Knowledge Marine & Engineering Works has secured its third green tug contract worth ₹279.33 crore from the Mumbai Port Authority, as reported by CNBC TV18. The contract involves chartering a 60 ton bollard pull capacity new battery operated electric green tug along with manning, operations, maintenance and complete technical management. This latest order adds to the two green tug contracts the company secured earlier, demonstrating its growing presence in the green marine infrastructure sector. The confirmed order represents approximately 327% of the company's average quarterly revenue of ₹85.35 crore, drastically increasing backlog visibility with the total disclosed order book for the last three fiscal quarters standing at ₹143.63 crore.
The contract will be supported via the company's subsidiary Knowledge Shipyard Ltd, which is also undertaking construction of the company's other green initiatives, according to the exchange filing. The simultaneous construction of multiple green tugs at a common shipbuilding platform provides the firm with opportunities to develop greater standardization, repeatability and execution efficiencies, while building specialized technical capabilities in the construction of next-generation marine assets. This latest win represents a significant acceleration in order inflow velocity, with the current order value substantially larger than typical recent orders which ranged between ₹11.41 crore and ₹66.11 crore.
The company's quarterly execution shows strong margin expansion with Q1FY27 operating profit margin reaching 63.61%, up from 27.49% in Q4FY26. Revenue for Q1FY27 rose to ₹118.60 crore with net profit of ₹62.80 crore. The balance sheet remains healthy with a current ratio of 1.22x and Total Liabilities/Equity of 0.44x. Operating cashflow was positive at ₹74.30 crore in FY26, though free cashflow remained negative at -₹44.80 crore due to high capex of ₹119.10 crore for asset deployment phases.
Shares of Knowledge Marine & Engineering Works ended the previous session 1.9% up at ₹2,882 apiece, as reported by CNBC TV18. The stock has demonstrated strong performance with a 7.1% gain in the past month and is up 49.6% this year so far. The company's annual revenue has grown from ₹205.90 crore in FY25 to ₹256.28 crore in FY26, representing a 24.5% year-on-year growth. The company operates as an integrated marine infrastructure and dredging firm, positioning it well for continued growth in the green marine sector.
