Dredging Corporation returns to Rs 7.31 crore quarterly profit

Dredging Corporation of India Limited reported profit after tax of Rs 7.31 crore for the quarter ended September 30, 2026, reversing a Rs 34.18 crore loss a year earlier, as total expenses fell by Rs 41.87 crore while revenue from operations was broadly unchanged at Rs 211.28 crore.

Why did Dredging Corporation return to profit in September?

Dredging Corporation returned to profit because quarterly total expenses declined to Rs 204.32 crore from Rs 246.19 crore in the quarter ended September 30, 2025. Revenue from operations was Rs 211.28 crore, marginally below Rs 211.79 crore a year earlier, while other income fell to Rs 54.95 lakh from Rs 1.34 crore. Total income consequently declined by Rs 1.30 crore to Rs 211.83 crore.

The lower cost base moved profit before tax to Rs 7.51 crore from a loss before tax of Rs 33.07 crore in the comparable quarter. Current tax expense was Rs 19.78 lakh, against Rs 1.11 crore a year earlier, leaving profit after tax of Rs 7.31 crore. The results reported no exceptional items in either September 2026 or September 2025, meaning the change was recorded before exceptional gains or charges.

Dredging Corporation's September profit was below the Rs 11.24 crore earned in the quarter ended June 30, 2026. Revenue from operations declined sequentially from Rs 355.43 crore in June to Rs 211.28 crore in September, while total expenses declined from Rs 344.97 crore to Rs 204.32 crore. Basic and diluted earnings per share were Rs 2.61 in September, compared with Rs 4.01 in June and a loss per share of Rs 12.21 in September 2025.

Which Dredging Corporation costs changed in the quarter?

Dredging Corporation's largest reported year-on-year reduction was in sub-contract expenses, which fell to Rs 3.66 crore from Rs 43.11 crore in the September 2025 quarter. Finance costs declined to Rs 8.66 crore from Rs 22.82 crore, while depreciation and amortisation fell to Rs 25.53 crore from Rs 36.53 crore. Employee benefit expense also decreased to Rs 18.41 crore from Rs 27.92 crore.

Those cost reductions were partly offset by other expenses, which increased to Rs 148.07 crore from Rs 115.81 crore. The filing identifies dredging as Dredging Corporation's sole reportable segment under Indian Accounting Standard 108, or Ind AS 108. It therefore does not provide separate revenue or expense information for individual dredging activities.

Dredging Corporation recorded no other comprehensive income in the September 2026 quarter, the June 2026 quarter, or the September 2025 quarter. Total comprehensive income therefore matched September-quarter profit after tax at Rs 7.31 crore. Paid-up equity share capital remained Rs 28 crore in each of the three quarterly periods, with a face value of Rs 10 per equity share.

How did Dredging Corporation perform in the first half?

Dredging Corporation reported profit after tax of Rs 18.54 crore for the half year ended September 30, 2026, reversing a loss of Rs 57.51 crore in the corresponding half of 2025. Revenue from operations rose to Rs 566.71 crore from Rs 454.03 crore, an increase of Rs 112.68 crore. Total income increased to Rs 568.29 crore from Rs 456.43 crore.

First-half expenses rose to Rs 549.29 crore from Rs 512.70 crore, an increase of Rs 36.59 crore that was lower than the Rs 111.86 crore increase in total income. Profit before tax was Rs 19 crore, against a loss before tax of Rs 56.26 crore a year earlier. Current tax was Rs 45.79 lakh, compared with Rs 1.25 crore, producing the reported half-year profit.

The half-year comparison included finance costs of Rs 18.53 crore, down from Rs 54.21 crore, and depreciation and amortisation of Rs 67.06 crore, down from Rs 76.31 crore. Employee benefit expense fell to Rs 48.70 crore from Rs 53.54 crore. In contrast, sub-contract expenses increased to Rs 129.21 crore from Rs 83.95 crore and other expenses rose to Rs 285.78 crore from Rs 244.69 crore.

Basic and diluted earnings per share for the half year were Rs 6.62, compared with a loss per share of Rs 20.54 in the corresponding prior-year period. The half-year profit also exceeded the Rs 4.75 crore profit after tax recorded for the year ended March 31, 2026. Dredging Corporation said its statutory auditors issued an unmodified opinion on their limited review of the September 2026 standalone results.

What changed in Dredging Corporation's balance sheet and cash flow?

Dredging Corporation's total assets were Rs 2,985.31 crore at September 30, 2026, compared with Rs 3,065.71 crore at March 31, 2026. Non-current assets increased to Rs 2,133.37 crore from Rs 2,101.86 crore, including property, plant and equipment of Rs 1,232.38 crore and capital work-in-progress of Rs 900.47 crore. Current assets declined to Rs 851.94 crore from Rs 963.85 crore.

Cash and cash equivalents stood at Rs 82.48 crore at September 30, compared with Rs 142.88 crore at March 31. The half-year cash-flow statement showed net cash used in operating activities of Rs 87.47 crore and net cash used in investing activities of Rs 97.07 crore, including Rs 98.57 crore of payments for property, plant and equipment. Net cash generated from financing activities was Rs 124.15 crore, following Rs 142.38 crore of proceeds from borrowings and Rs 18.23 crore of interest paid.

Total equity increased to Rs 1,248.90 crore from Rs 1,230.35 crore, including other equity of Rs 1,220.90 crore at September 30. Long-term borrowings declined to Rs 687.42 crore from Rs 815.15 crore, while current borrowings increased to Rs 538.13 crore from Rs 272.34 crore. The debt-equity ratio was 0.98:1 at September 30, compared with 0.88:1 at March 31, and the current ratio was 0.84:1 compared with 0.96:1.

Conclusion

Dredging Corporation moved from a September-quarter loss of Rs 34.18 crore to a Rs 7.31 crore profit despite operating revenue declining by Rs 51 lakh year on year. The half-year result similarly shifted to a Rs 18.54 crore profit from a Rs 57.51 crore loss, with lower finance costs, depreciation and selected operating costs outweighing higher other expenses.

The unresolved balance-sheet and cash-flow points are the Rs 87.47 crore operating cash outflow in the half year and the rise of Rs 265.79 crore in current borrowings between March 31 and September 30, 2026. Dredging Corporation also reported capital work-in-progress of Rs 900.47 crore at September 30, which remained above the Rs 894.47 crore reported at March 31.