Knowledge Marine & Engineering Works Ltd Q2 FY26: ₹50 Cr Sales, ₹11 Cr PAT, ₹733 Cr Order Book, and ₹384 Cr Electric Tug Deal – The Desi Dredging Dynamo That’s Now Electrifying the Seas

1. At a Glance

Knowledge Marine & Engineering Works Ltd (KMEW) is the rare kind of engineering firm that actually floats — literally. While most smallcaps are busy “navigating” uncertain markets, these folks are navigating actual rivers, ports, and now electric seas. With a market cap of ₹3,351 crore and a current share price of ₹2,742 (as of 21 Nov 2025), KMEW is sitting pretty at a P/E of 68x — because why settle for a grounded valuation when your business runs on water?

In Q2 FY26, the company clocked ₹50.17 crore in sales and ₹11.89 crore in PAT — down 4.4% and 10.9% respectively QoQ. But, before anyone panics, note this: they have aninsane₹733 crore order book, a fresh ₹384 crore electric tug contract, and MoUs worth ₹1,560 crore waiting to turn into business. The promoter holding has dipped to 53.6%, but foreign investors (especially the “Infinity” gang) are literally pouring money in like it’s Diwali bonus season.

And with a 24.7% ROCE and 25.8% ROE, KMEW isn’t just afloat — it’s speeding past the rest of the Indian maritime sector like River Pearl on nitrous oxide.

2. Introduction

Imagine you’re running a business where your “machinery” floats, your “factories” are rivers, and your “production line” involves mud. Welcome to Knowledge Marine & Engineering Works Ltd — the Mumbai-based company turning dredging (that thing everyone ignores) into a ₹3,000 crore market story.

KMEW started in 2015, and in less than a decade, it has become the poster child for Indian marine engineering. From building tugs to dredging ports to repairing boats, they’ve turned every aquatic headache into a profitable contract. Their client list is like a who’s who of Indian ports: Haldia, Paradip, Vizag, Mumbai — you name it, they’ve billed it.

The company’s recent headlines are pure Bollywood drama. A ₹384 croreelectric green tugcontract (because even ships need EVs now), ₹1,560 crore MoUs signed during India Maritime Week, and a ₹450 crore Bahrain sand-mining project. If dredging had a red carpet, KMEW would be walking it in a hard hat and gumboots.

Still, the real story isn’t just in contracts. It’s in how this 2015-born company managed to make dredging — once considered boring port maintenance — into a high-ROE, high-growth smallcap darling.

3. Business Model – WTF Do They Even Do?

Let’s break it down. Knowledge Marine & Engineering Works Ltd basically makes money in three ways — dredging, building/owning marine crafts, and repairing marine infrastructure.

a) Dredging:Think of dredging as underwater vacuuming — removing sand, rock, or silt to keep ports and waterways deep enough for ships. It’s messy, expensive, and completely unavoidable for any port. And that’s why KMEW loves it. About94% of their FY24 revenuecomes from dredging.

b) Owning & Chartering Marine Crafts:They own an army of boats namedRiver Pearl 1 to River Pearl 12, plus a few newer stars. These vessels get hired by ports for patrolling, piloting, mooring, and tugging. Basically, if it floats and works at a port, KMEW probably rents it out.

c) Ship Building & Repairs:They also design and refit boats, tugs, and other vessels. It’s like running a car garage, except the vehicles weigh 200 tons and float on saltwater.

The New Frontier:They’re now getting intoCutter Suction Dredgers,sand mining,dam desiltation, and evenfishing harbours. Why stop at ports when you can own the riverbed too?

If you think this is a simple dredging company, think again — they’re now building the country’s first electric tug. The only thing missing is a Netflix series:“Mud, Metal & MoUs – The KMEW Story.”

4. Financials Overview

Commentary:Quarter-on-quarter, the business looks like it took a coffee break, but remember — dredging contracts are lumpy. One month you’re scooping mud, next month you’re building tugs. Despite a dip in PAT, margins stayed rock solid near 40%. And