Garware Offshore targets fleet expansion and operating profitability
Garware Offshore Services Limited is targeting fleet expansion with the acquisition of 2-3 mid-size vessels by 2028, supported by a rise in EBITDA to ₹116.79 million in FY 2025-26 despite a net loss of ₹117.02 million. The company has completed financial restructuring, reducing net debt significantly, and aims to capitalize on the recovering oil and gas sector through long-term contracts and prudent financial management.
*this image is generated using AI for illustrative purposes only.
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
| Particulars | FY 2024-25 | FY 2025-26 |
|---|---|---|
| Gross Income | 3321.29 | 4013.59 |
| Operating Expenses | 1519.57 | 1612.74 |
| Other Expenses | 1082.63 | 1232.93 |
| EBIDTA | 719.09 | 1167.92 |
| Interest | 184.22 | 443.29 |
| Depreciation | 1351.08 | 1809.83 |
| Net Profit / (Loss) | (796.09) | (1170.20) |
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.
Historical Stock Returns for Garware Offshore Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.64% | +11.07% | -4.57% | -25.04% | -54.53% | +448.60% |
How will the company manage rising interest costs and forex volatility while funding new vessel acquisitions through debt?
What specific criteria will determine the selection of joint venture partners for the planned fleet expansion?
How might the age profile of the current fleet impact the company's ability to secure competitive long-term contracts?
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