR5,592 crores in the previous fiscal year. EBITDA for FY26 was INR2,633 crores, and the company declared a total dividend of 75% (INR7.5 per share), demonstrating robust financial health and commitment to shareholders.

    02

    Fleet Expansion and Modernization

    SCI's owned fleet now comprises 58 vessels, with an additional 40 vessels managed for government organizations. In FY26, the company inducted two very large gas carriers (VLGCs), Sahyadri and Shivalik, each with a capacity of 82,000 cubic meters, significantly strengthening its LNG transport capabilities. Furthermore, SCI placed an order with Mazagon Dock Limited (MDL) for a 3,000 DWT methanol dual-fuel diesel-electric PSV, a pilot project under the National Green Hydrogen Mission, aligning with green shipping initiatives.

    03

    Strategic Joint Ventures for Future Growth

    SCI is actively pursuing strategic joint ventures to enhance India's shipping capacity and energy security. An MOU was signed in September 2025 with Oil PSUs and Sagarmala Financial Corporation Limited, and another in February 2026 with CONCOR and major ports to form the Bharat Container Shipping Line. This initiative aims to address the negligible Indian container fleet, with 51 vessels identified for initial demand aggregation. The JV with OMCs is expected to capture 25-30% of the freight component initially, with potential for further expansion.

    04

    Segmental Performance Overview

    The tanker segment was a key growth driver, with revenue increasing to INR3,942 crores in FY26 from INR3,609 crores in FY25, and profitability surging by 75% to INR1,190 crores. The bulk carrier segment also saw an 11% improvement in revenue, reaching INR789 crores, and reported a reduction in losses. However, the liner segment experienced a decline in revenue to INR784 crores from INR1,036 crores, and profit fell to INR75 crores from INR166 crores, primarily due to moderated freight rates and lower cargo volumes.

    05

    Impact of Geopolitical Events and Market Volatility

    The Q4 FY26 period was marked by high volatility in the tanker market due to the conflict in the Middle East Gulf and disruptions in the Strait of Hormuz. This led to several SCI vessels getting stuck, preventing them from fully capitalizing on elevated spot rates. Management noted that while rates were high, cargo availability was limited, and the abnormal market conditions could also lead to high asset prices for new acquisitions. SCI is rerouting vessels via the Cape of Good Hope to ensure reliability amidst Red Sea disruptions.

    06

    Capital Structure and Shareholder Returns

    SCI maintains a strong balance sheet with a net worth of INR8,489 crores, cash and liquid investments of INR2,676 crores, and long-term debt of INR2,409 crores. This results in a healthy debt-equity ratio of 0.29 and a DSCR of 4.61, providing significant financial flexibility. The company's board recommended a dividend of 75% (INR7.5 per share) for FY26, and the company achieved a return on equity of over 16% for the year.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.