Dredging Corporation of India Limited has submitted its quarterly compliance certificate to stock exchanges, fulfilling regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018.

Regulatory Compliance Filing

The company filed its certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. This mandatory filing relates to the proper handling and processing of physical share certificates received for dematerialization during the reporting period.

Certificate Confirmation

The certificate confirms that securities comprised in physical share certificates received for dematerialization have been properly processed. According to the filing, after due verification, the physical certificates have been immediately mutilated and cancelled, with records substituted to reflect the depository as the registered owner.

The company secretary P. Chandra Kalabhinetri signed the compliance certificate on behalf of Dredging Corporation of India Limited. The certificate was submitted to both major stock exchanges where the company's shares are traded.

Stock Exchange Details

Registrar Confirmation

KFin Technologies Limited, serving as the company's registrar and transfer agent, provided additional certification dated April 1, 2026. C Shobha Anand, Vice President at KFin Technologies Limited, certified that all required details of securities dematerialized and rematerialized during the quarter have been furnished to stock exchanges where the company's shares are listed.

Company Information

Dredging Corporation of India Limited operates with its head office located at Dredge House, H.B.Colony Main Road, Seethammadhara, Visakhapatnam. The company's registered office is situated at Core-2, First Floor, Scope Minar, Laxminagar District Centre, Delhi. The filing indicates the company is celebrating its 50th Golden Jubilee, marking the period from 1976-2026.

Dredging Corporation of India Limited (DCIL) has received reaffirmation of its credit ratings from Care Edge Rating, maintaining stability in its financial assessment despite operational challenges. The rating agency has reaffirmed ratings for bank facilities totaling ₹669.55 crore, reflecting the company's established market position and strong promoter support.

Rating Details and Facility Enhancement

Care Edge Rating has reaffirmed DCIL's credit ratings across multiple facility categories, with a notable enhancement in long-term bank facilities:

The enhancement in long-term bank facilities from ₹188.64 crore to ₹404.55 crore indicates increased credit requirements, primarily driven by the company's fleet modernization initiatives and operational expansion needs.

Strong Promoter Support and Order Book Position

The rating reaffirmation draws strength from DCIL's robust promoter backing and satisfactory order book position. The company benefits from strong promoter support, with unsecured loans from promoters standing at ₹342 crore as of February 28, 2026. This financial backing from the consortium of four major ports provides crucial liquidity support for operations and capital expenditure requirements.

DCIL maintains a satisfactory order book of ₹1,422 crore as of September 30, 2025, compared to ₹1,005 crore as of August 14, 2024, providing revenue visibility of approximately 1.25 years. The top five orders account for 83% of the order book, while reliance on promoter ports has increased to 43%, reflecting the strategic benefits of the ownership structure.

Financial Performance and Operational Challenges

The company's financial performance presents a mixed picture, with revenue growth offset by profitability pressures:

DCIL recorded 21% year-on-year revenue growth in FY25, reaching ₹1,142 crore from ₹945 crore in FY24. However, profitability was adversely impacted by liquidated damages of ₹118 crore for shortfall in performance obligations and forex losses from INR/EURO exchange rate depreciation. The company reported a net loss in both FY25 and 9MFY26, though it recovered ₹17 crore during H1FY26, supporting improvement in PBILDT margin to 14.35% in 9MFY26 from 12.23% in FY25.

Fleet Modernization and Capacity Enhancement

DCIL is addressing its aging fleet challenges through strategic modernization initiatives. The company's dredging fleet has an average age of over 23 years, leading to frequent breakdowns and higher maintenance costs. To counter this, DCIL has signed an agreement with Cochin Shipyard Limited for construction of a new Trailing Suction Hopper Dredger with 12,000 cubic metres capacity at a cost of €89.39 million.

The new dredger, DCI Dredge Godavari, scheduled for commissioning by October 2026, is expected to enhance operational efficiency and support both maintenance and capital dredging activities. Financial closure is complete, with €49.9 million funded through an ECB loan from Deutsche Bank, while the balance will be met through promoter contributions and NCD subscription.

Risk Factors and Rating Sensitivities

The rating agency has identified several risk factors that could influence future rating actions. Key challenges include:

• Foreign Exchange Exposure: The company remains vulnerable to forex risk due to Euro-denominated loans and reliance on imported components, though it has hedged its foreign currency loan since December 2025
• Competitive Pressures: Increased competition from domestic and global players following sector liberalization
• Operational Risks: Aging fleet leading to higher maintenance expenses and reduced efficiency
• Leverage Concerns: Expected moderation in leverage indicators due to debt-funded capex in the near term

The stable outlook reflects satisfactory order book position providing revenue visibility and continued promoter support. Positive rating factors would include scale of operations above ₹1,000 crore with PBILDT margins over 18% on a sustained basis, while negative factors include overall gearing above 1.5x or net debt/PBILDT rising above 5x on a sustained basis.