Knowledge Marine & Engineering Works Ltd(KMEW)

NSE: KMEWBSE: 543273

₹ 3,165.3+1.14%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 8,029 crWebsite: www.kmew.inUpdated: 24 Oct 2026

About

Knowledge Marine & Engineering Works Ltd (KMEW) is a Mumbai-based marine infrastructure company engaged in dredging, charter and hiring of port ancillary craft, and shipbuilding. In FY26 it reported consolidated revenue of ₹256.28 cr across a fleet of 45+ vessels operating at 100% utilisation. The company holds an order book of over ₹1,300 cr as of Q1 FY27 and is expanding into green tugboats and commercial shipbuilding.^[1][2][3]

Business segments

Dredging and Ancillary Services: 70.8% of FY26 revenue (₹193.5 cr), the core segment covering capital and maintenance dredging at Indian ports.^[4]
Ship Building and Repairing: 19.5% of FY26 revenue (₹53.26 cr), executing IWAI orders for workboats, accommodation boats, survey boats and cutter suction dredgers.^[4][5]
Bahrain: 7.2% of FY26 revenue (₹19.65 cr); operations subsequently suspended with vessel redeployed to India due to geopolitical risk.^[4][2]
Geographical Dredging Services (Myanmar): 2.6% of FY26 revenue (₹7.09 cr); contract revenues dropped materially with vessel redeployed to Ghogha, Gujarat.^[4][2]

Fleet and operations

Fleet of 45+ vessels as of FY26, expanded from 16 in FY24; includes 15 dredgers and 25 port ancillary craft. Fleet utilisation held at 100% through FY26.^[2][6]
Dredgers operate 270 - 300 days per year; port ancillary craft operate 365 days per year as of Q3 FY26.^[5]
River Pearl 47, India's largest self-propelled backhoe dredger, was built and deployed for the JNPA rock-dredging project in Q1 FY27, with utilisation projected above 240 days/year for 2 - 3 years.^[2]
Saphale shipyard (15 acres, Palghar district, near upcoming Vadhavan Port) is under construction; Phase 1 capacity of 14 vessels/year with first vessel launches targeted before end of FY27.^[2][3]

Order book and pipeline

Order book as of Q1 FY27: >₹1,300 cr comprising ₹240 cr dredging, ₹850 cr charter/hire (including green tugs), ₹240 cr shipbuilding across 27 contracts, plus ₹200 cr intercompany.^[3]
Active bid pipeline of ₹3,500+ cr as of Q1 FY27: dredging ₹1,200+ cr, charter and hire ₹1,100+ cr, shipbuilding ₹1,400+ cr.^[3]
FY26 order inflows of ₹1,075 cr were the highest in KMEW's history. Historical order win rate is above 50%.^[2][3]
Dredging order book declined from ₹750 cr to ₹240 cr between Q2 FY26 and Q1 FY27, reflecting rapid execution of the JNPA and Pondicherry contracts.^[3][7]

Key operating numbers

Q1 FY27 revenue ₹115.41 cr (+138% YoY); EBITDA ₹73.41 cr (~64% margin, +258% YoY); PAT ₹62.75 cr (~54% margin, +466% YoY). Primary driver: JNPA rock dredging and Pondicherry maintenance dredging.^[3]
Green Tug segment carries EBITDA margin of 75% on 15-year fixed-charter contracts where payment is due regardless of utilisation.^[3]
Subcontracting expenses reduced to 5 - 6% of turnover from FY26 onwards, down from >40% in FY23 - 24 when JV billing arrangements inflated the figure.^[3]
Tonnage Tax Scheme adopted; effective tax on dredging and chartering revenues is less than 0.1% of those revenues.^[2]

Customers and distribution

Green tug contracts secured from V.O.C. Port Authority (₹326.93 cr) and Visakhapatnam Port Authority (₹325.70 cr), each for 15 years, with revenue commencing October 2027.^[7]
Inland Waterways Authority of India (IWAI) is the anchor shipbuilding customer; KMEW has secured over ₹230 cr in IWAI orders for workboats, survey boats, accommodation boats and cutter suction dredgers, plus a further ₹62.40 cr contract for 10 hybrid electric ferries in Q1 FY27.^[5][3]
Client base is concentrated among Indian ports and government bodies (JNPA, VOC Port, VPA, IWAI, Pondicherry Port); overseas operations in Bahrain and Myanmar have been suspended with vessels redeployed domestically.^[2]

Expansion and capex

Total capex of ~₹1,000 cr to be deployed within 1.5 years: ~₹250 cr on green vessels/green tugs, ~₹450 cr on dredging fleet, balance on shipyard construction.^[3]
Two additional trailing suction hopper dredgers adding ~12,000 m³ of combined hopper capacity were expected within 90 days of Q4 FY26 call (by ~June 2026).^[2]
Green tug physical construction planned to begin post-monsoon 2026 and complete within 9 months (~mid-2027); green tugs to be assembled in-house at the Saphale yard.^[2][5]
Saphale shipyard full build-out across Phases 1 - 3 targets 18 vessels/year; shipbuilding revenue expected to scale significantly from Q4 FY27.^[3]
Board approved a proposal to raise up to ₹500 cr via Non-Convertible Debentures for vessel acquisition, debt refinancing and working capital; overall borrowing limit approved at ₹1,200 cr.^[8]

Recent developments

September 2026: CARE Ratings upgraded the outlook on KMEW's long-term bank facilities from Stable to 'BBB+; Positive'; short-term facilities reaffirmed at 'A2'.^[9]
Q1 FY27: ₹150 cr preferential issue placed with 360 ONE PIPE Fund, FLC Investco and Bank of India Mutual Fund; additional ₹100 cr block deal in secondary market with SBI Funds Management.^[3]
Q1 FY27: IWAI contract secured for design, construction and supply of 10 hybrid electric passenger ferries (20-pax each) at ₹62.40 cr, 10-month tenure; first contract to be executed at Saphale shipyard.^[3]
FY26 AGM: equity shares proposed to be sub-divided 1:5 from ₹5 face value to ₹1 face value to improve liquidity and widen the shareholder base.^[8]
Q2 FY26: entered maritime tourism via a project to build and operate a luxury cruise ship on River Narmada with Madhya Pradesh Tourism Board, with revenue visibility of up to ₹800 cr over 20 years.^[7]

Market Cap

₹8,029 Cr

High / Low

₹3,392 / 1,096

Stock P/E

59.0

Price / Book

13.6

Book Value

₹233

EPS

₹32.2

No. of Shares

2.44 Cr

ROCE

16.3%

ROE

20.0%

OPM

34.4%

Debt / Equity

0.39

Sales

₹256 Cr

Net Profit

₹79 Cr

Promoter holding

50.3%

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Knowledge Marine & Engineering Works Ltd(KMEW)

About

Business segments

Fleet and operations

Order book and pipeline

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

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