Knowledge Marine & Engineering Works (KMEW) shares surged 12% in four consecutive trading sessions, hitting a new high of ₹3,304.60 on Thursday despite broader market weakness. According to Business Standard, the stock has zoomed 70% in calendar year 2026 against a 16% decline in the BSE Sensex. The rally was triggered by KMEW securing its third Green Tug contract from Mumbai Port Authority on September 19, 2026, valued at approximately ₹279.33 crore (including taxes). The contract involves construction and hiring of a battery-operated Green Tug for a 15-year tenure, further strengthening the company's presence in India's emerging Green Tug segment.
According to The Financial Express, KMEW delivered robust Q1 FY27 results with consolidated revenue rising to ₹115.41 crore, up 138.2% YoY and 70.7% QoQ. The company's consolidated profit after tax increased to ₹62.75 crore from ₹11.08 crore in Q1 FY26. As per Business Standard, the company maintains a multi-million order book from esteemed clients including Ministry of External Affairs, Kolkata Port Authority, Visakhapatnam Port Authority, Deendayal Port Authority, Paradip Port Authority and Jawaharlal Nehru Port Authority. As on March 31, 2026, the total unexecuted order book position stood at over ₹1,400 crore, providing medium-term revenue visibility with strong counterparties and healthy execution track record.
The Indian government has approved a comprehensive ₹69,725-crore shipbuilding package to expand the country's maritime capabilities. According to reports from The Financial Express, this package includes ₹24,736 crore for the Shipbuilding Financial Assistance Scheme, ₹25,000 crore for the Maritime Development Fund, and ₹19,989 crore for the Shipbuilding Development Scheme. The latter aims to expand India's shipbuilding capacity to 4.5 million gross tonnes annually. Under the Shipbuilding Financial Assistance Policy, 288 contracts covering 456 vessels worth ₹19,748 crore had received in-principle approval by March 2026, with tugs specifically included among eligible vessel categories.
According to The Financial Express, India's ports handled more than 1.59 billion tonnes of cargo in FY2024-25, with major ports alone handling 915.17 MT in FY26, registering 7.06% year-on-year growth. The policy backdrop has changed materially with the new shipbuilding package, making tugs, workboats and pilot boats directly tied to vessel handling, harbour operations, pilotage and offshore support. The Green Tug Transition Programme (GTTP) envisages at least 30% of the operational tug fleet at major ports becoming ASTDS-GTTP compliant by the end of 2030. As reported by Business Standard, the domestic maritime industry is expected to record healthy growth supported by Government initiatives including Sagarmala Project, Jal Marg Vikas Project, and Maritime Amrit Kaal Vision 2047.
According to CARE Ratings, KMEW's high profitability is attributable to in-house repair, maintenance capabilities, and execution of higher margin dredging contracts. The company maintains PBILDT margin sustaining 38% in the last two years and profit after tax (PAT) margin over 20% in the last five years. CARE Edge Ratings expects PBILDT margin to sustain over 35% p.a. with increasing order book. The rating agency expects KMEW to benefit from favourable industry growth prospects, with the Green Tug Transition Programme expected to generate significant vessel construction and chartering demand over coming years.
