Knowledge Marine Shares Surge 12% in Four Days Amid Market Downturn

Knowledge Marine & Engineering Works (KMEW) witnessed a remarkable run in its share price, climbing to a fresh peak of ₹3,304.60 during intra-day trading on Thursday. The stock advanced 3 percent on the Bombay Stock Exchange (BSE) despite a generally weak market environment, where the BSE Sensex fell by 1.53 percent to 71,527 points as of 2:51 PM.

This rally marked the fourth consecutive day of gains for KMEW shares, culminating in a 12 percent increase over this short span. The stock’s performance this calendar year also stands out, having surged approximately 70 percent. This is in stark contrast to the Sensex, which has declined 16 percent during the same period, highlighting KMEW’s strong momentum against broader market trends.

The catalyst behind the recent surge was the announcement made on September 19, 2026, when KMEW revealed it had secured its third Green Tug contract from the Mumbai Port Authority, one of India’s key maritime hubs. Valued at around ₹279.33 crore including taxes, this contract covers the construction and leasing of a battery-operated Green Tug for a duration of 15 years.

With this win, KMEW has solidified its foothold in the emerging Green Tug segment, having quickly accumulated three such contracts from major Indian ports. These projects are part of the company’s expanding portfolio of next-generation marine assets, which come with long-term operational commitments and align with India’s growing emphasis on sustainable maritime infrastructure.

Knowledge Marine & Engineering Works specializes in dredging, shipbuilding, and the ownership and operation of marine crafts and infrastructure. The company offers a wide range of marine engineering services including dredging at various ports and building vessels ranging from 10 to 120 meters in length. Their fleet includes pilot boats, work boats, accommodation boats, conventional and hybrid tugs, survey boats, speed patrol boats, and mooring boats.

The company serves several prestigious clients such as the Ministry of External Affairs, Kolkata Port Authority, Visakhapatnam Port Authority, Deendayal Port Authority, Paradip Port Authority, and Jawaharlal Nehru Port Authority. This diverse customer base underscores KMEW’s established position within the Indian maritime sector.

Financially, KMEW maintains strong profitability. Its profit before interest, lease rentals, depreciation and taxation (PBILDT) margin has consistently hovered around 38 percent over the past two years. Meanwhile, the profit after tax (PAT) margin has remained above 20 percent for the last five years, reflecting operational efficiency and effective cost management. According to CARE Ratings, this profitability is driven by the company’s in-house repair and maintenance capabilities and the execution of higher-margin dredging contracts, which reduce downtime and expenses while maximizing fleet utilization.

As of March 31, 2026, KMEW’s unexecuted order book stood at more than ₹1,400 crore, providing the company with clear medium-term revenue visibility. The presence of reputable counterparties and a proven track record of successful project execution helps mitigate risks related to order fulfillment. CareEdge Ratings projects that KMEW’s PBILDT margin will remain above 35 percent annually as the order book expands.

The broader domestic maritime industry is poised for substantial growth in the medium term. Government initiatives such as the Sagarmala Project, Jal Marg Vikas Project, and the Maritime Amrit Kaal Vision 2047 focus on enhancing port capacities and developing inland waterways. These efforts are expected to increase demand for dredging services and the chartering of port ancillary crafts, directly benefiting companies like KMEW.

One significant industry trend is the Green Tug Transition Program, which involves replacing conventional diesel-powered tugs with battery-operated alternatives. This shift is anticipated to generate considerable demand for new vessel construction and chartering over the coming years. Additionally, the Indian government is providing substantial subsidies to encourage domestic vessel building, along with extending the tonnage tax scheme for domestic vessel operators. These measures are expected to improve cash flows for companies engaged in this sector.

Given these favorable market dynamics and its growing portfolio of green maritime assets, Knowledge Marine & Engineering Works is well positioned to capitalize on the evolving needs of the Indian maritime industry.

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