Dredging Corporation of India Limited has announced a Board of Directors meeting scheduled for February 5, 2026, to review and approve the company's quarterly financial performance. The meeting will focus on considering the unaudited financial results for the quarter ended December 31, 2025, marking the Q3FY26 results review.

Meeting Details and Compliance

The company has formally notified both major stock exchanges about the upcoming board meeting. The notification was sent to the National Stock Exchange of India Limited, where the company trades under the symbol DREDGECORP, and to the Bombay Stock Exchange Limited, where it is listed with scrip code 523618.

Regulatory Framework

The intimation has been submitted in accordance with Clause 29(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates that listed companies must inform stock exchanges about board meetings where financial results will be considered, ensuring transparency and timely disclosure to investors and market participants.

Company Information

Dredging Corporation of India Limited operates with its head office located at "Dredge House," H.B. Colony Main Road, Seethammadhara, Visakhapatnam-530001. The company's registered office is situated at Core-2, First Floor, Scope Minar, Laxminagar District Centre, Delhi-110092. The company maintains ISO certifications including ISO 14001:2016, ISO 9001:2016, and ISO 45001:2018, demonstrating its commitment to quality and environmental management standards.

The notification was signed by P Chandra Kalabhinetri, Company Secretary, and dated January 16, 2026, providing adequate advance notice to stakeholders as required by regulatory guidelines.

Dredging Corporation of India Limited has received reaffirmed credit ratings from Care Edge Rating for its bank facilities, maintaining its investment-grade status despite operational challenges. The rating agency has confirmed its assessment of the company's financial position and operational capabilities in the dredging sector.

Credit Rating Details

Care Edge Rating has reaffirmed ratings for the company's bank facilities totaling ₹453.64 crore across multiple categories:

The rating reaffirmation reflects the company's established market position and strong promoter support, while acknowledging ongoing operational and financial challenges.

Financial Performance and Challenges

The company demonstrated revenue growth with total operating income rising to ₹1,142 crore in FY25 from ₹945 crore in FY24, representing a 21% year-on-year increase. This growth continued in H1FY26 with revenue reaching ₹454 crore compared to ₹355 crore in H1FY25, marking a 28% increase.

Despite revenue growth, profitability faced significant pressure due to liquidated damages of ₹118 crore levied for performance shortfalls and foreign exchange losses on unhedged Euro-denominated borrowings. The company reported net losses in both FY25 and H1FY26.

Promoter Support and Order Book Position

The company benefits from strong promoter backing through a consortium of four major port trusts: Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust, and Deendayal Port Trust. These promoters have provided ₹315 crore in unsecured loans as of March 31, 2025, with an additional ₹165 crore received during FY25 to support operations and new dredger acquisition.

The order book position remains satisfactory at ₹1,422 crore as of September 30, 2025, compared to ₹1,005 crore as of August 14, 2024. This provides revenue visibility for approximately 1.25 years, with the top five orders accounting for 83% of the total order book.

Fleet Modernization and Future Outlook

The company is addressing its aging fleet challenges through a significant modernization initiative. A new Trailing Suction Hopper Dredger with 12,000 cubic meter capacity is under construction at Cochin Shipyard Limited at a cost of €89.39 million. The project is financed through a €49.9 million ECB loan from Deutsche Bank, with the balance funded by promoter contributions and non-convertible debentures.

The new dredger, scheduled for commissioning by October 2026, is expected to enhance operational efficiency, reduce fuel costs, and support both maintenance and capital dredging activities. This modernization effort aims to improve the company's competitive position and revenue profile from FY27 onwards.

Risk Factors and Rating Sensitivities

The rating agency identified several key risk factors including the aging fleet resulting in high maintenance expenses, vulnerability to foreign exchange fluctuations, and increased competition from domestic and international players. The company incurred ₹34 crore in forex losses during H1FY26 on its unhedged Euro loan exposure.

Positive rating factors include maintaining operations above ₹1,000 crore with PBILDT margins over 18% and improving collection days below 200 days. Negative factors encompass increased working capital intensity and overall gearing above 1.5x on a sustained basis.