SEAMEC Ltd — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

SEAMEC Ltd reported a landmark Q3 FY26 with its highest ever vessel deployment, leading to record quarterly revenue and profitability. Consolidated revenue grew 138% YoY to INR331 crores, and PAT turned positive at INR100 crores. The company is focused on growth through new vessel acquisitions and maintaining strong charter rates, despite some vessels undergoing dry dock in the near future.

Highlights

  • Consolidated Revenue for Q3 FY26 increased by 138% YoY to INR331 crores, driven by highest ever vessel deployment.

  • Consolidated EBITDA for Q3 FY26 surged by 347% YoY to INR150 crores.

  • Consolidated PAT for Q3 FY26 turned profitable at INR100 crores, compared to a loss of INR3 crores in the prior year.

  • ROCE and ROE stood at 15% and 16% respectively at the consolidated level, indicating strong financial performance.

  • The company secured a contract for the Goodman vessel, contributing over INR22 crores in revenue for the quarter.

Concerns

  • Seamec Paladin is on dry dock for 2 months in Q4 FY26, which will lead to lesser revenue and profitability for the quarter.

  • The overseas subsidiary reported a net negative impact of INR2 crores in PAT for the quarter.

Key financials

3 periods

Headline

  • ROCE
    15%
  • ROE
    16%

Q3 FY26

  • Consolidated Revenue
    ₹331 Cr
    YoY +138.8%
  • Consolidated EBITDA
    ₹150 Cr
    YoY +347%
  • Consolidated PAT
    ₹100 Cr

9M FY26

  • Consolidated Revenue
    ₹670 Cr
    YoY +41.6%
  • Consolidated EBITDA
    ₹285 Cr
    YoY +99.3%
  • Consolidated PAT
    ₹150 Cr
    YoY +217%

What they filed

Q1 FY27: revenue up 40.8%, net profit up 1.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue78 140 194 201 82 +5%303 +116%315 +62%283 +41%
EBITDA13 44 92 94 0 −100%130 +195%137 +49%117 +24%
Net profit3 2 59 80 -26 −967%101 +4950%87 +47%81 +1%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Agastya funded by a mix of internal sources plus debt; Anant funded through a mix of own funds and term loan in a 50-50 ratio. Overall INR1,000 crores investment will be decided on a case-to-case basis for funding mix.
    • Acquisition of Agastya vessel $23 Mn
    • Targeted acquisition of one or more vessels ₹1,000 Cr
    In case of Agastya, the latest acquisition for our fleet, this vessel was acquired for a cost of 23 million in a mix of internal sources plus debt. Debt which we have acquired is INR850 crores, which will be repaid over a period of 8 years in quarterly installments. So far as Anant is concerned, again, we are funding it through a mix of own funds and term loan in a 50-50 ratio. And again, this term loan will be acquired for a tenure of 5 to 8 years. (Vinay Agarwal, page 9) / So this MOU, which we have signed, here we have committed an investment of almost like INR1,000 crores over a period, over the next 2 or 2, 3-year period. This is towards our targeted acquisition of one or more vessels during the next 2, 3 years. (Naveen Mohta, page 7)
  • Debt Net ₹0 Cr
    • New borrowing Debt acquired for Agastya vessel, to be repaid over 8 years in quarterly installments. ₹850 Cr
    • Repayment Hopeful to prepay both Agastya and Anant loans within 3 to 4 years.
    today also, our net debt is 0 or minus, I would say. (Sunil Gupta, page 6) / Debt which we have acquired is INR850 crores, which will be repaid over a period of 8 years in quarterly installments. So far as Anant is concerned, again, we are funding it through a mix of own funds and term loan in a 50-50 ratio. And again, this term loan will be acquired for a tenure of 5 to 8 years. (Vinay Agarwal, page 9)
  • M&A Anant vessel Acquisition · Pending regulatory

    Expansion of capabilities and assets, contributing to growth.

    Expected to be deployed in Q1 FY27, contributing to revenue and growth.

    So we are also, we are till now in the process of acquiring the vessel. All received approval from shareholders and the Board of Directors of both the companies are in place. And we are hopeful to complete this acquisition within this financial year, and the vessel will be deployed in Q1 FY '27. (Vinay Agarwal, page 5)

Guidance & targets

Vessel Deployment

  • Anant vessel deployment Vessel Deployment · Q1 FY27 · High confidence Deployed
    And we are hopeful to complete this acquisition within this financial year, and the vessel will be deployed in Q1 FY '27.

    — Mr. Vinay Kumar Agarwal

Vessel Operations

  • Seamec Paladin return from dry dock Vessel Operations · March end · High confidence Back in operation
    And even Seamec Swordfish, currently, only Seamec Paladin is undergoing dry dock repair. So she is expected to be back by March end.

    — Mr. Naveen Mohta

Capex

  • Investment for vessel acquisition Capex · next 2 or 2, 3-year period · High confidence INR1,000 crores
    So this MOU, which we have signed, here we have committed an investment of almost like INR1,000 crores over a period, over the next 2 or 2, 3-year period. This is towards our targeted acquisition of one or more vessels during the next 2, 3 years.

    — Mr. Naveen Mohta

Growth

  • Overall company growth Growth · next year (FY27) · Medium confidence Growth
    First of all, next year will be a year of growth because we expect the Swordfish to continue working full year. This year, it was part of the year. We are also adding Agastya and Anant, as we mentioned in the previous discussion. So all these new vessels will give us more business and will definitely give us growth.

    — Mr. Sunil Gupta

Debt Repayment

  • Prepayment of Agastya and Anant loans Debt Repayment · within 3 to 4 years · Medium confidence Prepaid
    But we are very hopeful in both the loan, we will prepay with an internal accrual. With the deployment of both these vessels, our accrual will be higher, and we are hopeful to repay both these loans within a period of 3 to 4 years.

    — Mr. Vinay Agarwal

What to watch in Q4 FY26

Anant vessel deployment

Q1 FY27
Current Acquisition in process, expected deployment in Q1 FY27
Target Operational in Q1 FY27

Why it matters

Anant is a new vessel expected to contribute significantly to revenue and growth, and its timely deployment is crucial.

And we are hopeful to complete this acquisition within this financial year, and the vessel will be deployed in Q1 FY '27.

Risks & concerns

  • Vessel dry docking impacting Q4 performance

    medium

    Seamec Paladin is on dry dock for 2 months in Q4, which will lead to lesser revenue and profitability for the quarter.

    Management acknowledged

  • Operational breakdowns of vessels

    low

    Vessel breakdowns are inherent to machinery operations, but past issues have been addressed without client concerns or penalties.

    Analyst acknowledged

Q&A highlights

7 direct
Sustainability of charter rates Direct
So on the charter rates, right now, as a company management, we feel that the environment is going to remain quite steady and the rate what we are getting is going to sustain for some more time.

Addresses investor concern about the cyclical nature of charter rates and provides management's positive outlook on sustained high rates.

Asked by Abu Rafe

Delay in Anant vessel deployment Partial
So we are also, we are till now in the process of acquiring the vessel. All received approval from shareholders and the Board of Directors of both the companies are in place. And we are hopeful to complete this acquisition within this financial year, and the vessel will be deployed in Q1 FY '27.

Clarifies the reasons for the delay in Anant's deployment, attributing it to approval processes, and provides a revised timeline for its operationalization.

Asked by Abu Rafe

Quarterly vs. Yearly performance stability Direct
See, we always tell our investors while we are in the process of consolidating business. But this is a business where investors should look on year-to-year growth than quarter-to-quarter. There might be times when a vessel is off-hire because of dry dock or a vessel is out of business because of changeover of contracts. This may have some anomaly.

Management advises investors to focus on annual growth rather than quarterly fluctuations due to operational factors like dry docking and contract changes, setting expectations for future performance.

Asked by Abu Rafe

Differences in charter rates across the fleet (Agastya vs. Swordfish vs. Anant) Direct
See, your question itself contains the answer. It is the rate for each and every contract is a different rate, and it all depends upon the factor the way you have spoken. So Swordfish is a vessel which has got better capabilities than Anant. So that's why it is fetching a higher rate. It is a cranage-wise, it is accommodation wise, it is bigger than the Anant.

Explains that charter rates vary based on vessel capabilities (cranage, accommodation), size, and contract specifics, justifying the observed differences in rates.

Asked by Rahul Jain

Growth strategy and capital allocation for surplus cash Direct
So definitely, there will be growth. As of now, we have, we are thinking of growth only basis the assets that we have, except for Anant, which will be added in Q4, okay? Second, the cash flow that is used that is generated will be used for acquiring growth assets like in Anant, definitely, we will be paying from our internal accruals to a major extent. And whatever money is left over will be used for a reduction of debt.

Outlines the company's dual strategy of organic growth through existing assets and inorganic growth via acquisitions like Anant, funded by internal accruals and debt reduction.

Asked by Amish Kanani

Impact of vessel breakdowns and potential client compensation Direct
However, the breakdown, which you are referring to for the last quarter, that has been addressed. And there has been never any kind of concern from the client because clients also understand that since it is a machinery and it is prone to break down. So those kind of issue may happen and they do happen with everybody.

Management confirms that past vessel breakdowns have been resolved, clients understand the nature of machinery, and no penalties or compensation were incurred, alleviating concerns about operational disruptions.

Asked by Amish Kanani

IMR vs. EPC revenue mix and strategic shift Direct
So we are inclined to put ourselves to the IMR contract. The reason being in that contract, we are getting deployment for the whole year. So there is no off-hire period, the monsoon also. But just to keep our portfolio diverse, we have kept 2 vessels of, which are catering to the EPC business.

Highlights the strategic preference for IMR contracts due to year-round deployment and higher margins, while maintaining some EPC business for portfolio diversification.

Asked by Deepali Kumari

Capitalization on increased ONGC exploration activity Direct
So if you, the block which has been acquired by ONGC, they will undergo now the process of extracting crude, which is going to be a long run process and it will take anywhere around 4 to say 6 years to commercialize the extraction from those blocks. Only then the scope for us will arise for our kind of vessel.

Management clarifies that increased ONGC exploration activity will not immediately benefit Seamec, as the commercialization of crude extraction is a long-term process (4-6 years) before demand for Seamec's vessels arises.

Asked by Deepali Kumari

3 min read 5 chapters

Detailed narrative

Q3 FY26 Performance Highlights and Industry Outlook

SEAMEC Ltd delivered a landmark Q3 FY26, achieving its highest ever vessel deployment, which translated into record quarterly revenue and profitability. Consolidated revenue surged by 138% YoY to INR331 crores, while consolidated EBITDA grew 347% YoY to INR150 crores. The company also reported a consolidated PAT of INR100 crores, a significant turnaround from a loss of INR3 crores in Q3 FY25. Management highlighted India's position as a fast-growing economy driving sustained energy consumption, reinforcing its strategic importance in the global petroleum production market. Global oil demand is projected to remain above 100 million barrels per day until 2040, underscoring the long-term relevance of offshore and energy infrastructure services.

Vessel Operations and Fleet Status

The company's fleet, including Seamec II, Seamec III, Seamec Princess, Seamec Glorious, Seamec Diamond, and Seamec Agastya, are currently operational. Seamec Agastya commenced operations with ONGC through HAL Offshore following successful dry docking. Seamec Paladin is undergoing statutory dry docking in Dubai, expected to last approximately 70 days and return by March end. Seamec Diamond is also planned for dry dock in the current quarter. Additionally, three other vessels (Seamec III, Seamec Princess, Seamec Glorious) are scheduled for dry dock in FY27 during the monsoon period, which is expected to minimize revenue disruption.

Acquisition Strategy and Capital Allocation

SEAMEC is in the process of acquiring the Anant vessel, with deployment expected in Q1 FY27, following necessary approvals. The Agastya vessel was acquired for USD23 million, funded by a mix of internal sources and INR850 crores of debt, repayable over 8 years. The Anant acquisition will be funded 50-50 by own funds and a term loan for 5-8 years. Management expressed confidence in prepaying both Agastya and Anant loans within 3-4 years. The company has also committed to an investment of approximately INR1,000 crores over the next 2-3 years for the targeted acquisition of one or more vessels, aiming to expand capabilities and assets.

Charter Rate Dynamics and Contract Structure

Management believes that current charter rates are sustainable and will remain steady for some time, supported by a mix of long-term and short-term contracts. Differences in charter rates across the fleet, such as Swordfish fetching higher rates than Anant, are attributed to variations in vessel capabilities, cranage, accommodation, and size. The company is strategically inclined towards IMR (Inspection, Maintenance, and Repair) contracts due to year-round deployment and higher margins, while maintaining some EPC (Engineering, Procurement, and Construction) business for portfolio diversification.

Overseas Operations and Business Strategy

The company's overseas subsidiary, Seamec International, contributed INR15 crores in revenue for the quarter but had a net negative impact of INR2 crores on PAT. Management noted a conscious effort to reduce negative impacts from overseas business and consolidate core operations. A significant benefit of over INR22 crores in revenue was realized this quarter from the Goodman vessel, which was owned by HAL Offshore but contracted by Seamec to build new businesses. The strategy is to bid new contracts through Seamec to increase its business share, gradually depleting HAL Offshore's business as contracts expire.

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