1. At a Glance – Ek Nazar Mein Kya Scene Hai?
Sadhav Shipping Ltd is that underrated coastal warrior quietly moving barges, tugs, and offshore vessels while Dalal Street is busy flirting with loss-making startups. With a market cap of ~₹142 crore, a current price of ₹99, and a stock P/E of ~12.5, this SME-listed shipping company looks deceptively boring—until you open the financials. Operating margins of ~35%, a return on equity of ~12.6%, and a ₹292 crore order book (~3x FY25 revenue) tell a very different story.
But wait—returns haven’t been kind recently. The stock is down ~10% in 3 months and ~34% over 1 year, proving once again that markets don’t reward patience, they test it. Latest H1 FY26 results show revenue of ~₹35 crore and PAT of ~₹4.17 crore, slightly lower sequentially, but still solid for a company operating floating steel assets that literally burn diesel for a living.
Debt stands tall at ~₹97 crore, promoter holding is a comforting ~69.4% (zero pledge), and the fleet—20 vessels strong—is younger than many Bollywood actors’ careers. Sounds interesting already? Good. Let’s dive deeper before the tide changes.
2. Introduction – Yeh Shipping Company Hai Ya Floating ATM?
Shipping companies usually fall into two categories:
- Global giants drowning in cyclicality
- Small players drowning in debt
Sadhav Shipping seems to be swimming somewhere in between—sometimes freestyle, sometimes dog paddle, but still afloat. Incorporated in 1996, this isn’t a fly-by-night SME IPO story. The company has survived multiple oil cycles, port reforms, PSU tender drama, and the legendary “payment delay but tender bonus” culture of Indian maritime services.
Its bread and butter comes from offshore logistics, port services, and oil spill response—three businesses that don’t trend on Twitter but keep the country running when things go wrong. ONGC alone contributes nearly 49% of revenue, which is both comforting (PSU money eventually comes) and terrifying (client concentration risk says hello).
The company listed on NSE Emerge in March 2024, raised equity, added vessels, increased borrowings, and expanded aggressively. The balance sheet has swollen, cash flows have swung, and profitability has improved—classic “growth phase chaos”.
So the real question is:
Is Sadhav Shipping building a
durable maritime franchise—or just stacking vessels like Jenga blocks and hoping the oil cycle behaves?
3. Business Model – WTF Do They Even Do?
Imagine being the Uber of the sea—but instead of drunk riders, you carry oil rigs, port cargo, and environmental cleanup equipment. That’s Sadhav Shipping in simple English.
The company owns and operates barges, tugs, and offshore support vessels (OSVs). These vessels are chartered out on long-term and short-term contracts to clients like ONGC, ports, PSU oil companies, and large industrial users.
The revenue engines:
- Offshore Supply Vessels (63% of FY25 revenue):
These are high-spec vessels, some with Dynamic Positioning (DP) capability, used for offshore oil & gas operations. High utilisation, decent margins, but heavily dependent on energy capex cycles. - Port Services (25%):
Tugging, port assistance, logistics—steady but competitive. Think stable cash flows with moderate margins. - Oil Spill Response (12%):
Low frequency, high importance business. Not glamorous, but when disaster strikes, everyone calls you first.
The fleet’s average age of 10–12 years is a hidden advantage. Younger vessels mean lower maintenance costs, better fuel efficiency, and premium charter rates—basically less “repair bill trauma”.
Still, this is a capital-intensive business. Every new vessel means more debt, more depreciation, and more prayers to the utilisation gods.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Result Type Lock 🔒
The financial section clearly states “Half Yearly Results”.
👉 Therefore, H1 results are treated as HALF-YEARLY RESULTS.
👉 Annualised EPS = Latest EPS
2 thoughts on “Sadhav Shipping Ltd H1 FY26 – ₹279 Cr Assets, ₹97 Cr Debt, 35% OPM & a ₹292 Cr Order Book Sailing Through Choppy Seas”
They’ve claimed to start shipbuilding and Infrastructure with Odisha Government and Petronet Group but they’ve a group company with no shareholding in each other but directors owning Sadhav Offshore Engineering which does shipbuilding and Defense projects. The thing I want to understand is does this mean that they have no shipbuilding activities in Sadhav Shipping, and if so why did they raise money from investors claiming to be doing shipbuilding recently in terms of preferrentials and warrants. Isn’t there a conflict between group companies as Sadhav Shipping has no stake in Sadhav Offshore Engineering but Sadhav Shipping claims to be doing Shipbuilding. Please simplify this for investors if possible.
Thanks
Can you attach any link for us verify & dig deeper