Knowledge Marine Raises FY27 Growth Guidance to 80%

KMEW has significantly upgraded its FY27 revenue growth outlook, reflecting its expanding order pipeline and increasing scale across dredging, chartering and shipbuilding operations. Management has raised its revenue growth guidance to approximately 80%, while indicating that EBITDA margins could remain above 40–45% as the business scales. H1 FY27 revenue from operations stood at ₹186.21 crore, registering 89% year-on-year growth. EBITDA increased 155% to ₹101.71 crore, with an EBITDA margin of 55%. Profit After Tax surged 267% to ₹84.27 crore, reflecting robust operating performance. For Q2 FY27, revenue from operations increased 41.1% year-on-year to ₹70.81 crore, while PAT rose approximately 81% to ₹21.53 crore. The sequential decline from Q1 levels reflects the seasonal nature of marine and dredging operations, making the half-year performance an important indicator of business momentum. KMEW’s order book stood at approximately ₹1,732 crore, supported by contracts such as the ₹303.17 crore New Mangalore Port maintenance dredging project. The company is also expanding its fleet and shipbuilding capabilities, with management targeting a sustained order book above ₹2,000 crore. However, investors should closely monitor execution of large contracts, working capital requirements, capital expenditure, tender conversions and the sustainability of elevated margins. The upgraded guidance is management’s outlook and remains dependent on successful execution. Learning Takeaway: For marine infrastructure companies, higher revenue guidance and a strong order book can improve growth visibility. Investors should also assess contract execution, fleet utilisation, capital intensity, cash-flow conversion and margin sustainability before drawing conclusions about long-term earnings potential. Disclosure: This post is for educational purposes only and does not constitute investment advice. Any holdings or conflicts of interest should be disclosed separately.