Knowledge Marine & Engineering Works Limited Reports Strong H1 FY26 Performance, Showcases Strategic Expansion

Knowledge Marine & Engineering Works Limited (KMEW) has released its investor presentation for the un-audited consolidated and standalone financial results for the quarter and half year ended September 30, 2025. The company's performance and strategic initiatives highlight its growth trajectory and expansion into new maritime segments.

Financial Highlights

KMEW has demonstrated robust financial performance in H1 FY26. Here's a breakdown of key financial metrics:

Metric	H1 FY26 (Rs. Crore)	H1 FY25 (Rs. Crore)	YoY Change
Revenue	98.50	95.80	+2.82%
EBITDA	40.30	38.30	+5.22%
Net Profit	21.90	22.20	-1.35%
EPS (Rs.)	20.63	20.15	+2.38%

The company has maintained a strong EBITDA margin of 40.91% in H1 FY26, showcasing operational efficiency despite challenging market conditions.

Strategic Milestones and Expansion

10-Year Anniversary: KMEW celebrated its 10-year milestone, marking a decade of transformation from a ship-repair enterprise to a leader in India's maritime ecosystem.
Green Tug Contracts: The company secured significant contracts in the green tug segment:
- A Rs. 326.93 crore contract with VOC Port for a 15-year tenure
- A Rs. 325.70 crore contract with VPA for a 15-year tenure
Cruise Tourism Entry: KMEW entered the maritime tourism sector with a project from MP Tourism to build and operate a luxury cruise ship on River Narmada for 20 years.
Shipbuilding Expansion: The company has expanded into ship design, construction, and vessel building with confirmed work orders from IWAI.

Order Book and Future Outlook

KMEW reported a strong order book across its business segments:

Segment	Order Book Value (Rs. Crore)
Dredging	272.45
Charter Hire	651.56
Shipbuilding	190.12
Total	1,114.13

This robust order book provides revenue visibility and underscores the company's diversified business model.

Management Commentary

Saurabh Daswani, Managing Director of KMEW, stated, "Our performance in H1 FY26 reflects our strategic focus on high-margin segments and our ability to secure long-term contracts. The entry into green tugs and cruise tourism aligns with India's maritime vision and positions us for sustainable growth."

Conclusion

KMEW's H1 FY26 results and strategic initiatives demonstrate the company's commitment to growth and innovation in the maritime sector. With a strong order book and expansion into new segments, KMEW is well-positioned to capitalize on the opportunities presented by India's evolving maritime landscape.

Investors should note that while the company has shown resilience in its financial performance, the slight dip in net profit warrants attention to cost management and operational efficiencies in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.44%	-0.54%	+16.08%	+94.07%	+52.88%	+54.66%

Knowledge Marine & Engineering Works Limited (KMEW) has announced a significant milestone in its commitment to sustainable maritime solutions. The company has been awarded a ₹384.33 crore contract by Visakhapatnam Port Authority for green tug management services, marking its second major order in the state-of-the-art Green Tug segment.

Contract Details

Aspect	Details
Contract Value	₹384.33 Crores (including taxes)
Duration	15 years
Scope	Manning, Operation, Maintenance, and Complete Technical Management of 01 No. ASTDS-GTTP Tug
Awarding Authority	Visakhapatnam Port Authority

Significance of the Order

This contract win is noteworthy for several reasons:

Sustainability Focus: The order aligns with KMEW's commitment to environmentally responsible marine operations and supports India's Green Tug Transition Program (GTTP).
Long-Term Revenue Stream: With a 15-year contract duration, this provides KMEW with a stable, long-term revenue source.
Technological Advancement: The green tug is designed with advanced battery operating systems and zero-emission technology, positioning KMEW at the forefront of maritime decarbonization efforts in India.
Market Position: This second order strengthens KMEW's position in the green maritime transformation sector, demonstrating the company's growing expertise and reliability in this niche.

Strategic Implications

The CEO of KMEW, Mr. Sujay Kewalramani, emphasized the strategic importance of this contract, stating, "Securing the second green-tug order under a long 15-year operating period is a strategic milestone for KMEW and a strong validation of our technology, reliability, and execution capability."

He also highlighted the potential for cost synergies and operational efficiencies, noting, "The construction of Two Green Tugs together will help us in leveraging construction and procurement synergies that directly lower capex costs."

Industry Context

This contract is part of a larger initiative in India's maritime sector. The Green Tug Transition Program, launched as part of the Maritime India Vision 2030, aims to replace diesel-powered harbor tugs with zero-emission alternatives. With an estimated market size of approximately ₹12,000 crore, this program presents significant opportunities for companies like KMEW that are positioned to compete in this evolving sector.

Conclusion

KMEW's latest contract win not only bolsters its order book but also reinforces its position as a key player in India's transition towards greener maritime operations. As the country continues to push for sustainable practices in its ports and shipping industry, KMEW appears well-positioned to capitalize on these opportunities, potentially driving long-term growth and value for its stakeholders.

Investors and industry observers will likely keep a close watch on KMEW's execution of this contract and its future participation in similar green initiatives within the maritime sector.