GE Shipping: Revenue Up 47%, Net Profit Up 118%

GESHIP The Great Eastern Shipping Company operates tankers and dry bulk carriers for transporting crude oil, petroleum products and dry commodities. It had 42 vessels with fleet capacity of 3.38 million dead weight tonnes as of November 2026, including 26 tankers. Capacity utilisation is close to 100%. What happened: In Q2FY27, consolidated revenue grew 47% year on year to Rs 1,824.4 crore. Net profit grew 118.4% to Rs 1,269.2 crore. Other income rose to Rs 409.2 crore from Rs 140 crore, largely from profit on sale of ships. Average freight rate for crude carriers was $73,322 per day, up from $29,974 a year earlier. The company declared an interim dividend of Rs 14.4 per share, maintaining it at the highest-ever level. Why it matters: Tanker freight rates surged 4 to 5 times year on year in Q2FY27, driven by US-Iran tensions in the Strait of Hormuz. VLCC spot rates averaged $296,940 per day, up from $51,465. Nearly 20% of global VLCC capacity is over 20 years old and is not permitted to sail, tightening supply. ROE is 15.9%, ahead of Shipping Corporation of India at 15%. What I am watching: The US mid-term elections raised prospects of a US-Iran peace accord, which could cool tanker rates significantly. The buyback programme, capped at Rs 1,530 per share, is expected to close on 11 December 2026. Rs 627.4 crore has been bought back so far of the Rs 900 crore approved. My stance: GE Shipping trades at 4.7 times consolidated P/E against Shipping Corporation of India at 6 times. The valuation looks cheap only if freight rates hold. A Hormuz de-escalation is the single biggest risk to earnings, and that risk is now live. I do not hold a position in GE Shipping at the time of writing. This is not investment advice.