Seamec Limited Q4 FY26: Record FY26, but operational risk is real

Seamec Limited closed FY26 with its highest ever annual revenue and profitability, driven by higher fleet deployment and strong execution across domestic and international assignments. On a consolidated basis, FY26 revenue rose to 1000.0 crore from 682.2 crore in FY25, while EBITDA expanded to 447.2 crore from 244.1 crore. Profit after tax increased to 253.5 crore from 87.9 crore.

Q4 FY26 also reflected the same momentum. Consolidated revenue grew 58% year on year to 330.4 crore, EBITDA rose 78% to 162.4 crore, and PAT stood at 103.7 crore versus 41.0 crore in Q4 FY25. Management attributed this performance to strong vessel deployment, better utilisation, and efficient project execution.

At the standalone level, Q4 FY26 revenue was 316.6 crore and FY26 revenue was 947.5 crore. Standalone profitability improved sharply too, although the quarter commentary also referenced impairment of investment in the UK subsidiary impacting standalone EBITDA.

What drove the numbers

Seamec’s investor presentation linked the topline growth to higher deployment of key vessels including Seamec III, Seamec Swordfish and the newly acquired Seamec Agastya. The company also executed offshore projects such as the NLM9 platform revamping assignment for ONGC, which management described as a turnkey completion using MV GOODMAN.

A key feature of the company’s operating model is contracted deployment. Management explained that diving support vessels are primarily deployed on long-term contracts, typically three to five years, where charter rates remain fixed through the tenure. Spot contracts exist but are not the dominant structure.

The company also highlighted contract and operational milestones during FY26. SEAMEC II’s contract with ONGC was extended for a firm tenure through August 2026, and the vessel resumed operations in March 2026 after the Flag State Inspection. SEAMEC Diamond resumed operations with ONGC after completing its statutory dry dock.

Financial summary (Consolidated)

The presentation also disclosed balance sheet and return metrics. On a consolidated basis, gross debt was stated at 328 crore and net debt at negative 227 crore, alongside ROCE of 18% and ROE of 19%. On a standalone basis, gross debt was stated at 273 crore and net debt at negative 179 crore.

Business updates that shape FY27 visibility

The most material visibility item discussed in the call was the O&M contract award for ONGC-owned MSV Samudra Prabha and MSV Samudra Sevak for 2026 to 2028, in consortium with Supreme Hydro Pvt. Ltd. Management clarified that Samudra Sevak has been taken over and has started working, while Samudra Prabha was taken over in May 2026 and was expected to start earning day rate by early June. They also stated Supreme Hydro’s consortium share is around 10%, with Supreme providing technical know-how, manuals and some personnel.

Management also spoke about fleet expansion and capital allocation. They reiterated that Seamec Anant is a known acquisition plan and indicated a scheduled capex of roughly USD 70 million for this vessel. However, they also pointed to operational constraints and timing risks, noting that with Paladin currently not operational, additional vessel movement could cause off-hire that ONGC may not permit. They indicated that Anant may take about one more quarter to join the fleet.

At the same time, the company signalled a sharper focus on its core offshore services. In response to a question on subsidiary contributions, management said there was no major contribution from subsidiaries in FY26, that Dubai operations have been pruned, and that after having sold a vessel earlier, another bulk vessel could be sold depending on market conditions. This is relevant because it suggests Seamec is prioritising capital and management bandwidth towards DSV and offshore execution rather than expanding the bulk carrier footprint.

Guidance: steady growth with margin discipline, but watch off-hire risk

For FY27, management guidance was explicit and conservative relative to investor enthusiasm on the call. They guided about 15% growth in both topline and bottom line, and guided EBITDA margins in the range of 40% to 42% on an annualised basis. They also noted quarterly margins can vary by 2% to 3% depending on utilisation, dry docks and contract mix.

The most immediate operational risk discussed was geopolitical disruption. Seamec Paladin sailed to Dubai for dry dock and remains stranded due to the ongoing war in West Asia and uncertainty around the Strait of Hormuz. Management stated that Paladin did not operate in Q4 and that even in April and May the company was not seeing revenue contribution from the vessel.

Dry dock scheduling is another driver of variability. Management stated that three of its owned vessels are due for dry docking during the year, and that two ONGC-owned vessels under the new O&M contracts will also go for dry dock in the year. They also clarified a key revenue sensitivity: off-hire days are not paid.

Takeaways

Seamec’s FY26 performance demonstrates what a high utilisation fleet and strong execution can do in offshore services. The company has put up record revenue and profitability, supported by long-term contracts, improved deployment, and incremental visibility from the ONGC O&M awards running up to March 31, 2028.

But the call also made it clear that the operating environment can introduce sharp swings. Geopolitical disruption has already created a revenue gap via the Paladin situation, and dry dock related off-hire remains an unavoidable reality for vessel operators. With guidance pegged at 15% growth and 40% to 42% EBITDA margins, management’s stance suggests an intent to grow steadily without overextending the balance sheet in a high capex industry.