KMEW’s H1 FY27 PAT surged 267% as revenue rose 89%

Knowledge Marine & Engineering Works Limited reported H1 FY27 revenue from operations of Rs 186.2197 crore, up 89% from H1 FY26, while profit after tax rose 267% to Rs 84.2799 crore and the PAT margin reached 45%. The half-year ended September 30, 2026, also included Rs 51.49 crore of shipbuilding revenue.

How did KMEW perform in H1 FY27?

KMEW increased revenue from operations to Rs 186.2197 crore in H1 FY27 from Rs 98.648 crore in H1 FY26, an 89% increase. The H1 FY27 revenue total was about 73% of FY26 revenue of Rs 256.2801 crore, despite covering only the first half of FY27.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 155% year on year to Rs 101.7081 crore from Rs 39.9146 crore. Profit after tax, or PAT, increased to Rs 84.2799 crore from Rs 22.9819 crore, a 267% increase, while earnings per share rose to Rs 6.54 from Rs 2.08.

KMEW’s H1 FY27 PAT of Rs 84.2799 crore exceeded its reported FY26 PAT of Rs 79.1082 crore by Rs 5.1717 crore. H1 FY27 EBITDA of Rs 101.7081 crore also surpassed FY26 EBITDA of Rs 96.7481 crore, whereas H1 FY26 EBITDA represented about 41% of that full-year figure.

What drove KMEW’s H1 FY27 revenue mix?

KMEW generated Rs 123.83 crore from dredging in H1 FY27, accounting for 67% of operations revenue. Shipbuilding contributed Rs 51.49 crore, or 28%, and charter and hire generated Rs 10.73 crore, or 5%, making dredging the largest reported revenue stream.

Shipbuilding’s Rs 51.49 crore contribution was nearly five times charter and hire revenue of Rs 10.73 crore during H1 FY27. The disclosed vessel-building programme includes 10 accommodation boats, 10 work boats, four cutter suction dredgers, three green tugs, 10 electric ferries and one speed-cum-chase boat.

The 28% shipbuilding share means KMEW’s reported revenue was not solely dependent on dredging during the half year. Dredging plus shipbuilding represented 95% of the revenue mix reported by KMEW, while charter and hire supplied the remaining 5%.

Why did KMEW’s margins increase in H1 FY27?

KMEW’s EBITDA margin increased to 55% in H1 FY27 from 40% in H1 FY26, while its PAT margin increased to 45% from 23%. EBITDA grew faster than revenue, rising 155% versus the 89% revenue increase, and PAT growth of 267% was faster still.

Material consumed rose to Rs 66.7383 crore in H1 FY27 from Rs 48.1568 crore a year earlier, while employee expenses increased to Rs 7.9593 crore from Rs 4.1729 crore. Other expenses were Rs 9.814 crore, compared with Rs 6.4037 crore in H1 FY26; together, these three cost categories rose by Rs 25.7782 crore against the Rs 87.5717 crore increase in revenue.

Below EBITDA, depreciation rose to Rs 12.4461 crore from Rs 7.1168 crore and finance cost increased to Rs 8.2257 crore from Rs 7.4534 crore. However, other income increased to Rs 13.6509 crore from Rs 1.7717 crore, and profit before tax rose to Rs 94.6872 crore from Rs 27.1161 crore; the presentation reported no exceptional items in either half-year.

What do KMEW’s balance sheet and cash flows show?

KMEW reported total assets of Rs 1,137.3555 crore as of September 30, 2026, comprising Rs 683.9158 crore of non-current assets and Rs 453.4397 crore of current assets. Capital work-in-progress was Rs 344.4245 crore and property, plant and equipment was Rs 269.8041 crore, together representing Rs 614.2286 crore of the asset base.

Total equity was Rs 829.0165 crore at September 30, 2026, while total liabilities were Rs 308.339 crore. Borrowings comprised Rs 194.3855 crore of non-current borrowings and Rs 77.4109 crore of current borrowings, for total borrowings of Rs 271.7964 crore.

KMEW generated Rs 44.1191 crore of net cash from operating activities in the half year. Investing activities used Rs 212.5299 crore and financing activities provided Rs 213.4108 crore, resulting in a Rs 45 crore net increase in cash and cash equivalents to Rs 118.6191 crore at period end.

Working-capital changes reduced operating cash flow by Rs 55.0567 crore, even as profit before tax was Rs 94.6872 crore and operating profit before working-capital changes was Rs 102.3996 crore. Separately, trade receivables were Rs 73.5342 crore and bank balances other than cash equivalents were Rs 186.9036 crore at September 30, 2026.

What is KMEW building for future operations?

KMEW’s Palghar shipyard layout includes two slipways, one measuring 150 metres by 30 metres and another measuring 310 metres by 30 metres. The layout also identifies a 100-metre by 30-metre block-erection berth and a 100-metre by 8-metre jetty, with the site described as less than 2 kilometres from the open sea.

The planned facility also includes two 75-metre by 30-metre fabrication shops, a 60-metre by 20-metre plate-preparation area and a 20-metre by 37.5-metre aluminium and outfitting shop. These disclosed dimensions are relevant because shipbuilding already supplied Rs 51.49 crore, or 28%, of H1 FY27 operations revenue.

Conclusion

KMEW’s H1 FY27 figures show that revenue growth to Rs 186.2197 crore was accompanied by faster expansion in EBITDA and PAT, taking reported margins to 55% and 45%, respectively. Dredging remained the principal contributor at 67% of revenue, but shipbuilding supplied a material 28%, linking the half-year result to a second major operating stream.

The next disclosed item to watch is the development of the Palghar shipyard, including its 310-metre slipway, 100-metre block-erection berth and fabrication facilities. Investors can also track whether the Rs 344.4245 crore capital work-in-progress converts into operating assets while KMEW manages the Rs 55.0567 crore working-capital cash outflow recorded in H1 FY27.