Great Eastern Shipping Company , India's leading private sector shipping company, has announced its financial results for the first quarter of fiscal year 2026, demonstrating resilience in a challenging market environment.

Financial Highlights

The company declared its 14th consecutive interim dividend at Rs. 7.20 per share, representing a 27% payout on standalone earnings. This marks an increase from the previous payout ratio of around 20% over the last three years, potentially signaling a shift in the company's dividend strategy.

While net profit saw a significant year-over-year decline, it showed improvement compared to Q4 FY25. The company's consolidated net asset value increased slightly quarter-on-quarter due to earnings accrual.

Market Conditions and Fleet Performance

Great Eastern Shipping faced a mixed market environment across its various segments:

Despite the challenging conditions, the company maintains a strong financial position with net cash of approximately Rs. 4,500 crore ($600 million) on a standalone basis and Rs. 5,250 crore ($700 million) on a consolidated basis.

Offshore Segment

In the offshore segment, all of the company's rigs have secured contracts. Two rigs, Chetna and Chaaya, have short-term contracts starting after the monsoon season. The company expects some lumpy expenditure in the third and fourth quarters as these rigs prepare for their new contracts.

Market Outlook and Strategy

G. Shivakumar, Executive Director and CFO, commented on the market outlook: "The market's been strong. For the market to get stronger, you need either end user demand to go up or you need some logistical disruption which makes the fleet less efficient. On the demand side it doesn't appear that economies are doing very well."

The company maintains its strategy of operating about 80% of its fleet in the spot market, allowing it to capitalize on potential market upswings. However, this also exposes the company to market volatility, making earnings forecasts challenging.

Dividend Policy and Capital Allocation

Regarding the company's dividend policy, management stated that they consider capital requirements for fleet modernization and expansion when determining dividend payouts. The recent increase in payout ratio to 27% suggests a potential shift in capital allocation strategy, although the company maintains flexibility for future investments.

Great Eastern Shipping continues to navigate the volatile shipping market with a focus on operational efficiency and prudent financial management. While facing headwinds in certain segments, the company's diversified fleet and strong balance sheet position it well to weather market fluctuations and capitalize on potential opportunities.

Great Eastern Shipping Company , a prominent player in the Indian shipping industry, held its 77th Annual General Meeting (AGM) on August 1, 2025, marking significant changes in its leadership and governance structure.

Key Reappointments

The shareholders approved several crucial reappointments during the AGM:

• Mr. Ravi K. Sheth was re-appointed as a Director, retiring by rotation. Mr. Sheth, who holds a Bachelor's degree in Commerce and an MBA from the USA, has been associated with the company since July 1990.

• Mr. Shivshankar Menon, a distinguished diplomat and former National Security Advisor to the Prime Minister of India, was re-appointed as an Independent Director for a second term of five years, effective August 2, 2025.

• Mr. Bharat K. Sheth, who joined the company in 1981 and has served as Managing Director since 1999, was re-appointed as Managing Director for a period of five years, effective April 1, 2026.

• Mr. G. Shivakumar, a management graduate from IIM Ahmedabad who joined the company in 1990, was re-appointed as Executive Director for five years, effective November 14, 2025.

Alteration of Articles of Association

In a significant move, the company altered Article 92(1) of its Articles of Association. The amendment exempts Mr. Bharat K. Sheth from retirement by rotation as long as he continues to be a Director of the company. This change underscores the company's commitment to maintaining continuity in its top leadership.

Other Key Decisions

• The AGM approved the appointment of M/s. Mehta & Mehta, Company Secretaries, as Secretarial Auditors for a term of five financial years, starting April 1, 2025.

• Shareholders also accorded consent for Ms. Nirja Sheth to hold and continue to hold an office or place of profit in the company for five financial years, effective April 1, 2025.

Voting Results

The resolutions passed at the AGM received overwhelming support from shareholders:

The AGM, conducted through video conferencing, lasted from 3:00 p.m. to 3:59 p.m., reflecting the company's adaptation to modern meeting practices.

These decisions indicate Great Eastern Shipping's focus on maintaining strong leadership and governance structures as it navigates the complex waters of the global shipping industry.