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, including the issuance of a postal ballot notice for enhancing borrowing limits.

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.

Postal Ballot Notice for Borrowing Limit Enhancement

The company has issued a postal ballot notice dated February 12, 2026, seeking shareholder approval for a special resolution to enhance its borrowing limits. The proposal aims to increase the company's borrowing capacity from Rs. 500 crores to Rs. 1,200 crores to support existing and proposed business expansion and growth plans.

The company has engaged MUFG Intime India Private Limited to provide remote e-voting facility to its members. Ms. Preeti Singhania of P Singhania & Associates, Chartered Accountants, has been appointed as the scrutinizer for conducting the postal ballot process.

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.

Strategic Corporate Actions

The board approved several important strategic initiatives during the quarter:

Capital Structure 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.

The company's current equity share capital structure reflects recent corporate actions with 2,44,44,108 equity shares of Rs. 5.00 face value each, totaling Rs. 1,222.21 lakhs in equity share capital.

Knowledge Marine & Engineering Works Limited has filed its monitoring agency report for the preferential issue proceeds utilization during the quarter ended December 31, 2025, in compliance with SEBI regulations. The report was prepared by CARE Ratings Limited, the appointed monitoring agency, and approved by the company's Audit Committee and Board of Directors on February 12, 2026.

Issue Details and Fund Allocation

The preferential issue raised Rs. 284.81 crore through equity shares and convertible equity share warrants. The proceeds are designated for three primary objectives with specific allocations.

Fund Utilization Status

During Q3 FY26, no proceeds were utilized for any of the stated objectives. The company received Rs. 273.70 crore out of the total issue size, with Rs. 11.11 crore yet to be received. All received funds remain unutilized and are parked in fixed deposits and monitoring accounts with banks.

Deployment of Unutilized Proceeds

The company has deployed the unutilized funds across fixed deposits with multiple banks to ensure safety and earn returns. The deployment strategy shows diversification across three banking institutions.

Implementation Timeline and Compliance

The company received funds in tranches between October 23, 2025, and October 28, 2025. According to the offer document, all objectives must be completed within three years from receipt of funds, providing a timeline extending to October 2028 for fund utilization.

Monitoring Agency Assessment

CARE Ratings Limited confirmed no deviations from the objects stated in the offer document. The monitoring agency verified that all unutilized funds are appropriately parked in fixed deposits and monitoring accounts as per regulatory requirements. The report indicates this is the first monitoring agency report for the preferential issue, with no major deviations observed. All certifications were provided by RSSA & Associates, chartered accountants, with proper UDIN authentication for the quarter ended December 31, 2025.