Garware Offshore Services Limited has secured a Letter of Award (LOA) to charter one of its vessels for a period of four years, extendable by an additional year. The contract carries an annual value of approximately INR 31.00 crores. This development marks a significant operational milestone for the company, ensuring long-term revenue visibility from its offshore fleet.

The LOA was issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company disclosed that the finalization of this agreement is subject to the execution of a formal Charter Party Agreement. The contract duration includes a mandatory four-year term along with a provision for a one-year extension at the company's discretion.

The award underscores the continued demand for the company's offshore support vessels. The annual contract value of INR 31.00 crores will contribute to the company's revenue stream over the stipulated period. The final agreement execution is awaited to formalize the charter arrangements.

Garware Offshore Services has announced a focused expansion plan to acquire 2-3 mid-size vessels, specifically 80-ton Anchor Handling Tug Cum Supply Vessels (AHTSV) or 3000 DWT Platform Supply Vessels (PSV), between 2026 and 2028. This strategy follows the completion of a comprehensive financial restructuring exercise that reduced net debt to USD 4.24 million and INR 19 crores as of March 2026. The company, which currently owns and operates one PSV and two AHTSVs, aims to leverage its over 40 years of experience in the offshore sector to capitalize on the improving oil and gas market.

The company reported improved operational performance for the financial year 2025-26. While the net loss widened to ₹117.02 million from ₹79.61 million in the previous year, EBITDA rose substantially to ₹116.79 million compared to ₹71.91 million in FY 2024-25. The increase in net loss was attributed to higher finance costs, increased depreciation, and exceptional items including forex losses on debt. Gross income for the period grew to ₹401.36 million from ₹332.13 million in the prior year.

Financial Performance

Growth Strategy and Market Outlook

Management highlighted that the global OSV market is expected to reach USD 29 billion by 2032, driven by a revival in exploration and production (E&P) activity. The company plans to mitigate volatility risks by securing long-term contracts with reputable clients and maintaining a healthy balance sheet. Expansion efforts will be guided by a prudent financial framework, utilizing internal accruals, joint ventures, and debt funding. The company noted that 2 out of its 3 vessels are currently on term contracts, with negotiations underway for additional agreements ranging from 3 to 5 years.

Fleet and Operations

The present fleet includes M.V. Kamet, a DP2 PSV built in Norway in 2007; M.V. Mahananda, a 60-ton AHTSV built in China in 2009; and M.V. Mahanadi, an 80-ton AHTSV built in Indonesia in 2006. The company has successfully concluded a 9-month charter for a newly acquired AHTSV and is positioning itself to grow as a leading OSV player in India again.