Knowledge Marine & Engineering Works (KMEW) share price movement

Knowledge Marine & Engineering Works (KMEW) share price hit a new high of ₹3,304.60, gaining 3 per cent on the BSE in Thursday’s intra-day deals in an otherwise weak market. In comparison, the BSE Sensex was down 1.53 per cent at 71,527 at 02:51 PM.

The stock price of the dredging company quoted higher for the fourth straight day, surging 12 per cent during the period. Further, thus far in calendar year 2026, KMEW’s share price zoomed 70 per cent, compared to a 16 per cent decline in the BSE Sensex.

What’s driving KMEW stock price?

On September 19, 2026, KMEW said it secured its third Green Tug contract from Mumbai Port Authority, one of India's major ports. The contract, valued at approximately ₹279.33 crore (including taxes), involves the construction and hiring of a battery-operated Green Tug for a tenure of 15 years.

With this order, KMEW further strengthened its presence in India's emerging Green Tug segment, having won three Green Tug contracts awarded by Major Ports within a relatively short period. These contracts represent the company's growing portfolio of next-generation marine assets with long-term operating commitments.

The company has a multi-million order book from esteemed clients. The clientele includes Ministry of External Affairs, Kolkata Port Authority, Visakhapatnam Port Authority, Deendayal Port Authority, Paradip Port Authority and Jawaharlal Nehru Port Authority,

Meanwhile, KMEW’s profitability continues to remain healthy with PBILDT margin sustaining 38 per cent in the last two years and profit after tax (PAT) margin over 20 per cent in the last five years, indicating operational efficiency. According to CARE Ratings, KMEW's high profitability is attributable to its in-house repair, maintenance capabilities, and execution of higher margin dredging contracts in recent years, which limit costs and maintenance time, and superior utilisation of fleet.

As on March 31, 2026, the total unexecuted order book position stood at over ₹1,400 crore, providing medium-term revenue visibility. Presence of strong counterparties and a healthy execution track record mitigate risks to an extent. Going forward, CareEdge Ratings expects profit before interest, lease rental, depreciation, and taxation (PBILDT) margin to sustain over 35 per cent p.a. with increasing order book.

Further, the domestic maritime industry is expected to record healthy growth in the medium term, supported by the Government of India’s initiative including Sagarmala Project, Jal Marg Vikas Project, and Maritime Amrit Kaal Vision 2047, which aim to enhance port capacity and develop and strengthen inland waterways, supporting growth in demand for dredging and chartering of port ancillary crafts. 

The Green Tug Transition Program aimed at phased replacement of conventional diesel-powered tugs with battery-powered green tugs is expected to generate significant vessel construction and chartering demand over the coming years. Incrementally, the Government of India is providing sizeable subsidies to promote domestic vessel construction in addition to the extension of tonnage tax scheme to domestic vessel operators, which is expected to support cash flows. KMEWL is expected to benefit from the favourable industry growth prospects of the domestic maritime industry, the rating agency said.

 Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.