Image Source: Business Standard
Knowledge Marine & Engineering Works Ltd (KMEW), a fast-growing player in India’s marine infrastructure and dredging services sector, has secured a new contract valued at ₹283.2 million. The award marks a strategic win for the company, reinforcing its operational footprint and revenue visibility in the maritime services domain. The contract is expected to be executed over the next 12–18 months and will contribute meaningfully to the company’s topline in FY26.
This development comes amid rising demand for coastal infrastructure upgrades, port maintenance, and inland waterway development, areas where KMEW has built a strong reputation for timely and cost-effective execution.
Key Highlights
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KMEW has received a contract worth ₹283.2 million for marine engineering services.
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The scope includes dredging, port maintenance, and underwater structural support.
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The project will be executed in phases, with completion expected by late FY26.
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The contract adds to KMEW’s robust order book, which now exceeds ₹1.2 billion.
Strategic Significance
Expanding Operational Footprint The new contract will be executed along India’s eastern coastline, where KMEW has previously undertaken successful dredging and port maintenance projects. This reinforces the company’s regional dominance and operational familiarity with tidal and sedimentary conditions.
Strengthening Core Capabilities The scope of work includes capital dredging, maintenance dredging, and underwater inspection of port assets. KMEW will deploy its proprietary dredging equipment and hydrographic survey tools to ensure precision and compliance.
Enhancing Revenue Visibility With execution spread across multiple quarters, the contract provides stable revenue inflow and supports cash flow planning. It is expected to contribute approximately ₹100–120 million to FY26 revenue, with the remainder flowing into FY27.
Financial and Operational Impact
The company is expected to maintain EBITDA margins in the range of 22–25 percent for this project, supported by in-house equipment and lean project management.
No significant capex is required, as existing assets will be redeployed, ensuring higher asset utilization and return on capital.
The contract will be funded through internal accruals and short-term working capital lines, with no dilution or debt expansion anticipated.
Industry Context
India’s maritime infrastructure sector is witnessing a revival, driven by government initiatives such as Sagarmala, Gati Shakti, and inland waterway modernization. With over 7,500 km of coastline and 12 major ports, the demand for dredging, port maintenance, and marine engineering services is expected to grow at a CAGR of 8–10 percent over the next five years.
KMEW’s focus on niche segments like underwater inspection, hydrographic surveys, and small-port dredging positions it well to capture this growth, especially as larger players focus on deep-sea and mega-port projects.
Market Sentiment
KMEW’s stock traded flat post-announcement, reflecting cautious optimism amid broader market volatility.
Analysts view the contract as a positive for earnings visibility and operational leverage, though they await further clarity on execution timelines and client details.
The company’s market capitalization stands near ₹3.2 billion, with a one-year return of over 45 percent.
Outlook
The ₹283.2 million contract win marks another milestone in Knowledge Marine & Engineering Works’ growth journey. With a strong order book, disciplined execution, and expanding capabilities, the company is well-positioned to deliver consistent performance in FY26 and beyond.
As India’s coastal and inland waterway infrastructure continues to evolve, KMEW’s strategic focus on specialized marine services and asset-light operations will remain key drivers of long-term value creation.
Source: Moneycontrol, August 16, 2025
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