Great Eastern Shipping Company has received a rating reaffirmation from Brickwork Ratings India Pvt. Ltd. on January 05, 2026, for its Non-Convertible Debentures (NCDs). The rating agency has reaffirmed the BWR AAA rating with a stable outlook on NCDs worth ₹1,050.00 crore while withdrawing the rating on ₹700.00 crore worth of NCDs following their full redemption.

Rating Action Details

The rating action involves a significant reduction in the total rated amount from ₹1,750.00 crore to ₹1,050.00 crore. The detailed breakdown is presented below:

The BWR AAA rating indicates the highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk.

Key Rating Strengths

The rating reaffirmation is supported by several fundamental strengths. Great Eastern Shipping, established in 1948, brings over 75 years of operating experience as one of India's largest private sector shipping companies. The company operates under experienced management led by the Sheth family, with a board comprising nine out of 13 non-executive independent directors.

The company maintains a diversified business model across shipping and offshore segments through its wholly owned subsidiary Greatship India Limited (GIL). As of December 31, 2025, the shipping fleet comprised 40 vessels with aggregate capacity of approximately 3.17 million DWT and average age of around 15.00 years. The offshore segment operates 23 assets including 4 jack-up rigs and 19 offshore support vessels.

Financial Performance Highlights

Great Eastern Shipping demonstrated strong financial performance in FY25 with consolidated operational revenue of ₹5,395.00 crore. The company maintained robust profitability metrics:

The subsidiary GIL reported significant growth with 61% increase in income from ₹1,090.00 crore in FY24 to ₹1,758.00 crore in FY25, while PAT improved from ₹163.00 crore to ₹318.00 crore.

Risk Factors and Outlook

Despite the strong rating, the company faces inherent industry risks. The shipping and offshore sectors are characterized by cyclical demand patterns, volatile charter rates, and sensitivity to global economic conditions. Approximately 75%-85% of the fleet operates in spot markets, creating earnings volatility during rate corrections.

Foreign exchange exposure remains a key risk factor, as significant portions of revenue, costs, and borrowings are denominated in US dollars. The company manages this through synthetic fixed-rate USD loans via currency swaps, which resulted in mark-to-market gains of ₹72.00 crore in FY25.

NCD Portfolio Structure

The remaining ₹1,050.00 crore NCD portfolio consists of instruments issued between 2016 and 2020 with varying maturity dates extending to 2028. The coupon rates range from 7.99% to 8.85% with annual payment schedules. Most NCDs are unsecured with bullet repayment structures, except for ₹450.00 crore worth of NCDs that are secured by charges on assets and fleets.

The stable outlook reflects Brickwork Ratings' expectation that Great Eastern Shipping will maintain its strong business risk profile, supported by diversified fleet operations, established market position, and robust financial metrics across market cycles.

Great Eastern Shipping Company announced on December 31, 2025, the acquisition of a secondhand medium range tanker with a deadweight tonnage of 51,565 DWT. The vessel, manufactured in South Korea in 2013, represents a strategic addition to the company's growing maritime fleet and will be funded entirely through internal accruals.

Fleet Expansion and Composition

Following this acquisition, the company's owned fleet will expand to 39 vessels with a comprehensive mix of maritime assets:

Acquisition Timeline and Details

The South Korean-built tanker is scheduled for integration into the operational fleet during the fourth quarter of FY26. The vessel's specifications and delivery timeline align with the company's strategic expansion objectives:

Additional Fleet Transactions

Beyond the primary tanker acquisition, Great Eastern Shipping has contracted multiple vessel transactions scheduled for completion in Q4 FY26. The company is acquiring a secondhand very large gas carrier and a secondhand Ultramax dry bulk carrier while simultaneously divesting two vessels - the Kamsarmax dry bulk carrier Jag Aarati and the very large gas carrier Jag Vishnu.

Market Performance

Shares of Great Eastern Shipping demonstrated positive market response to the fleet expansion announcement, closing higher by 2.43% at ₹1,129.00 on the NSE on December 31. The stock performance reflects investor confidence in the company's strategic fleet enhancement initiatives and operational expansion plans.