ABS Marine Services Ltd Q1 FY26 Earnings Analysis

- Expected revenue growth driven by long-term contracts secured worth over Rs. 350 crores, including sizeable contracts with ONGC and Schlumberger Asia Services. - H1 FY ‘26 projected revenue around Rs. 135-140 crores, showing a significant uptick from previous periods. - Increased EBITDA margins anticipated at 40-45% for FY ’25-’26, up from the current 33%, supported by improved charter rates and newer vessel acquisitions. - Full impact of IPO-funded vessel acquisitions expected to reflect in upcoming quarters, boosting asset efficiency and revenues. - Continued focus on expanding the fleet with younger, high-spec vessels and winning long-term contracts to ensure consistent and recurring revenue streams. - Market conditions favorable with tight supply of compliant offshore vessels and rising demand, supporting sustained growth. - Strategic emphasis on digitalization, decarbonization, and strengthened marine and port services to further diversify revenue sources and enhance growth.

- EBITDA margins are expected to increase to the range of 40%-45% going forward (FY 25-26). - Absolute increase in EBITDA margins is projected to be around 100%. - Earnings from ship-owning business anticipated to rise to 55%-60% of revenue, reducing ship management contribution to about 40%. - Full impact of IPO-funded vessel acquisitions expected to reflect in coming quarters, with long-term contracts strengthening revenue visibility. - New contracts like the Rs. 197 crore well stimulation vessel and Rs. 102 crore ONGC contract commenced in H2 FY 25; contributing to revenue and margin improvement. - Management targets improved PBT in line with EBITDA margin growth. - EPS for FY 25 stood at Rs. 11.44 (Consolidated), with expectations of upward trajectory alongside vessel acquisition and contract renewals. - Dividend plans to be considered once asset base growth and IPO commitments are fulfilled.

- ABS Marine Services has expanded its fleet by acquiring DP2 platform supply vessels Ocean Diamond and Emerald, both under active contracts. - A third DP2 vessel is scheduled for delivery in Q1 of FY ’26. - The company plans disciplined acquisition of younger high-spec vessels as a key strategic priority. - Capital allocation is focused on vessel acquisitions and growing the asset base as committed in the IPO. - No further fund raises are planned currently; focus remains on settling operations of the recent acquisitions. - Investment in digitalization and advanced fleet management systems is part of the strategic roadmap. - Commitment to decarbonization and green shipping is emphasized for long-term sustainability. - Pursuing expansion in marine and port services as part of future growth plans.

- As of the conference call in June 2025, ABS Marine Services Limited has no planned fund raise through equity or debt in the near term. - Management is currently focused on completing recent vessel acquisitions and securing long-term contracts for them before considering further fundraising. - The company plans to maintain a disciplined debt-equity model around 70%-30% or 75%-25% for vessel acquisitions. - No announcements or indications of new fundraising activities for the second half of FY '26 or beyond were made.

- ABS Marine Services Limited currently has a strong and growing order book. - They have secured a Rs. 197 crore contract for a well stimulation vessel ("Celestial") on a 3-year firm term, started from November 2024, with options to extend by two additional 3-year terms. - A Rs. 10.23 crore contract exists for a harbor craft patrol boat being built and to be delivered by July 2025 under the Make in India scheme. - The company is actively working on acquiring at least one more vessel this month to be tied up with a forthcoming contract. - Several tenders from oil majors are anticipated in the near term, with ABS Marine planning to participate. - The focus remains on disciplined vessel acquisitions backed by long-term contracts to ensure order book visibility and stable revenue streams.