Seamec wins US$26.14 million ONGC project scope

Seamec Limited (NSE: SEAMECLTD) SEAMECLTD has received a Letter of Award from Larsen & Toubro for subsea installation work under ONGC's PRP-X pipeline replacement project. Seamec's own scope is valued at US$26.14 million, approximately ₹245.8 crore, excluding GST. The work is scheduled for completion by May 2027. This is a meaningful order, equivalent to around 25.8% of FY26 consolidated revenue. It strengthens Seamec's presence in offshore oil and gas infrastructure projects and adds revenue visibility over the coming months. The financial contribution will depend on execution and project margins. The company has not disclosed the expected EBITDA, PAT or cash-flow contribution. Investors should also remember that Q2 FY27's ₹50.5 crore consolidated PAT included a one-time ₹42.43 crore gain from the sale of Seamec Gallant. The key concern is execution alongside capital requirements. Seamec is expanding its vessel fleet and management has discussed substantial future capex and borrowing. The contract's payment terms, working capital needs and allocation of responsibilities within the consortium are not yet known. What to watch 1. Project commencement and execution progress towards May 2027. 2. Consolidated operating margins and operating cash flow over the next two quarters. 3. Debt levels and capital expenditure as the company expands its fleet. Final stance: Potential is looking good.