1. At a Glance

Picture this — a 64-year-old Navratna PSU that literally floats on profits, carrying crude, containers, and bureaucracy in equal measure, suddenly deciding to surprise investors with a 53.8% six-month rally. That’s theShipping Corporation of India Ltd (SCI)for you — India’s largest ocean transporter and possibly the only PSU that makes both oil and government files move.

At a market cap of ₹12,411 crore and a share price of ₹266 (as of 7 November 2025), SCI trades at a P/E of 15.4x — slightly above its industry median of 14.3x. The company just reportedQ2 FY26 (Sep’25)consolidated revenue of ₹1,339 crore andPAT of ₹189 crore, which represents aYoY fall of 35%but an OPM holding firm at 30%. It even declared aninterim dividend of ₹3/sharewith a ₹139.7 crore outgo — PSU flair for celebration remains intact.

Return metrics are modestly seaworthy — ROE 10.5%, ROCE 9.81%, and a dividend yield of 2.47%. Debt to equity of just 0.33 shows the company isn’t over-leveraged, unlike its passengers who once tried booking its ferry to Andaman.

And yes, it still owns59 vessels with a total of 5.31 million DWT, carrying everything from crude to patriotic sentiment.

2. Introduction – Sailing Between Bureaucracy and the Bay of Bengal

If you’ve ever wondered what happens when a 1960s-era government entity sails into the capitalist waters of 2025, meet SCI. This is India’s maritime dinosaur that refuses to go extinct — it just evolves slower than the glaciers melting under it.

SCI has been the country’sdefault marine muscle, transporting crude, coal, and containers for decades. Frombulk carriers to passenger-cum-cargo vessels, it moves everything — except perhaps its own divestment file, which keeps getting stranded somewhere between the Ministry of Shipping and NITI Aayog.

Despite sluggish bureaucratic tides, SCI continues to float above water, literally. Over the last five years, revenue has grown at a compound 4.84% and PAT at 27%. Modest, yes — but in PSU language, that’s basically winning an Olympic medal.

Its clients read like the who’s who of Indian industry —IOC, HPCL, BPCL, MRPL, ONGC, Reliance, and SAIL, among others. And given the latestMoU signed in September 2025 with IOCL, HPCL, and BPCLto jointly acquire and operate petroleum transport vessels, SCI’s future could smell faintly of crude oil and opportunity.

Sure, its profit growth dipped 21.5% this year, but it’s hard to complain when the company still throws cash overboard — literally paying a 2.47% dividend while battling service tax cases.

3. Business Model – WTF Do They Even Do?

Let’s decode SCI’s operations before we drift off into jargon seas.

SCI isIndia’s largest shipping company by tonnage, with operations across four main segments:

1. Tankers (67% of 9M FY24 revenue)– The lifeblood of SCI. Crude and product carriers servicing clients like IOCL, BPCL, HPCL, MRPL, and Reliance. When global crude prices swing, SCI’s margins roll like waves.
2. Bulk Carriers (13%)– These ships carry iron ore, coal, fertilizers, and dry bulk for big clients like SAIL, RINL, and Tata NYK. When the steel sector sneezes, SCI catches a cold.
3. Liner (9%)– Container and break-bulk transport. Once a major breadwinner (15% in FY19), now a poor cousin trying to make a comeback through coastal and feeder services.
4. Technical & Offshore (11%)– Includes managing offshore vessels for ONGC, DRDO, and ISRO. Basically, where SCI plays scientist and sailor at the same time.

With77% of revenue from Indian operationsand14% from “other countries”, SCI is still largely domestic — a proud reminder that globalization didn’t quite sink it.

And while the company talks aboutfleet modernization, recent reality includesselling an old tanker (MT Sampurna Swarajya)andplanning to acquire a second-hand PSV vessel. Yes, second-hand — PSU efficiency meets OLX maritime edition.

4. Financials Overview

Quarterly Comparison (₹ crore)

Annualised EPS: