Seamec Limited Reports Strong Q1 FY26 Results, Announces Fleet Expansion and Strategic Focus on Middle East

* Seamec Limited reported a consolidated revenue of ₹231 crore for Q1 FY26, a 4% year-on-year (YoY) increase from ₹223 crore in Q1 FY25. * Consolidated EBITDA for Q1 FY26 stood at ₹117 crore, marking a 45% YoY increase from ₹81 crore in Q1 FY25. * Consolidated Profit After Tax (PAT) was ₹76 crore, up from ₹50 crore in Q1 FY25. * The company achieved a solid operational efficiency factor of 93% during the quarter. * Vessel updates include Seamec Princess completing Pipeline Replacement Project VII and transitioning to PRP VIII and Daman Upside Development Project, generating revenue for an additional 18 days. Seamec 3 continued consistent returns through extended charter, and Seamec 2 completed its dry dock ahead of schedule, expected to return to the field by September 10, 2025, saving approximately 20 days. * The acquisition of the Nusantara vessel is expected to be completed in August 2025, with deployment planned from December 2025 onwards. * Shareholder approval has been received for the purchase of Seamec Anant, with the transaction expected to be completed by October 2025. * Management stated that FY25-26 is expected to be a year of execution, consolidation, and growth with the addition of these two high-value vessels. * The company is diversifying into offshore support vessels and accommodation barges, increasing operational flexibility and participation in a wider range of offshore projects. * Seamec is focusing on expanding its presence in the Middle East market, with the vessel SWORDFISH already deployed for a two-year contract with Saudi Aramco. * Regarding management fees, the company has engaged Grant Thornton for a comprehensive related party transaction review, with the report expected soon. Management believes the fees are well within market benchmarks. * The UK business investment is for setting up a global office to explore North Sea markets, with part of the investment expected to be repatriated to India upon project completion, despite a 12-15 month delay due to geopolitical situations, with minimal cost impact. * New support vessels are expected to generate margins of 30-35%. * The company's order book is strong, with long-term contracts secured for most vessels (e.g., Seamec Paladin for 3 more years, Swordfish for 2 years, Nusantara and Anant for 3-4 years once deployed). Seamec 3 and Seamec Princess are deployed on spot market requirements or long-term contracts. * Q2 is typically a monsoon-affected quarter in India, leading to minimal revenue and a focus on vessel maintenance, with Q3, Q4, and Q1 being the primary revenue-generating periods. * Cost control measures include deploying newer vessels (reducing maintenance costs), creating a crew pool to manage wages, and efficient dry dock management. * The company has exited the tunnel construction joint venture to refocus primarily on MSV (Marine Support Vessel) and subsea operations, with no current intention to re-enter infrastructure projects within the next five years. * The JV in GIFT City is a financial planning initiative, offering risk-free returns from bareboat charters, providing better returns than treasury investments. * Seamec 2 already utilizes ROV (Remotely Operated Vehicle) technology, and future adoption of advanced technologies like AI-driven analytics would be driven by customer demand. * Management commented, "We believe that our vessels will work on longer contracts in higher velocity than previously. This will help both in terms of consistent performance as well as growth for the company."