SEAMEC Q4 FY26: Record Year Built on Vessel Deployment and Execution

Seamec Limited closed Q4 FY26 with revenue of Rs. 316.6 crore on a standalone basis, up 53 percent year on year, as the fleet stayed busier and a newer vessel contributed through the quarter. EBITDA came in at Rs. 138.4 crore, up 32 percent year on year, and profit after tax rose 48 percent to Rs. 87.2 crore.

The bigger story sits in the full year. FY26 was the company’s highest-ever annual revenue and profitability, driven by strong execution, higher fleet deployment, and better utilisation across domestic and international markets. Standalone revenue rose 44 percent to Rs. 947.5 crore. EBITDA increased 54 percent to Rs. 406.9 crore, and profit after tax more than doubled to Rs. 242.4 crore.

On a consolidated basis, the quarter looked even stronger on margins. Q4 FY26 revenue was Rs. 330.4 crore, up 58 percent year on year. EBITDA rose 78 percent to Rs. 162.4 crore, and profit after tax increased 153 percent to Rs. 103.7 crore. For FY26, consolidated revenue reached Rs. 1,000.0 crore, EBITDA rose 83 percent to Rs. 447.2 crore, and profit after tax climbed 188 percent to Rs. 253.5 crore.

The quarter: stable revenue, softer standalone margin, stronger consolidated profitability

Seamec’s Q4 standalone revenue was flat sequentially at Rs. 316.6 crore, but the year-on-year step up was meaningful. Management attributed this to higher deployment of Seamec III, Seamec Swordfish, and the newly acquired vessel Seamec Agastya. This was partly offset by lower deployment of the Glorious barge and the dry dock of Seamec Paladin in Q4.

Despite the revenue strength, standalone EBITDA fell 4 percent quarter on quarter to Rs. 138.4 crore, and EBITDA margin moderated to 43.7 percent from 45.4 percent in Q3 FY26 and 50.5 percent in Q4 FY25. The presentation points to an impairment of investment in the UK subsidiary as a factor affecting profitability, while also noting that Swordfish costs were lower in Q4 because Q3 had included a provision back charge.

At the consolidated level, Q4 performance shows a clearer improvement. EBITDA rose 8 percent quarter on quarter to Rs. 162.4 crore, and margin expanded to 49.2 percent. Management noted that impairment was eliminated at the consolidated level, and that incremental revenue from the Dubai subsidiary supported year-on-year EBITDA growth.

FY26: highest-ever year, supported by contract profile and utilisation

The FY26 numbers confirm that Seamec is benefiting from a stronger operating cycle and better utilisation of its offshore assets. Standalone revenue increased to Rs. 947.5 crore and EBITDA to Rs. 406.9 crore, taking margin to 42.9 percent. Profit before exceptional items nearly doubled to Rs. 258.6 crore, and profit after tax rose 110 percent to Rs. 242.4 crore.

Management’s explanation is operational and specific. Higher deployment of Seamec III on a lump sum contract basis contributed across the year, and the NGLM 9 platform revamp project added to activity levels. These positives were partly offset by dry docks, including Seamec II in Q2 FY26 and Seamec Paladin in Q4 FY26, as well as the Glorious barge being in modification.

Consolidated FY26 performance was even more pronounced. Revenue rose 47 percent to Rs. 1,000.0 crore, while EBITDA expanded 83 percent to Rs. 447.2 crore. Consolidated EBITDA margin improved to 44.7 percent from 35.8 percent in FY25, reflecting both higher deployment and improved subsidiary performance. Profit after tax rose to Rs. 253.5 crore.

The balance sheet metrics, as presented, point to conservative leverage and strong cash generation through the year. Standalone gross debt was Rs. 273 crore, net debt was negative Rs. 179 crore, and net debt to EBITDA was negative 0.44x. Consolidated gross debt was Rs. 328 crore, net debt was negative Rs. 227 crore, and net debt to EBITDA was negative 0.51x. The company reported ROCE of 18 percent on both standalone and consolidated metrics, and ROE of 20 percent standalone and 19 percent consolidated.

Operational update: ONGC visibility, fleet availability, and a geopolitical disruption

Operationally, Seamec’s update focuses on readiness and contract visibility.

ONGC extended the contract period for Seamec II for a firm tenure through August 2026. After completing the regulatory Flag State Inspection, the vessel resumed operations with ONGC in March 2026. Seamec Diamond also resumed operations with ONGC after completing its statutory dry dock. These two items matter because they reduce idle risk and help explain the stronger FY26 deployment profile.

The company also received a Notification of Award for providing operations and maintenance services for two ONGC-owned MSVs, Samudra Prabha and Samudra Sevak, for the period 2026 to 2028, in consortium with Supreme Hydro Pvt. Ltd. While the presentation does not quantify the value, the tenor itself adds multi-year visibility.

The key disruption highlighted is Seamec Paladin’s dry dock in Dubai. The vessel sailed to Dubai for dry dock completion but remains stranded in the yard due to the ongoing war in West Asia, with movement linked to the reopening of the Strait of Hormuz for safe navigation. This is a reminder that offshore operations can be affected by non-commercial variables. Investors will likely watch for how quickly this constraint clears and what it means for near-term deployment.

Strategy and positioning: a fleet-led model in an expanding offshore market

Seamec operates as a vessel-led offshore services company, with a focus on complex subsea and offshore support work. The presentation frames the company as a provider of diving support vessels and offshore support vessels, with a fleet comprising 6 DSVs, 1 OSV, and 1 accommodation barge. The DSV portfolio includes Seamec II, Seamec III, Seamec Princess, Seamec Paladin, Seamec Swordfish, and Seamec Agastya. The OSV addition highlighted is Seamec Diamond, built in 2011 and procured in 2023.

The company positions its service capabilities around inspection, maintenance and repair of subsea assets, ROV support using dynamic positioning, subsea construction work such as pipelaying and riser installation, and safety-related services such as pollution control and rescue support. This breadth is important because vessel utilisation depends on being relevant across multiple offshore work scopes, not just one project category.

Beyond offshore shipping, the group structure includes a bulk carrier division operated through subsidiaries, with vessels such as Seamec Gallant and Asian Pearl. The presentation also notes a tunnel construction joint venture that undertook NATM tunnel construction for a high-speed rail project in Gaya, Gujarat, but Seamec Nirman Infra Limited withdrew from the project with effect from July due to unavoidable circumstances, after completing 80 percent of the project.

The market context provided is supportive. The presentation cites a future outlook for India’s oil and gas sector that includes rising consumption and capacity additions, along with an offshore services market expected to expand strongly through FY2031. It also highlights ONGC’s role as a key offshore player, including its participation in exploration blocks under OALP-VIII. Seamec’s client list includes ONGC and other regional and international names, which aligns with the company’s statement that FY26 growth was driven across domestic and international markets.

From a financial quality perspective, FY26’s margin profile and negative net debt metrics suggest strong operating cash generation. But margins are also sensitive to fleet mix, dry docks, wage costs, and impairment effects, which the company itself flagged across quarters. The most useful way to interpret FY26 may be as a year where multiple vessels were consistently deployed, while operational setbacks were managed without derailing earnings momentum.

What to track next

Seamec’s FY26 results show what the business can deliver when the fleet is available and contracted well: record revenue, strong profitability, and conservative leverage. The quarter reinforced that the core driver is vessel deployment, and that utilisation swings can matter more than headline revenue stability.

The near-term watchlist is clear from the company’s own updates. Execution on ONGC-linked work, including the extended Seamec II contract through August 2026 and the 2026 to 2028 O and M award, should support visibility. Resolution of the Seamec Paladin dry dock situation will be important for restoring full fleet flexibility. And investors will likely keep an eye on how subsidiaries contribute at the consolidated level, given the improvement highlighted in FY26.

The theme across the presentation is disciplined execution backed by a stronger operating cycle. If deployment remains high and operational disruptions stay contained, Seamec enters FY27 from a position of financial strength and better earnings visibility than the prior year.