Synopsis:
Sadhav Shipping Ltd, secured a three-year deployment contract with Oil and Natural Gas Corporation Ltd. (ONGC) for its upgraded vessel M.V. Canara Pride.
A shipping and offshore services stock gained sharply in Monday’s session after announcing a strategic contract deployment with ONGC. Investor sentiment improved as the company highlighted its expanding offshore presence.
Sadhav Shipping Ltd, with a market capitalization of Rs. 167.57 crore, opened at Rs. 109.15 against its previous close of Rs. 111.35. The stock hit an intraday high of Rs. 122, marking a 9.6 percent rise from the previous close.
What’s the News?
The company has successfully deployed its M.V. Canara Pride vessel under a three-year contractual agreement with ONGC. The contract is valued at USD 12.27 million (approximately Rs. 108.9 crore).
The vessel recently underwent a major technical upgrade from DP1 to DP2 capabilities, enhancing its dynamic positioning accuracy and operational versatility. This enhancement significantly boosts the vessel’s employability and market value, making it suitable for high-performance offshore assignments.
The company stated that this development represents a strategic milestone in its offshore services portfolio and reinforces its commitment to supporting India’s energy infrastructure.
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Operational Highlights
During FY24-25, the offshore supply vessel (OSV) segment generated Rs. 61.04 crore, reflecting strong growth amid favorable market conditions. However, port services revenue declined to Rs. 24.06 crore, and oil spill response revenue fell to Rs. 11.77 crore due to contract closures.
The company highlighted that rising demand for fuel-efficient ships and advancing technology necessitate new vessel orders with greater operational reliability. Leveraging strategic partnerships in electric mobility solutions, Sadhav is preparing to expand further into the electric boat market with potential customer interest.
In oil spill response, alliances with international brands provide a technological edge to secure higher-value contracts. Furthermore, with a recent foothold in West Africa, the company expects to capture growth opportunities in the region’s oil and gas sector.
Financial Snapshot
On a sequential basis from September 2024 to March 2025, sales increased from Rs. 38 crore to Rs. 59 crore, up 55.3 percent. Operating profit rose from Rs. 12 crore to Rs. 19 crore, an increase of 58.3 percent. Profit before tax improved from Rs. 7 crore to Rs. 11 crore, higher by 57.1 percent, while net profit grew from Rs. 5 crore to Rs. 7 crore, a rise of 40 percent.
On a year-on-year basis from March 2024 to March 2025, sales advanced from Rs. 51 crore to Rs. 59 crore, an increase of 15.7 percent. Operating profit nearly doubled, rising from Rs. 11 crore to Rs. 19 crore, an increase of 72.7 percent. Profit before tax climbed from Rs. 7 crore to Rs. 11 crore, higher by 57.1 percent, while net profit grew from Rs. 5 crore to Rs. 7 crore, marking a 40 percent increase.
About the Company
Sadhav Shipping Limited is an integrated offshore logistics and maritime services provider. Its offshore logistics division offers crew transport, supply vessels, and offshore support solutions. The company’s port services include management and operation of port crafts, deployment of high-speed patrol boats for surveillance, tugs, pilot boats, and utility vessels to ensure security and operations.
Its oil spill response business provides specialized vessels and equipment for environmental protection and emergency management. Additionally, Sadhav operates barges and vessels for coastal and inland cargo transportation, lighterage, bulk cargo handling, and customized logistics solutions.
Written by Manan Gangwar
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