Knowledge marine & engineering works Limited delivered one of its strongest quarterly performances in recent history during Q3 FY26, as revealed in its earnings call held on February 19, 2026. The marine engineering and dredging company demonstrated significant growth momentum across all key financial metrics.

Financial Performance Highlights

The company's financial results for Q3 FY26 showcased exceptional growth across all parameters:

The 56% year-on-year revenue increase underscores the acceleration in the company's growth trajectory, reflecting scaling efficiencies from expansion initiatives, improved realizations, and stronger market demand across key segments. The quarter-on-quarter growth of 79% demonstrates the company's ability to capitalize on its expanding order book and operational capabilities.

Major Contract Wins and Order Book

Knowledge Marine & Engineering Works secured substantial orders across its three business verticals during the quarter:

Shipbuilding Contracts

• Orders worth over INR230 crores from Inland Waterways Authority of India
• Supply of work boats, accommodation boats, survey boats, and cutter suction dredgers
• Execution period: 2 years

Long-term Chartering Agreements

• Significant orders from Vishakhapatnam port and VOC port
• Construction and chartering of 60-tonne bollard pull green tugs
• Total contract value: approximately INR700 crores
• Execution period: 15 years

Specialized Dredging Projects

• Capital dredging contract at JNPT port coastal berth
• Contract value: INR50 crores
• Execution period: 6 months
• Technical scope: dredging with controlled drilling and blasting

Current Order Book and Pipeline

The company's robust order book position reflects strong market demand:

Fleet Operations and Utilization

Knowledge Marine & Engineering Works operates a comprehensive fleet of 45 vessels:

• 16 dredgers
• 3 hopper barges
• 11 support vessels for dredging equipment
• 15 port ancillary crafts (survey boats, patrol boats, pilot boats, and tugs)

The company reported 100% fleet utilization with dredgers operating 270-300 days annually and port ancillary crafts utilized throughout the year.

Capital Raising and Corporate Actions

To support its growth trajectory, the company successfully raised INR285 crores through preferential issue of equity shares and warrants. The capital allocation includes:

The company also implemented a share subdivision from INR10 to INR5 effective December 22, 2025, to enhance liquidity and retail participation.

Tax Structure Optimization

Knowledge Marine & Engineering Works has adopted the tonnage tax scheme, which provides significant tax advantages. The company expects the effective tax rate to be less than 1% of turnover, substantially lower than the previous corporate tax structure. This transition supports the company's profitability enhancement initiatives.

Market Position and Growth Outlook

The company maintains a strong competitive position with less than 2% market share in the overall dredging market, indicating substantial growth potential. In the small craft business, Knowledge Marine operates less than 25 vessels out of 550-600 vessels required across 12 major ports, presenting significant expansion opportunities.

With the government's focus on developing 20 additional national waterways, the inland waterway dredging market is expected to grow from INR1,500 crores to INR5,000 crores, providing a favorable operating environment for the company's continued expansion.

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.