Synopsis:
Shipping Corporation of India Limited signed an MoU with BPCL, HPCL, and IOCL to jointly build and operate vessels, enhancing India’s shipping capacity and energy security for petroleum and hydrocarbon transport.
This PSU Navratna Stock, engaged in transporting goods and passengers, operating bulk carriers, tankers, container ships, and offshore supply vessels worldwide, jumped 8 percent after signing an MoU with BPCL, HPCL, and IOCL for petroleum transport.
With a market capitalization of Rs. 10,794.89 crores, the share of Shipping Corporation of India Limited has reached an intraday high of Rs. 237.10 per equity share, rising nearly 8.11 percent from its previous day’s close price of Rs. 219.30. Since then, the stock has retreated and is currently trading at Rs. 231.50 per equity share.
What is the News?
The Shipping Corporation of India Limited (SCI) has signed a Memorandum of Understanding (MoU) with Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Indian Oil (IOCL) as part of a Government of India initiative. This partnership, supported by the Ministry of Ports, Shipping and Waterways and the Ministry of Petroleum and Natural Gas, focuses on building and operating a shipping fleet.
The collaboration will help India boost its shipping strength and improve energy security. Together, the companies plan to acquire, own, operate, and manage vessels for international trade and coastal transport of petroleum, petrochemicals, and other hydrocarbon cargoes.
Company Overview
Shipping Corporation of India Limited (SCI) was established in 1961 through the amalgamation of Eastern and Western Shipping Corporations, later absorbing Jayanti Shipping Company and Mogul Lines.
The company is a government-owned public sector undertaking, headquartered in Mumbai, under the Ministry of Ports, Shipping, and Waterways. The company received Navratna status in August 2008, enhancing its operational autonomy.
Shipping Corporation of India Limited (SCI) operates a wide range of ships, such as bulk carriers, oil tankers, container ships, passenger-cargo vessels, LPG and ammonia carriers, and offshore supply vessels. This variety helps SCI serve different kinds of transport needs across sectors.
Along with carrying goods and passengers within India and abroad, SCI also provides logistics and transport solutions. It manages specialized vessels for government use, supporting important national requirements while also contributing to international shipping and trade.
Recent quarter results
Coming into financial highlights, Shipping Corporation of India Limited’s revenue has decreased from Rs. 1,514 crore in Q1 FY25 to Rs. 1,316 crore in Q1 FY26, which is a drop of 13.08 percent. The net profit has grown by 21.65 percent from Rs. 291 crore in Q1 FY25 to Rs. 354 crore in Q1 FY26. Shipping Corporation of India Limited’s revenue and net profit have grown at a CAGR of 4.85 percent and 20.23 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 9.81 percent and 10.5 percent, respectively. Shipping Corporation of India Limited has an earnings per share (EPS) of Rs. 18.11, and its debt-to-equity ratio is 0.27x.
Written By – Nikhil Naik
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