Any current/future new fundraising through debt or equity?

For FY 26 capex (~₹500 crores), the funding mix includes: - Current cash in hand - Aligned debt - Potential future equity if needed, depending on market conditions and project requirements. Management prefers using cash and debt first before considering equity. Preference capital raised recently is already being deployed over 12 to 16 months for various phases of expansion, including shipyard development and dredger acquisition. No specific mention of immediate new fundraising plans beyond utilizing existing resources and aligned debt. Future equity issuance remains an option depending o

Any current/future capex/capital investment/strategic investment?

FY 27 capex planned between ₹400 to ₹500 crores. Around ₹100 crores allocated for shipyard development near Saphale, Palghar. Remaining capex focused on acquisition of dredgers and green tugs. Preference capital raised is being deployed over 12 to 16 months for expansion and development. Plans to build up to 14 vessels annually at new Saphale shipyard, targeting vessels 10m to 120m length. Significant orders being pursued, with ₹2,000 crores bid pipeline mainly domestic in FY 26-27. Capex includes development of facility to manufacture green and conventional tugs in-house. Additional funds to

Future growth expectations in sales/revenue/volumes?

Knowledge Marine & Engineering Works Limited projects a 30% year-on-year revenue growth for FY 27 and FY 28. The company has a healthy bid pipeline exceeding ₹2,000 crores, primarily domestic, with international bids starting in Q3 and Q4 of the current financial year. The current order book is approx ₹1,400 crores with multiyear visibility, including long-term contracts like green tug orders spanning 15 years. Shipbuilding revenue expected to grow year-on-year, comprising about 20% of revenue in the current year (FY 26), with 80% from dredging and chartering. The green tug construction projec

Future growth expectations in earnings/operating earnings/profits/EPS?

Management projects a revenue increase of 30% year-on-year for FY 27 and FY 28. EBITDA margins are expected to remain strong, within the 35% to 40% range, with potential improvement above 40% in Q1 FY 27. Shipbuilding segment EBITDA margins expected between 25% to 30% before subsidy, increasing to 35% to 40% after subsidy. Operating efficiencies and asset utilization are expected to improve margins further, potentially reaching 40-41% EBITDA margin. Profit after tax growth aligns with revenue and margin improvements, maintaining strong earnings quality. Continued selective bidding and focus on

Current/ Expected Orderbook/ Pending Orders?

As of FY 26, the company has a diversified order book of approximately ₹1,400 crores across dredging, charter hire, and shipbuilding. During FY 26, KMEW secured orders worth ₹1,075 crores, the highest in its history. The current order book execution timeline varies: Green Tug orders extend over 15 years, while the rest will be executed within 2 to 3 years. The company has a bid pipeline exceeding ₹2,000 crores, expected to convert into orders over the next 3 months. Of this ₹2,000 crores bid pipeline, ₹950 crores is for dredging, ₹400 crores for shipbuilding, and ₹600 crores for green tugs. Cu

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Knowledge Marine & Engineering Works LtdQ1 FY26Engineering Services

Knowledge Marine & Engineering Works Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,389P/E: 75.8Market Cap: ₹4.8K CrSector: Engineering Services

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Knowledge Marine & Engineering Works Limited projects a 30% year-on-year revenue growth for FY 27 and FY 28.
→The company has a healthy bid pipeline exceeding ₹2,000 crores, primarily domestic, with international bids starting in Q3 and Q4 of the current financial year.
→The current order book is approx ₹1,400 crores with multiyear visibility, including long-term contracts like green tug orders spanning 15 years.
→Shipbuilding revenue expected to grow year-on-year, comprising about 20% of revenue in the current year (FY 26), with 80% from dredging and chartering.
→The green tug construction project is on track, with physical construction to commence post-monsoon and completion expected by mid FY 27.
→Post-monsoon quarters (Q3 and Q4) usually see higher seasonal revenue compared to monsoon quarters (Q1 and Q2).

Margin guidance

Category 3

→Management projects a revenue increase of 30% year-on-year for FY 27 and FY 28.
→EBITDA margins are expected to remain strong, within the 35% to 40% range, with potential improvement above 40% in Q1 FY 27.
→Shipbuilding segment EBITDA margins expected between 25% to 30% before subsidy, increasing to 35% to 40% after subsidy.
→Operating efficiencies and asset utilization are expected to improve margins further, potentially reaching 40-41% EBITDA margin.
→Profit after tax growth aligns with revenue and margin improvements, maintaining strong earnings quality.
→Continued selective bidding and focus on margin-accretive projects aim to sustain long-term shareholders' value.
→Earnings per share (EPS) expected to benefit from increased operational scale and integrated maritime services expansion, though specific EPS guidance was not explicitly provided.

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Fundraise plans

Yes

→For FY 26 capex (~₹500 crores), the funding mix includes:
→ - Current cash in hand
→ - Aligned debt
→ - Potential future equity if needed, depending on market conditions and project requirements.
→Management prefers using cash and debt first before considering equity.
→Preference capital raised recently is already being deployed over 12 to 16 months for various phases of expansion, including shipyard development and dredger acquisition.
→No specific mention of immediate new fundraising plans beyond utilizing existing resources and aligned debt.
→Future equity issuance remains an option depending on project execution and market conditions but not currently planned as primary funding.

Order book

→As of FY 26, the company has a diversified order book of approximately ₹1,400 crores across dredging, charter hire, and shipbuilding.
→During FY 26, KMEW secured orders worth ₹1,075 crores, the highest in its history.
→The current order book execution timeline varies: Green Tug orders extend over 15 years, while the rest will be executed within 2 to 3 years.
→The company has a bid pipeline exceeding ₹2,000 crores, expected to convert into orders over the next 3 months.
→Of this ₹2,000 crores bid pipeline, ₹950 crores is for dredging, ₹400 crores for shipbuilding, and ₹600 crores for green tugs.
→Currently, the ₹2,000 crores bid pipeline consists entirely of domestic contracts; international shipbuilding bids will start in Q3/Q4 FY 27.

Capex plans

Yes

→FY 27 capex planned between ₹400 to ₹500 crores.
→Around ₹100 crores allocated for shipyard development near Saphale, Palghar.
→Remaining capex focused on acquisition of dredgers and green tugs.
→Preference capital raised is being deployed over 12 to 16 months for expansion and development.
→Plans to build up to 14 vessels annually at new Saphale shipyard, targeting vessels 10m to 120m length.
→Significant orders being pursued, with ₹2,000 crores bid pipeline mainly domestic in FY 26-27.
→Capex includes development of facility to manufacture green and conventional tugs in-house.
→Additional funds to be sourced from internal cash, debt, or equity if needed.
→Strategy to reduce dependency on third-party builders, improve capital efficiency, and capture higher margins.

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