Knowledge Marine & Engineering Works Limited has announced its unaudited consolidated financial results for the quarter ended December 31, 2025, demonstrating strong operational performance across its marine engineering and dredging operations. The company's board meeting held on February 12, 2026, approved the quarterly results and key strategic decisions.

Financial Performance Highlights

The company delivered robust financial performance in Q3 FY26 with significant growth across key metrics:

The company's nine-month performance also showed strong momentum with consolidated revenue from operations reaching Rs. 18,866.28 lakhs compared to Rs. 15,323.17 lakhs in the corresponding period of the previous year.

Segment-wise Performance

Knowledge Marine & Engineering Works operates across multiple business segments, each contributing to the overall growth:

Dredging and Ancillary Services

This segment generated revenue of Rs. 6,343.36 lakhs in Q3 FY26 compared to Rs. 3,287.50 lakhs in Q3 FY25. For the nine months ended December 31, 2025, this segment contributed Rs. 12,518.03 lakhs in revenue.

Ship Building and Repairing

The newly operational ship building segment reported revenue of Rs. 2,658.10 lakhs for Q3 FY26 and Rs. 4,199.87 lakhs for the nine-month period, marking the company's successful diversification into shipbuilding activities.

Geographic Operations

The company's international operations in Bahrain and Myanmar contributed to the overall revenue mix, though Myanmar operations showed no revenue in the current quarter while Bahrain operations are being restructured.

Strategic Corporate Actions

The board approved several important strategic initiatives during the quarter:

Taxation and Regulatory Updates

The company received approval from the Joint Commissioner of Income Tax, Mumbai under section 115VP(3) for the Tonnage Tax Scheme, effective for 10 years beginning from Assessment Year 2026-27. This scheme allows the company to compute income from qualifying shipping activities on a presumptive basis with reference to net tonnage rather than actual profits.

Subsidiary Integration and Expansion

Knowledge Marine & Engineering Works approved the amalgamation scheme for two wholly-owned subsidiaries - Knowledge Infra Ports Private Limited and Indian Ports Dredging Private Limited - into the parent company, subject to regulatory approvals. The company also completed the acquisition of Knowledge Shipyard Private Limited (formerly Kamal Marine & Engineering Works Limited) on August 6, 2025.

Capital Structure and Share Information

The company's equity share capital structure reflects recent corporate actions:

The preferential issue approved in September 2025 for Rs. 284.81 crores resulted in the company receiving Rs. 273.70 crores through a combination of equity shares and convertible warrants.

Knowledge Marine & Engineering Works Limited's board of directors has approved a comprehensive scheme of amalgamation involving two wholly-owned subsidiaries during their meeting held on January 30, 2026. The decision represents a strategic move to consolidate operations and streamline the company's corporate structure.

Amalgamation Details

The board approved the amalgamation of Indian Ports Dredging Private Limited and Knowledge Infra Port Private Limited with Knowledge Marine & Engineering Works Limited under Sections 230 to 232 of the Companies Act, 2013. The scheme is subject to necessary statutory and regulatory approvals, including approval from the National Company Law Tribunal, Mumbai Bench.

Key Features of the Scheme

The proposed amalgamation includes several important provisions. The entire assets and liabilities of the transferor companies will be transferred to and recorded by the parent company at their respective carrying values. All inter-company balances and investments among the companies will stand cancelled as a result of the scheme.

Since the entire share capital of both subsidiaries is held by Knowledge Marine & Engineering Works Limited, no equity shares will be allotted in exchange for the holdings. The equity shares held by the company in the transferor companies will stand cancelled on the effective date without any further documentation.

Company Profiles and Business Areas

Indian Ports Dredging Private Limited was incorporated on March 20, 2017, with CIN U74999MH2017PTC292712, and is primarily engaged in dredging business. Knowledge Infra Ports Private Limited was incorporated on April 15, 2019, with CIN U74999MH2019PTC324093, and is also engaged in dredging operations.

Financial Position

As of September 30, 2025, the financial details reveal the scale of the amalgamation:

Strategic Rationale

The amalgamation aims to achieve multiple strategic objectives including operational synergies and cost optimization. The merger will enable the company to leverage combined work experience, assets, capabilities, and infrastructure for optimal resource utilization and economies of scale.

Key benefits include:

• Enhanced tender participation capabilities through combined work experience
• Simplified management structure leading to administrative cost savings
• Streamlined group holding structure with reduced number of entities
• Improved cash flows and efficient capital utilization
• Significant reduction in legal and regulatory compliance requirements

The transaction falls within related party provisions as the subsidiaries are wholly-owned by the parent company. However, pursuant to Ministry of Corporate Affairs General Circular No. 30/2014, transactions arising from amalgamations under specific Companies Act provisions do not fall within the purview of related party transactions under Section 188.