Knowledge Marine pushes green tug by 1-2 years, eyes new dredgers
The company's flagship green tug project slips to 2028-2029 from mid-2027. A second fundraising of ₹150-200 cr is planned to buy two new dredgers.
— 2 earlier stories on Knowledge Marine & Engineering Works Ltd. →What's new
- Green tug project delayed from mid-2027 to 2028-2029
- Plans second fundraising of ₹150-200 cr for two new dredgers
- Safale shipyard Phase 1 on track for this year; order book at ₹1,400 cr
Why this matters
The delay pushes a key growth driver out by at least a year, but the company is doubling down on capex with new dredgers. A ₹1,400 cr order book and ₹3,000 cr bid pipeline provide near-term visibility, while the tonnage tax scheme could lift post-tax margins.
What we're watching
- Market reaction to the green tug timeline slip
- Execution on the ₹150-200 cr fundraising and dredger acquisition
- Margin accretion from the tonnage tax scheme
The full read
Knowledge Marine & Engineering Works has hit a speed bump on its green tug programme. The project, originally expected by mid-2027, is now pushed to 2028-2029, a delay of one to two years. Management didn't explain the slip, but the company is pressing ahead with expansion: it plans a second fundraising of ₹150-200 crore to buy two new dredgers for its FY27 capex. The Safale shipyard Phase 1 remains on track for completion this year, enabling two simultaneous green tug builds. That matters because the order book is already ₹1,400 crore, backed by a ₹3,000-crore bid pipeline. Revenue from existing orders is guided at ₹350 crore in the coming year. A tonnage tax scheme is expected to lift post-tax margins. The delay clouds the timeline, but the capex and pipeline suggest management is betting on long-term demand, and the market has priced in a P/E of 64.5 for that bet.
Questions answered
- What is the green tug project and why was it delayed?
- The green tug project is a key growth initiative, now delayed from mid-2027 to 2028-2029. Management did not cite a specific reason, but the company is focusing on completing Phase 1 of the Safale shipyard this year.
- How much is the second fundraising and what will it be used for?
- The company plans a second fundraising of ₹150-200 crore to acquire two new dredgers for its FY27 capex programme. This is in addition to the ₹285-crore fund deployment previously announced.
- What is the current order book and bid pipeline?
- Knowledge Marine's order book stands at ₹1,400 crore, with a bid pipeline of ₹3,000 crore. Management has guided for ₹350 crore in revenue from the existing order book in the coming year.
- How will the tonnage tax scheme affect margins?
- Management expects the tonnage tax scheme to boost post-tax margins. The scheme offers a tax regime based on ship tonnage rather than profits, which typically lowers the tax burden for shipping companies.
- What are the company's trailing financials?
- Trailing revenue grew 42.4% and PAT grew 123.9%. P/E is 64.5 with ROE of 16.1%. The latest quarter (Mar 2026) reported sales of ₹68 crore and net profit of ₹24 crore.
Knowledge Marine & Engineering Works Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on KMEW →- 19 Jun 2026 · 5:16 PM IST Knowledge Marine pushes green tug by 1-2 years, eyes new dredgers
- today Knowledge Marine lands first external shipbuilding order — ₹66 cr for hybrid ferries
- 15d ago Knowledge Marine accelerates ₹285 cr fund deployment, shelves Bahrain on geopolitics