Summary
SEAMEC Limited - Q3 FY 2026 Earnings Call Summary Monday, February 02, 2026, 4:00 PM IST
Event Participants
Executives 3 Naveen Mohta (Whole-Time Director), Sunil Gupta (VP Strategy and IR), Vinay Kumar Agarwal (CFO)
Analysts 6 Abu Raf (Wealth Catalyst), Amish Kanani (Knowise Investment Managers), Balasubramanian (Arihant Capital), Pratam Agarwal (Nova Orbit), Rahul Jain (Abhinandan Stock Broking), Rohan Barnwal (Trinetra Investment Capital), Zohaib Rashid (Swinglist)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹331 crores | +138% YoY; Highest ever quarterly revenue due to peak vessel deployment and NLM9 project. |
| Revenue (Standalone) | ₹317 crores | +139% YoY; Driven by strong operational performance and turnkey projects for ONGC. |
| EBITDA (Consolidated) | ₹150 crores | +341% YoY; Margin expansion driven by high-value IMR contracts and asset utilization. |
| PAT (Consolidated) | ₹100 crores | Reversal from ₹3 crore loss in Q3 FY25; Reflects improved charter rates and operational efficiencies. |
| ROCE (Consolidated) | 15% | Robust returns on capital employed following recent fleet acquisitions and higher deployment. |
| ROE (Consolidated) | 16% | Strong equity returns supported by record profitability in the current quarter. |
| Net Debt | Zero/Negative | Management confirmed net debt is neutral or negative despite recent vessel acquisitions. |
Geographic & Segment Commentary
- Domestic (India): Performed exceptionally well due to the turnkey revamping of ONGC’s NLM9 platform, completed ahead of schedule. Seamec III and Agastya have commenced operations with ONGC; the sector benefits from India’s push to increase refining capacity to 300 MMTPA.
- International (Dubai/Subsidiaries): The Dubai subsidiary contributed ₹15 crores in revenue for the quarter. However, the international segment saw a net PAT impact of negative ₹2 crores due to specific subsidiary expenses.
- Offshore Support Services: Recorded the highest ever vessel deployment in company history. Transitioning toward Inspection, Maintenance, and Repair (IMR) contracts to ensure year-round utilization and higher margins compared to seasonal EPC work.
Company-Specific & Strategic Commentary
- Vessel Acquisition (Seamec Anant): Currently in the final stages of acquisition from parent HAL Offshore; expected deployment in Q1 FY27. Funded through a 50:50 mix of internal accruals and debt (₹1,000 crore MOU signed with DG Shipping for future fleet expansion).
- Strategic Pivot to IMR: Shifting focus from seasonal EPC contracts to IMR contracts to ensure 365-day vessel utilization. This strategy aims to stabilize quarterly volatility and capture higher daily charter rates (e.g., Swordfish at $75,000/day).
- Synergy with Parent (HAL Offshore): Management is intentionally moving business from HAL to SEAMEC to create shareholder value. A specific contract for the vessel “Goodman” contributed ₹22 crores to Q3 revenue.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Seamec Anant Deployment | Q1 FY27 | Acquisition to be completed in Q4 FY26; will contribute to revenue from next fiscal year. |
| Debt Repayment | 3-4 Years | Management intends to use strong internal accruals to prepay debt for Agastya and Anant. |
| Annual Growth | Sustained Growth FY27 | Growth expected from full-year contribution of Swordfish and new additions (Agastya/Anant). |
| Dry Docking Impact | Q4 FY26 | Seamec Paladin and Seamec Diamond are in dry dock; Q4 revenue will be lower than Q3. |
Risks & Constraints
| Risk | Context |
|---|---|
| Asset Utilization/Maintenance | Vessels like Seamec Paladin require periodic dry docking (70 days), leading to off-hire periods and revenue slippage in specific quarters. |
| Regional Concentration | Heavy reliance on ONGC tenders and Indian offshore exploration cycles, although global demand for oil remains a tailwind. |
| Operational Breakdown | High-value machinery is prone to technical issues (as seen in previous quarters); while managed via contingency margins, it remains an inherent risk. |
Q&A Highlights
Charter Rates & Sustainability
- Question: Are current peak charter rates sustainable over the next 2 years? (Abu Raf)
- Answer: Environment remains steady; visibility is high due to a mix of long-term and short-term contracts. Rates for assets like Swordfish ($75,000) vs Anant ($45,000) vary based on cranage, accommodation, and vessel age (Naveen Mohta).
Vessel Transfers from Parent
- Question: Why is the Seamec Anant acquisition taking over a year? (Zohaib Rashid)
- Answer: Delays were due to regulatory requirements, shareholder approvals for related party transactions, and ONGC approvals for contract transfers (Sunil Gupta).
Financial Strategy
- Question: Will surplus cash be used for growth or debt reduction? (Amish Kanani)
- Answer: Priority is growth assets; internal accruals will fund the majority of the Anant acquisition, with the remainder used to reduce debt (Sunil Gupta).
Regulatory Environment
- Question: Will DG Shipping age norms force retirement of older vessels? (Rohan Barnwal)
- Answer: Diving Support Vessels (DSVs) are currently exempted from age-related retirement norms in India; retirement will be based on commercial viability (Naveen Mohta).
Key Takeaway
SEAMEC Limited delivered a landmark performance in Q3 FY26, achieving its highest-ever quarterly revenue of ₹331 crores and a PAT of ₹100 crores. This growth was underpinned by peak vessel utilization and the successful turnkey execution of ONGC’s NLM9 platform. The company is strategically transitioning its fleet toward long-term IMR contracts to mitigate seasonality, evidenced by the addition of Seamec Agastya and the pending Q1 FY27 deployment of Seamec Anant. While Q4 FY26 is expected to see a sequential softening due to the scheduled dry docking of Seamec Paladin, the overall outlook remains robust. With a net-zero debt position and a ₹1,000 crore investment MOU for fleet expansion, SEAMEC is well-positioned to capitalize on India’s expanding energy exploration landscape. Management remains focused on high-margin asset acquisition and sustaining double-digit ROCE.
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