1. Green tug contracts - KMEW has secured two 15-year GTTP contracts worth ₹770.09 crore from VOCPA and Visakhapatnam Port, with construction at Saphale underway and completion within 9 months post-monsoon. At a 75% EBITDA margin on fixed charter regardless of usage, these two tugs alone add roughly ₹490 crore of contracted revenue.
2. Saphale shipyard ramp-up - Phase 1 of the 20-acre Saphale yard is expected operational by end of FY27, targeting 14 vessels per year initially and 18 at full build-out. Management targets ₹500-700 crore top line from the facility in three years, with export orders expected from Q3-Q4 FY27.
3. Dredging fleet expansion - KMEW plans ₹450 crore of dredging capex, including two larger dredgers adding \~12,000 cubic meters of hopper capacity, executable in under 90 days. This unlocks an additional ₹100-120 crore in maintenance dredging this year and ₹250 crore next year, plus \~₹70 crore and \~₹150 crore in capital dredging respectively.
4. Tonnage tax adoption - KMEW's option into the Tonnage Tax Scheme is approved for 10 years from A.Y. 2026-27, cutting tax on dredging and chartering income by over 90%. With 80% of FY27 revenue expected from these segments, the tax saving directly funds the ₹1,000 crore capex plan without diluting equity.
5. Charter and hire orderbook - The Charter and Hire vertical holds an unexecuted orderbook of ₹864.75 crore, spanning 15 contracts with ports including VOCPA, Mumbai, and New Mangalore, with tenors from 5 to 15 years. These contracts are 100% utilized and provide multi-year revenue visibility that underpins the 75% EBITDA margin green tug economics.
6. Inland waterways dredging - KMEW holds a 26% share of the Jal Marg Vikas Project order pool on NW-1, with an inland waterways orderbook over ₹270 crore across four contracts including the new NW-16 Barak River entry. With only four players competing and 20 more national waterways to be made navigable, the company's 50%+ bid hit rate positions it to capture a growing share of this under-penetrated market.
7. Capital raise and funding - The ₹285 crore preferential issue, including ₹240 crore from Convergent Finance, funds a ₹750 crore capex plan over 2-3 years, with an additional ₹150-200 crore raise under evaluation. With cash balance exceeding ₹350 crore and D/E at 0.39x, the balance sheet is fully capitalized to execute the growth pipeline without further equity dilution.