Dredging Corporation of India Ltd Management Discussions

Economy Overview

Global Economy¹

Overview

The global economy maintained steady momentum despite continued pressure from geopolitical conflicts, shifting trade policies, and heightened uncertainty across markets. Additional uncertainty stemmed from shifting trade policies, tariff-related risks, and increased volatility in financial markets. However, these pressures were partly offset by technology-driven investments, accommodative financial conditions, including a weaker US dollar, and supportive fiscal and monetary policies. As a result, the global economy recorded moderate growth of around 3.4% in CY 2025 and continued to expand at a stable pace despite recent geopolitical developments and disruptions in energy markets.

Global trade flows also remained stable, although trade patterns increasingly reflected changing dynamics such as reduced imports from China and rising trade with countries like Vietnam and Taiwan. This shift was driven by supply chain reconfiguration due to geopolitical tensions and trade wars, elevated US tariffs, lower input costs for raw materials sourced from Southeast Asian countries and policy adjustments across major economies. Technology-related trade continued to remain a key contributor, partly offsetting slower momentum across other segments. These trends continued to influence sectors linked to capital expenditure, infrastructure and industrial expansion.

Advanced economies grew at a relatively moderate pace, expanding by 1.9%, while emerging market and developing economies (EMDEs) recorded stronger growth of 4.4%. Among EMDEs, India continued to outperform several other developing economies and remained an important driver of both regional and global growth. This momentum continued to contribute meaningfully to overall global economic expansion.

Improving supply conditions and the impact of monetary policy measures helped ease inflationary pressures compared to recent years. However, regional variations continued to persist, with several economies gradually moving towards their target inflation levels.

Outlook

Geopolitical developments, including tensions in energy-sensitive regions such as West Asia, continue to pose risks to energy markets and global supply chains, with potential implications for commodity prices and input costs across industries. If the ongoing conflicts remain limited in duration and impact, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027.

The global outlook continues to be influenced by external factors, including trade policy shifts, financial market movements, elevated public debt levels and geopolitical developments, particularly in energy markets, which may disrupt supply chains and increase commodity price volatility. Central banks are expected to remain focused on maintaining price stability, with policy measures aligned to evolving inflation conditions. Strengthening policy credibility, improving adaptability and enhancing international cooperation are expected to remain important priorities in navigating current challenges and future uncertainty.

Indian Economy Overview²

The Indian economy maintained strong growth momentum in FY 2025–26, with real GDP growth at 7.6%, supported by domestic demand, investment activity and stable macroeconomic fundamentals. Growth was led by the services and manufacturing sectors. Economic conditions remained stable despite global uncertainty arising from geopolitical tensions, elevated energy prices and supply chain disruptions.

Domestic demand continued to remain the primary growth driver. Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) grew by 7.7% and 7.1%, respectively, during FY 2025–26.³ Rural demand remained steady, supported by the agriculture sector, while urban consumption improved alongside increased activity in the services sector.

Inflation remained largely under control during FY 2025–26. Headline CPI inflation stayed below the 4% target, while core inflation stood at around 3.4%. Core inflation excluding precious metals remained at approximately 2.1% during the year, reflecting relatively stable underlying price conditions.⁴ However, food inflation remained comparatively higher at around 3.87%, reflecting an increase in food prices towards the latter part of the year, even as risks relating to global commodity prices and supply disruptions persisted. In response, the Reserve Bank of India maintained a supportive monetary stance. The policy repo rate was reduced by 100 basis points during the year to 5.25%, while liquidity conditions supported adequate credit availability.⁵

This momentum was further supported by prudent fiscal management, stable revenue mobilisation and disciplined expenditure. Government spending on infrastructure continued to support investment activity, while GST collections and digital adoption improved overall efficiency. Employment conditions also remained stable, with unemployment at 4.9% in FY 2025–26.

Public investments in transportation, energy and logistics, through initiatives such as PM Gati Shakti and the National Infrastructure Pipeline, continued to support industrial output and capacity creation across sectors. Capacity utilisation improved to around 75%–76%, indicating a gradual recovery in private investment and stronger demand across infrastructure-linked industries⁶. Regulatory measures introduced by the Reserve Bank of India also supported the sector. A revised framework for infrastructure lending reduced provisioning requirements for under-construction projects from 5% to 1%, improving credit flow and making financing more viable for lenders.⁷

Indirect tax reforms, particularly GST, continued to simplify the taxation framework and reduce rates across key sectors. At the same time, trade agreements such as the India–EU Free Trade Agreement and ongoing discussions with the US are strengthening Indias role in global value chains. The India–EU FTA is expected to unlock significant economic opportunities, with bilateral trade already at around INRINR11.5 lakh crore (USD 136.5 billion) and exports to the EU at INRINR6.4 lakh crore.⁸ The agreement is expected to provide preferential market access to over 99% of Indian exports, creating opportunities for export growth, employment generation and investment inflows.

This growth trajectory remains aligned with the Governments long-term vision of Viksit Bharat 2047, which focuses on sustained economic growth, infrastructure expansion, and productivity enhancement to transition India into a developed economy. Continued emphasis on infrastructure-led development remains a key pillar of this strategy.

Indian Economy Outlook

The Indian economy is expected to maintain a stable growth trajectory, supported by strong domestic fundamentals and continued policy support. Growth is likely to remain driven by domestic demand, alongside sustained focus on infrastructure development and capital expenditure. Higher public investment, improving capacity utilisation and stronger corporate and financial sector balance sheets are expected to support a gradual increase in private sector investment. Policy initiatives are expected to continue supporting growth and strengthening export competitiveness. The Union Budget 2026–27 has maintained its emphasis on infrastructure-led development, with public capital expenditure of around INRINR12.2 lakh crore, equivalent to 3.1% of GDP and total expenditure of about INRINR53.5 lakh crore. This continued investment push is expected to support economic activity and improve overall growth momentum.⁹

Inflation is expected to remain within the target band of 4% with a tolerance range of 2%, supported by stable supply conditions and calibrated policy measures. Monetary policy is expected to remain data-driven, balancing growth priorities with price stability. Despite global uncertainties, including commodity price volatility and geopolitical risks, Indias macroeconomic strengths, including foreign exchange reserves of around USD 697.1 billion and diversified growth drivers, are expected to provide economic stability. ¹⁰

Industrys Outlook, Structure and Development

Global dredging industry

Overview

The global dredging industry reached a valuation of USD 13.21 billion during CY 2025.¹¹ Government entities continued to remain the primary drivers of demand, accounting for nearly 46% of the open market, as countries prioritised flood defence, coastal protection and infrastructure modernisation.¹²

The Asia-Pacific region continued to lead global market share during the year, supported by rising infrastructure activity and coastal development projects. Technology also emerged as an important differentiator, with the dredge automation market valued at 2.5 billion USD in 2025.¹³ Advanced control systems, automation platforms, and IoT-enabled sensors are increasingly being integrated into dredging systems for real-time monitoring, helping improve excavation precision, sediment management efficiency and reduction of material loss.

Artificial Intelligence and machine learning algorithms are now enabling real-time route optimisation, lowering fuel consumption and minimising unnecessary passes. Remote diagnostics and high-precision GPS-GIS integration have also become increasingly common for managing operations in environmentally sensitive marine regions.

Sustainability continued to gain importance across the dredging industry, with increasing investments in eco-friendly andlow-emissiontechnologiesdrivenbystricterenvironmental regulations and decarbonisation initiatives. As a result, the global market for eco-friendly dredging solutions witnessed strong growth during 2025. The industry also increased focus on the beneficial reuse of sediment, with efforts directed towards recycling of at least 30% of dredged material for habitat restoration and coastal defence.¹⁴ These initiatives aim to reduce the environmental impact of traditional sea disposal methods while also creating new habitable or industrial land.

Among the key developments during 2025 was the establishment of a 720 million USD nature-based adaptation fund at COP29, which opened new financing avenues for protective dredging activities. ¹⁵In addition, the Hong Kong Convention for sustainable ship recycling came into effect during CY2025, influencing the gradual phase-out of ageing fleets. The industry also benefited from record renewable energy additions of 692 GW in 2025, which increased demand for seabed preparation activities related to offshore

Outlook

The global dredging industry is expected to reach a valuation of USD 13.81 billion in CY 2026, reflecting an estimated growth of 4.5%. ¹⁷ The year is expected to mark a phase of transition for global trade growth, likely to slow from 4.6% in CY 2025 to 1.9% in CY 2026¹⁸.

One of the key developments influencing global markets is the effective closure of the Strait of Hormuz in early 2026, which resulted in commercial traffic declining from nearly 138 vessels per day to near zero. ¹⁹This disruption has tightened global energy and fertiliser markets, driving crude oil prices above USD 100 per barrel.

For the dredging industry, these developments are expected to shift project demand towards emerging South-South manufacturing and trade corridors. While rising geopolitical risks and insurance-related constraints may temporarily affect activities in high-risk regions, the growing need for alternative export infrastructure and deeper navigational channels in relatively stable regions is expected to sustain demand. From a regional perspective, the Asia-Pacific region continued to remain the largest market for the dredging industry in 2025, while Japan emerged as one of the fastest-growing markets with a projected CAGR of 5% over the coming decade.²⁰

Indian dredging industry

Overview

The Indian maritime sector continues to remain central to the countrys trade ecosystem, facilitating nearly 95% of trade by volume and around 70% by value through maritime transport.²¹ With 12 major ports and more than 200 non-major and intermediate ports spread across Indias 7500 KM of coastline, the country continues to expand its maritime infrastructure to support rising cargo traffic, supply chain integration, and export competitiveness.²²

During FY2025–26, the Indian maritime sector recorded a strong performance. Major ports collectively handled 915.17 MMT of cargo, surpassing the annual target of 904 MMT and registering a 7.14% increase over the MMT handled in the previous year. The sector also witnessed an important regulatory development with the passage of the Indian Ports Bill, 2025, in August 2025, replacing the earlier 1908 framework and supporting the transition towards greener maritime operations.

Infrastructure expansion remained a major area of focus during the year. The Union Cabinet approved a 69,725 crore package for strengthening the shipbuilding and maritime ecosystem.

24The Vadhavan Port project in Maharashtra also recorded significant progress, including the award of an INR2,360 crore contract for an access-controlled expressway connecting the port to the national highway network.²⁵ Reclamation and dredging activities for the greenfield port involve an investment of INRINR17,709 crore.²⁶

In parallel, the International Container Transhipment Port (ICTP) at Galathea Bay is being developed at an estimated cost of 99,000 crore, leveraging the locations natural depth to accommodate large container vessels.²⁷

Cargo movement through inland waterways also increased significantly, reaching 198 MMT during FY 2025–26, reflecting the continued expansion of the 32 operational national waterways. The sectors financial ecosystem was further strengthened with the inauguration of the Sahayata Maritime Financial Corporation Limited (SMFCL) in 2025. By the end of the year, the NBFC had sanctioned loans worth INR4,300 crore.²⁸

Indian Industry Outlook

The outlook for the Indian dredging and maritime industry remains centred around port-led development and integrated logistics infrastructure to support the countrys long-term trade ambitions. Strategic investments continue to focus on building world-class maritime infrastructure and enabling seamless logistics connectivity to support economic growth.

The Government has outlined ambitious targets, including handling 10,000 million tonnes of EXIM cargo and 500 million tonnes through inland waterways by 2047.²⁹ To support these objectives, plans are underway to operationalise 20 new national waterways over the next five years, including NW-5 in Odisha, which is expected to handle nearly 23 million tonnes of cargo over the long term. ³⁰

The phased operationalisation of the Vadhavan Port by 2030 is also expected to generate significant demand for continuous capital dredging to support the proposed container handling capacity of 23.2 million TEUs.³¹ In addition, the Cruise Bharat Mission aims to double passenger traffic by 2029, creating demand for the development of nearly 100 river cruise terminals across the country.

Dredging Guidelines for Major Ports by the Ministry of Shipping

As per the prevailing Dredging Guidelines issued by the Ministry of Ports, Shipping and Waterways, major ports operating a port-owned dredging company may award dredging contracts directly to such entities on a nomination basis, subject to approval from the respective Board of Trustees or Board of Directors.

The nomination route also requires adherence to competitive market-based price discovery for similar quality standards and operating conditions. At the same time, the Ministry has continued to encourage major ports to adopt open competitive bidding for both capital and maintenance dredging activities to enhance transparency and improve operational efficiency across the sector. ³³ Further, the Ministry of Ports, Shipping and Waterways retains the authority to allocate dredging contracts to port-owned dredging companies in matters involving public interest, in accordance with the prescribed settlement procedure. During FY 2025-26, maritime sector reforms introduced under the Indian Ports Act, 2025 and related rule-making measures further strengthened governance standards, tariff transparency, dispute resolution mechanisms, environmental compliance, and operational flexibility across Indias port ecosystem. ³⁴

Growth Drivers

The Blue Economy Framework

The shift towards a sustainable blue economy marks an important transition in the way India is leveraging ocean resources to support economic growth. Building on the Maritime India Vision 2030, the government has now outlined the Maritime Amrit Kaal Vision 2047, targeting investments of nearly 89 lakh crore across 300 identified action points.³⁵ The broader strategy focuses on creating economic value from marine ecosystems while maintaining environmental safeguards and long-term sustainability. India also aims to position itself among the top five global shipping tonnage nations by the centenary of independence, which requires a more integrated and efficient maritime ecosystem instead of fragmented port operations. In line with this vision, legislative reforms and fiscal support measures for seafarers are being introduced to increase the number of vessels operating under the Indian flag. These developments are expected to strengthen a maritime ecosystem that supports nearly 95% of Indias external trade volume.

Legislative and Regulatory Shifts

The repeal of the colonial-era Indian Ports Act of 1908 and its replacement with the Indian Ports Act of 2025 have created a more modern statutory framework for maritime governance. The revised framework mandates compliance with global environmental standards such as the International Convention for the Prevention of Pollution from Ships (MARPOL) and the Ballast Water Management Convention. By promoting cleaner and more sustainable maritime operations, the new law aims to strengthen the role of ports as safe and environmentally responsible trade hubs. The Sagarmala 2.0 initiative further complements this effort through continued emphasis on port-led industrialisation and integrated transport networks aimed at reducing logistics costs.

The evolving regulatory framework also seeks to create a more level playing field for domestic vessels through simplified registration processes and the Right of First Refusal mechanism. These reforms are expected to support the growing scale of maritime activity, particularly after major ports handled a record 855 million tonnes of cargo during the FY2024–25 fiscal.³⁷

Strategic Mega-Port Developments

India is accelerating the development of greenfield mega-ports like Vadhavan Port in Maharashtra and the Galathea Bay International Container Transhipment Terminal in Great Nicobar Island to accommodate ultra-large container vessels and strengthen maritime infrastructure capabilities.

Vadhavan Port is being developed with a natural draught of 20 meters, enabling it to handle large vessels beyond the capacity of many existing facilities. The project follows a landlord model with the Jawaharlal Nehru Port Authority holding a 74% stake.³⁸ Meanwhile, the Galathea Bay International Container Transhipment Terminal is strategically located nearly 40 nautical miles from the Malacca Strait, positioning it as an important transhipment hub along global trade routes.³⁹

The phased development of these projects is aimed at balancing high capital requirements with revenue-generating opportunities, while also helping India capture transshipment traffic currently routed through foreign ports. Collectively, these projects are expected to manage nearly 23.2 million TEUs by 2040. This expansion assumes greater importance as existing port infrastructure approaches capacity limits.⁴⁰

Energy Hub Transformation⁴¹

Major ports are increasingly evolving into key centers supporting Indias green energy transition, particularly for green hydrogen and ammonia. Deendayal, V.O. Chidambaranar and Paradip Port have been identified as primary clusters under the National Green Hydrogen Mission.

At Deendayal Port, 3,400 acres have been earmarked for companies such as Reliance and L&T to produce 5.5 million tons of green derivatives annually by 2031.Paradip Port is investing 7.97 billion towards the development of a specialized liquid cargo jetty with a depth of 14.3 meters to support export logistics. VOC Port has already operationalized a pilot hydrogen plant and is also developing a green methanol bunkering facility.

These developments are aligned with the Harit Sagar guidelines, which target ports sourcing more than 60% of their energy requirements from renewable sources by 2030 and 90% by 2047.⁴²

AI and the "Thinking Port" Transition

Indias maritime sector is also witnessing a gradual transition towards "Thinking Ports". Where technology is being integrated into port governance and logistics planning beyond conventional automation.

In February 2026, VOC Port launched Indias first integrated Digital Twin platform, a real-time virtual replica powered by IoT sensors, LiDAR systems , and drone imaging to simulate operational scenarios and improve planning efficiency.⁴³The platform is expected to support predictive maintenance and scenario modeling, while also reducing vessel turnaround time by up to 25%⁴⁴.

The sector is also seeing wider adoption of AI-powered solutions such as Port GPT, an AI-powered assistant designed to manage vessel schedules and track cargo movements through conversational interfaces. Industry estimates suggest that large-scale AI adoption could help the maritime sector save nearly INR 20,000 crore in cargo handling expenses and an additional INR 15,000 crore annually in logistics expenses through improved berth allocation and more efficient container stacking.⁴⁵

Geopolitical Resilience and Insurance Sovereignty

Rising geopolitical tensions in regions such as the Red Sea and the Strait of Hormuz are reshaping global trade routes and increasing the strategic importance of Indian ports as transshipment and logistics hubs. As shipping lines increasingly reroute vessels around Africas Cape of Good Hope, emerging deep-water ports like Vizhinjam have witnessed a sharp rise in activity, handling higher cargo volumes as carriers look for alternative trade corridors.

To safeguard energy and trade flows from volatile war-risk premiums, the government launched the Bharat Maritime Insurance Pool (BMIP) in 2026. Backed by a USD USD1.5 billion corpus and a sovereign guarantee of nearly INR 12,980 crore, the mechanism is designed to act as an insurer of last resort, ensuring continuity of trade operations for Indian-flagged vessels during periods of sanctions, geopolitical conflict or insurance market disruptions.

Indias long-term maritime resilience is also expected to benefit from the India-Middle East-Europe Economic Corridor (IMEC), which aims to reduce dependence on traditional maritime chokepoints and strengthen regional trade connectivity.

Cruise and Heritage Expansion

Indias maritime tourism sector is also witnessing increasing policy focus through the Cruise Bharat Mission, which aims to double passenger volumes by 2029. The initiative seeks to position India as a leading global cruise destination through the development of dedicated cruise terminals and river cruise circuits across the Ganga and Brahmaputra river systems. Alongside infrastructure creation, projects like the Maritime Heritage Museum at VOC Port are combining cultural preservation with economic development, supporting regional tourism while preserving Indias maritime legacy for future generations.

To support growing maritime infrastructure requirements, the sector is also strengthening domestic marine engineering capabilities through projects such as the DCI Dredge Godavari. The 127-meter vessel, being built at Cochin Shipyard, is among the most advanced dredgers developed domestically and is equipped with heavy-duty drag heads designed for Indian soil conditions.

Comparative Growth Targets for the Indian Maritime Sector

Metric	Current Status (approx.)	Target 2030 (MIV)	Target 2047 (MAKV)
Port Capacity (MTPA)	2,500	3,300	10,000
Tonnage Ranking	Outside Top 15	Top 10	Top 5
Inland Waterways Cargo	120 MTPA	200 MTPA	500 MTPA
Renewable Energy at Ports	<10%	60%	90%
Carbon Emission Reduction	Baseline	30% per tonne	70% per tonne

Source: PIB Report

Companys Overview

Dredging Corporation of India Limited (DCI), incorporated in 1976, is engaged in providing integrated dredging and allied marine services to ports, the Indian Navy and other maritime organisations across India. The Company is headquartered in Visakhapatnam, Andhra Pradesh, and functions under the administrative control of four major port authorities- Visakhapatnam Port Authority, Jawaharlal Nehru Port Authority, Paradip Port Authority and Deendayal Port Authority.

DCIs core operations include maintenance dredging, capital dredging, land reclamation, beach nourishment, inland dredging and marine infrastructure support services aimed at facilitating maritime trade and coastal development. In addition to its domestic operations, the Company has also executed international assignments in countries such as Sri Lanka, Taiwan and the UAE.

During FY 2025–26, DCI continued its focus on fleet modernisation, technology integration and strengthening its marine infrastructure capabilities, supported by multiple strategic MoUs signed during India Maritime Week 2025.

Facilities/Instruments	Rating
Long-Term Bank Facilities	CARE BBB+; Stable
Long-Term / Short-Term	CARE BBB+;
Bank Facilities	Stable / CARE A3+
Short-Term Bank Facilities	CARE A3+

Source: CARE Ratings – Dredging Corporation of India Limited Rating Rationale

Some of the Major Highlights for DCI in FY 2026

Indigenous Shipbuilding and the Beagle Series 12 Platform

One of the major highlights for DCI during FY 2025–26 was the technological advancement achieved through the construction of the DCI Dredge Godavari. under the Atmanirbhar Bharat initiative. The vessel was Launched on October 18, 2025, at Cochin Shipyard Limited. The DCI Dredge Godavari has need specifically designed for Indian maritime conditions. It is equipped with heavy-duty drag heads suited for clay-type soils commonly found across Indian ports and incorporates robust IHC conical bottom valves to improve discharge efficiency. The vessels commissioning, expected in late 2026, is anticipated to strengthen the Companys overall dredging capacity and enhance its ability to execute large-scale reclamation and dredging projects, including developments such as Vadhvan Port and the Galathea Bay transshipment hub.

India–Netherlands Tripartite Collaboration

A tripartite collaboration between the corporation, Cochin Shipyard, and Royal IHC of the Netherlands, ensuring global technical standards were integrated into the domestic manufacturing framework.

India Maritime Week 2025 and Revenue Stability

The signing of twenty-two MoUs during India Maritime Week 2025 strengthened the Companys order book and improved long-term revenue visibility. These agreements, valued at nearly INRINRINR17,645 crore, span a period of two to five years and involve sixteen different organizations, including major ports, shipyards, and technology centers.

Major Port Agreements

The agreements signed with major ports continue to remain a key pillar of the Companys commercial strategy. Since Visakhapatnam Port Authority, Paradip Port Authority, Jawaharlal Nehru Port Authority, and Deendayal Port Authority are also the principal promoters of the Company, these partnerships reflect a mutually supportive relationship. While the ports continue to ensure navigational depth and operational efficiency, the Company benefits from stable order inflows. And improved business visibility.

Organization	Agreement Details	Duration
Mumbai Port Authority	Maintenance and Capital Dredging valued at INRINRINR510 crore	2–5 Years
Visakhapatnam Port	Comprehensive dredging services agreement	3–5 Years
Paradip Port Authority	Deepening and fairway maintenance	2–5 Years
Jawaharlal Nehru Port	Channel and basin maintenance for high-capacity vessels	2–5 Years
Syama Prasad Mookerjee Port	Continued maintenance in the Hooghly Estuary shipping channel	5 Years

The MoU with the Mumbai Port Authority is particularly significant, as it includes a specific allocation of INRINR60 crore for capital dredging works, signaling the corporations intent to expand its footprint in high-margin infrastructure development. The scale of these MoUs represents nearly seven times the companys market capitalisation, which shifted the market sentiment, leading to a 20% upper circuit in the stock price in November 2025.

Golden Jubilee Milestones

On March 29, 2026, the Dredging Corporation of India marked 50 years of existence.

Growth Metrics: 1976 vs 2026

The transformation of the Companys technical and financial capabilities over five decades provides insight into the scale of its current operations.

The Golden Jubilee was marked by the release of a special My Stamp by India Post and high-level addresses from the Union Minister for Ports, Shipping and Waterways, who emphasised that the organizations efforts are essential for keeping Indias trade lanes active and efficient. The vision for 2047, as outlined by Chairman Dr. M. Angamuthu, is for the corporation to emerge as a globally recognized leader that contributes to sustainable maritime infrastructure worldwide.

Key objectives of Dredging Corporation of India

Maintaining its leadership position in the Indian dredging industry

Expanding fleet capacity and operational capabilities through the planned induction of 11 modern dredgers announced during India Maritime Week 2025

Increasing participation in capital dredging, reclamation, inland waterways and coastal infrastructure development projects across Indian ports

Integrating e-governance and digital technologies across operations to improve efficiency and decision-making

Strengthening long-term business visibility through MoUs signed with major ports and maritime organisations during FY 2025–26

Expanding international presence through joint ventures with reputed global and chartering arrangements

Enhancing indigenous dredger construction and marine engineering capabilities under the Make in India initiative through collaborations with shipyards and engineering companies

Promoting training and recruitment activities to strengthen workforce capabilities

Improving project execution efficiency through advanced bathymetry surveys, fleet optimisation and technology integration

Performance

The capacity utilisation in number of days and quantity as against the targets during the year is as under:

Craft	Target	Actual	% Utilisation
No. of Days	2793	2332	83.49
Quantity (Mln. Cu.M)	512.50	508.23	99.17

Key Strengths

Strategic ownership by major ports

DCI is promoted by four major port authorities, providing stable access to maintenance, dredging contracts and improving long-term business visibility.

Established position in Indias dredging sector

TheCompanyoperatesoneofthecountryslargestdredging fleets, supporting maintenance dredging, reclamation, beach nourishment and coastal infrastructure projects.

Long operational track record

With more than four decades of experience, DCI has built strong technical expertise in executing complex marine assignments across major ports and naval projects.

Long-term fuel supply arrangement

During FY 2025–26, DCI entered into a INRINR2,157 crore fuel supply agreement with IOCL for a period of five years, supporting operational continuity and fleet deployment planning.

Growing alignment with maritime infrastructure expansion

Increasing investments in port modernisation, deeper draft requirements and coastal logistics continue to support long-term demand for dredging services.

Established presence in maintenance dredging

DCI continues to maintain a significant presence in recurring maintenance dredging activities at major Indian ports, supporting relatively stable business opportunities.

Diversification into emerging marine activities

Expansion in inland waterways, coastal protection and offshore-related marine activities is gradually broadening the Companys operational scope beyond conventional port dredging.

Technical capability in specialised marine operations

The Companys experience in navigational channel deepening and reclamation projects supports execution capability in technically demanding environments.

Weaknesses Ageing fleet profile

A part of the dredger fleet requires periodic refurbishment and dry-docking, leading to higher maintenance expenditure and operational downtime.

High operating dependence on fuel

Fuel continues to remain one of the largest operating costs for dredging activities, making profitability sensitive to fluctuations in energy prices.

Dependence on imported marine equipment

Reliance on imported spare parts and specialised equipment exposes operations to supply-chain delays and foreign exchange volatility.

Limited availability of specialised marine workforce

Availability of experienced dredging professionals and marine engineers continues to remain limited across the industry.

Project concentration in government-led infrastructure

A significant portion of the Companys business continues to be linked to projects awarded by port authorities and government maritime infrastructure programmes.

Long replacement cycle for dredgers

Procurement and commissioning of specialised dredgers involve substantial capital expenditure and extended delivery timelines.

Opportunities

Expansion of inland waterways

Government focus on inland water transport and fairway development is expected to create additional opportunities for channel maintenance and navigational dredging.

Increasing port deepening requirements

Rising cargo volumes and deployment of larger vessels are driving demand for deeper navigational channels at Indian ports.

Growth in coastal infrastructure projects

Coastal economic zones, port-linked industrial development and waterfront infrastructure projects may increase demand for dredging and reclamation activities.

Opportunities in offshore infrastructure

Offshore wind projects and subsea infrastructure development could create demand for specialised marine and seabed preparation services.

Rising focus on beach nourishment and coastal protection

Climate-related coastal erosion and shoreline protection initiatives are expected to support demand for beach nourishment activities in coastal regions.

Technology-led operational improvements

Adoption of fuel-efficient systems, monitoring technologies and fleet modernisation can improve vessel utilisation and reduce operational inefficiencies.

Potential expansion into higher-value marine services

Diversification into trenching, reclamation and offshore support activities could broaden revenue streams over the medium term.

Threats

Competition from international dredging companies

Global players with technologically advanced fleets and larger operational scale continue to intensify competition in major dredging projects.

Stringent environmental regulations

Increasing environmental scrutiny and sediment disposal norms may extend approval timelines and raise compliance-related expenditure.

Fuel price volatility

Any sustained increase in fuel prices may affect operating margins due to the fuel-intensive nature of dredging operations.

Weather-related operational disruptions

Cyclones, rough sea conditions and monsoon disruptions may affect project schedules and vessel utilisation levels.

Delays in infrastructure execution

Delays in project approvals, environmental clearances or public infrastructure spending may affect order inflows and execution timelines.

Pressure on margins from competitive bidding

Aggressive pricing by domestic and international competitors may impact profitability in large-value contracts.

Diversification in core businesses

Since its establishment on March 29, 1976, the corporation has provided dredging services at major ports, managing 89.6% of Indias maintenance dredging market share. The entity is expanding its core footprint through a Rs. 4,000 crore modernization initiative. Recent operations include the Rs. 2,015 crore maintenance contract for the Hooghly Estuary and the beach nourishment project at Visakhapatnam, which initiated its FY 2025–26 phase on March 10, 2026. The corporation targets a turnover of Rs. 3,000 crore in the next 5 to 10 years by scaling inland dredging and reservoir desiltation across multiple states. A Rs. 2,157.07 crore fuel supply agreement secures long-term operational requirements for a period of 5 years.

Diversification into new businesses⁴⁶

Expansion through forward and backward integration is enabling the corporation to enter higher-value maritime services, including port operations, marine construction, offshore installations, submarine cable trenching, offshore wind energy support, and desiltation of dams and reservoirs in Kerala, Maharashtra, and Odisha. The Company is also building expertise in subsea data cable trenching for projects linked to Google and Sify Technologies in Visakhapatnam, alongside planned entry into underwater mining and deep-sea exploration under the Blue Economy initiative. Backward integration includes shipbuilding and vessel repair through the planned induction of 11 new dredgers and project management consultancy for integrated dredging solutions. To support capacity expansion and acquisition of high-capacity vessels, the corporation proposed a rights issue of about INRINR1,000 crore, following a INRINR150 crore loan sanctioned by Sagarmala Finance Corporation Limited.

Fleets of the Company

Trailer Suction Hopper Dredgers (TSHD)

Dredger Name	Key Specifications
DCI Dredge VIII	Length – 124.30 M
Breadth – 19.50 M	Draft – 8.50 M
Speed – 13 knots
DCI Dredge XI	Length – 102.60 M
Breadth – 18.20 M	Draft – 7.50 M
Speed – 13.80 knots
DCI Dredge XII	Length – 110.31 M
Breadth – 21.00 M	Draft – 5.50 M
Speed – 13 knots
DCI Dredge XIV	Length – 110.31 M
Breadth – 21.00 M	Draft – 5.50 M
Speed – 13 knots
DCI Dredge XV	Length – 122.01 M
Breadth – 20.30 M	Draft – 8.50 M
Speed – 14.80 knots
DCI Dredge XVI	Length – 122.01 M
Breadth – 20.30 M	Draft – 8.50 M
Speed – 14.80 knots
DCI Dredge XVII	Length – 122.01 M
Breadth – 20.30 M	Draft – 8.50 M
Speed – 14.80 knots
DCI Dredge XIX	Length – 114.01 M
Breadth – 21.30 M	Draft – 7.50 M
Speed – 14.10 knots
DCI Dredge XXI	Length – 114.01 M
Breadth – 21.03 M	Draft – 7.50 M
Speed – 14.10 knots
DCI Dredge XX	Hopper Capacity – 5,500 M3
Propulsion Power – 2 ? 4,100 KW	Maximum dredging depth – 25.0 M
Official call sign – 3733 AVGY	Speed – 14.10 knots

Cutter Suction Dredgers (CSD)

Dredger Name	Key Specifications
DCI Dredge XVIII	Length – 88.00 M
Length between perpendiculars – 76.20 M	Breadth moulded – 16.00 M
Draft – 3.00 M	Depth moulded – 4.35 M

Ancillary Crafts

Dredger Name	Specifications
DCI Survey Launch – I	Overall Length – 12.5 M Breadth Moulded – 3.8 M Depth at Side – 1.85 M Speed – 9 knots
DCI Survey Launch – II & III	Overall Length – 16.0 M Breadth Moulded – 4.5 M Depth at Side – 2.49 M Speed – 9.8 knots
DCI Multicat – I	Overall Length – 32.003 M Breadth – 12 M Moulded Depth – 4 M Speed – 10 knots

Backhoe Dredger

Dredger Name	Specifications
Backhoe Dredger	Dredging Depth (Max) – 21.5 M Penetration Capacity (Max) – 90 tons Hourly Production Rate (Max) – 370 cu.m/hr
Inland Dredger
Dredger Name	Specifications
DCI ID Ganga	Gross Tonnage – 132 Net Tonnage – 40 Dredge Pump Engine – 1?1350 BHP @ 1900 rpm
	Cummins Engine Maximum Dredging Depth – 25.0 M Cutter Power – 180 KW Light Weight –
	206.93 Ton
Particulars	Details
Upcoming Fleet Expansion	DCI has initiated a major fleet modernisation programme with plans to procure 11 new dredgers over the next five years to strengthen dredging capacity and operational efficiency.
New Dredger Addition	The 12,000 CuM TSHD DCI Dredge Godavari is under construction and is expected to join the fleet during FY 2026–27.
Fleet Composition	As of March 31, 2026, DCIs fleet mainly consists of Trailer Suction Hopper Dredgers, Cutter Suction Dredgers, backhoe dredgers and ancillary crafts supporting maintenance and capital dredging operations across Indian ports.

Industrial relation

Industrial relations remained stable during FY 2025–26, supported by continued employee engagement, workforce training and effective operational coordination across shore and floating divisions.

Human Capital Development

DCI continued to strengthen workforce capabilities through technical training, marine skill development and operational safety initiatives aligned with evolving maritime requirements. Key focus areas during the year included advanced dredging operations, vessel maintenance practices, digital monitoring systems and specialised marine project execution.

The Company also increased its focus on workforce readiness for emerging opportunities in offshore services, ship repair and modern dredging technologies. Ongoing recruitment initiatives and project-linked manpower deployment continued to support operational continuity across key assignments.

The total number of employees (both Shore and Floating) in the Corporation, as on March 31, 2026, was as under:

Shore	168
Floating	368
Total	536

Number of employees as on the closure of the financial year

Female	32
Male	504
Transgender	0

Financial performance

The key financial performance (in INR Lakhs) of the Company for FY 2025–26 is mentioned below:

Particulars	FY 2026	FY 2025
Total Income	121409.84	1,14,797.30
Total Expenditure	120752.01	1,19,210.96
Profit after Tax	475.35	(2,745.67)
EPS	5.28	(12.07)
Operating profit margin	16.84%	12.33%
Net profit margin	0.39%	(2.40%)

Disclosure of Accounting Treatment

In the preparation of the financial statements for FY 2025–26, the Company has followed accounting treatments in compliance with the applicable Indian Accounting Standards (Ind AS).

Financial ratios

Details of key financial ratios and changes have been presented below. Explanations for significant variations, including changes of 25% or more compared to the previous financial year, have also been provided in accordance with the requirements of Sub-clause 1 of Part B under Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (as amended from time to time) [SEBI (LODR) Regulation, 2015].

Information regarding key financial ratios and changes therein is provided below:

Particulars	Numerator	Denominator	FY 2026	FY 2025	FY 2024
Current Ratio	Current Assets	Current Liabilities	95.84%	98%	78%
Debt-Equity Ratio	Long-term Debt	Total Equity	88%	76%	44%
Debt Service Coverage Ratio	EBITDA	Debt Obligation	93.77%	93%	96%
Return on Equity Ratio	PAT	Total Equity	0.39%	(2)%	3%
Inventory Turnover Ratio	Operational Income	Avg. Inventory	1557.35%	1682%	1621%
Debtors Turnover Ratio	Operational Income	Avg. Trade Receivables	990%	894%	1080%
Trade Payables Turnover Ratio	Operational Income	Avg. Trade Payables	1118%	936%	713%
Net Capital Turnover Ratio	Operational Income	Total Equity	98%	92%	75%
Net Profit Ratio	Total Comprehensive Income	Total Income	1%	(3)%	3%
Return on Capital Employed (ROCE)	PBIT	Capital Employed	2%	0%	3%
Return on Investment (ROI)	PBT	Capital Investment	0.40%	(3)%	3%
Interest Coverage Ratio	EBITDA	Interest	522%	386%	733%
Return on Net Worth Ratio	Net Income	Shareholders Equity	0.39%	(2.14)%	2.72%

Explanation for the change in Ratios of more than 25% as compared to the previous year

1. Return on Equity (RoE) The Return on Equity (RoE) improved significantly from (2.00%) in FY 2025 to 0.39% in FY 2026. The improvement was primarily attributable to the Company reporting a profit after tax during the current financial year as against a loss in the previous year. Consequently, the return generated on shareholders funds improved, resulting in a positive RoE.

2. Net Profit Ratio The Net Profit Ratio improved from (3.00%) in FY 2025 to 1.00% in FY 2026. This improvement was mainly due to enhanced operational performance and improved profitability during the year. Better cost management, coupled with improved revenue generation, contributed to the increase in net profit, thereby resulting in a positive Net Profit Ratio.

3. Return on Capital Employed (ROCE) The Return on Capital Employed (ROCE) increased from 0.00% in FY 2025 to 2.00% in FY 2026. The improvement was primarily driven by higher earnings before interest and tax (PBIT) during the year, reflecting better operational efficiency and more effective utilisation of the capital employed in the business.

4. Return on Investment (ROI) The Return on Investment (ROI) improved from (3.00%) in FY 2025 to 0.40% in FY 2026. The increase was mainly attributable to the improvement in profit before tax during the current financial year compared to the previous year. The positive financial performance resulted in better returns on the Companys investments and capital deployment.

5. Interest Coverage Ratio The Interest Coverage Ratio increased from 386% in FY 2025 to 522% in FY 2026. The improvement was primarily due to higher earnings before interest, taxes, depreciation and amortisation (EBITDA), which enhanced the Companys ability to meet its interest obligations. The ratio reflects the strengthened debt-servicing capacity of the Company during the year.

6. Trade Payables Turnover Ratio The Trade Payables Turnover Ratio increased from 936% in FY 2025 to 1,118% in FY 2026. The increase was mainly due to higher operational revenue and improved management of trade payables during the year. This indicates more efficient utilisation and settlement of trade payables in line with the Companys operating cycle.

7. Return on Net Worth Ratio : Return on Net Worth Ratio : The Companys Return on Net Worth improved significantly from (2.14%) in the previous year to 0.39% in the current year, indicating a turn around from a negative return to a marginal positive return. This improvement reflects better profitability and more efficient utilization of companys funds during the year.

Foreign exchange risk

The Company remains exposed to foreign exchange fluctuations due to import-dependent procurement, vessel-related expenses, foreign currency debt servicing obligations and overseas operational requirements. Adverse currency movements may impact project costs, profitability and cash flows.

Human Capital Risks

Availability and retention of skilled marine personnel, dredging specialists and technical workforce continue to remain important for uninterrupted project execution and fleet operations. Continued investment in workforce development, competitive benefits and a positive work environment remain essential.

Cybersecurity Risk

Increasing digital integration across vessel operations and monitoring systems has heightened exposure to cyber threats, system disruptions and data security risks. Strengthening cybersecurity measures remains important to protect operational assets and ensure business continuity.

Natural Disasters and Climate Risk

Extreme weather events, cyclones and rough sea conditions may impact dredging schedules, vessel deployment and coastal infrastructure operations, while also increasing the risk of operational disruptions and infrastructure damage.

Legal and Compliance Risks

The Companys operations remain subject to maritime regulations, environmental norms, port authority requirements and contractual compliance obligations. Adherence to applicable laws and regulatory requirements remains essential to avoid legal penalties, operational disruptions and reputational impact.

Health, Safety and Environmental (HSE) Risks

Marine operations involve operational and environmental risks, making strong safety systems, crew preparedness and environmental safeguards essential across projects and vessel operations.

Market Competition Risk

Competition from domestic and international dredging companies may impact pricing, project margins, and order inflows across key maritime segments.

Corporate Social Responsibility (CSR)

The Corporate Social Responsibility Policy of the Company continued to guide its social and community development and social impact initiatives during FY 2025–26. The CSR framework remains aligned with the Companys focus areas, including environment, education, healthcare, women empowerment, livelihood support and disaster management activities in and around its areas of operation.

The CSR Committee of the Board continued to review and monitor the implementation of CSR programmes and related sustainability initiatives undertaken by the Company in line with the provisions of the Companies Act, 2013. During the year, the Company also continued ESG awareness and risk-management training initiatives for employees and key management personnel.

The report on the Corporate Social Responsibility activities of the Company forms part of the Boards Report.

Risk management

Risk Management Policy

Implementation of a robust risk management framework remains essential for supporting the Companys operational activities and long-term sustainability. DCI has established a structured risk management process supported by a documented framework, internal control systems and defined operational procedures.

The Companys risk management policy seeks to ensure a systematic approach towards identifying, assessing, responding to, monitoring, and reporting risks to the management and the Board of Directors ("the Board"). The framework also promotes a common understanding and consistent methodology for effective risk evaluation and decision-making across the organisation.

Objectives of risk management

Provideasoundfoundationforgoodcorporategovernance

Strengthen the overall risk management and internal control framework

Protect and enhance stakeholder value

Promote greater awareness and accountability towards risk management

Encourage a structured and consultative approach towards risk assessment and mitigation

Risk Management Committee (RMC)

The RMC of the Company comprises key decision-makers responsible for overseeing the implementation of the risk management framework across the organisation. The members of the Committee are appointed by the Board in accordance with the requirements of the SEBI (LODR) Regulations.

The RMC regularly communicates key risk management initiatives to the Audit Committee and the Board of Directors. It also facilitates periodic reporting on risk management practices and related initiatives to relevant stakeholders.

Internal control systems and their adequacy

The Company maintains an internal control framework that is commensurate with size, scale and nature of operations. A well=defined delegation structure has been established across appropriate levels to support effective decision-making and operational oversight.

Comprehensive audits covering key operational and financial areas are conducted by an independent internal audit department. In addition, select assignments and certain portions of the Head Offices internal audit function are carried out through external chartered accounting firms. The Internal Audit Department periodically reviews the effectiveness of these controls and processes.

The Vigilance Department oversees disciplinary and vigilance-related matters with a continued focus on preventive measures and process integrity. The Company is also subject to proprietary audit by the Comptroller and Auditor General of India (C&AG).

An Audit Committee constituted by the Board regularly reviews significant audit observations and the corrective actions taken thereon. The outcome of Audit Committee meetings along with discussions of other Board-level committees, is periodically placed before the Board of Directors for review and guidance.

Cautionary statement

Statements on plans and expectations for the future are included in the report; terminology like ‘plans, ‘expects, ‘will, ‘anticipates, ‘believes, ‘intends, ‘projects, ‘estimates, and similar ones are frequently used. A variety of subjects are covered by these forward-looking statements, such as the Companys growth strategy, product development, market position, expenses and financial performance. The Company cannot guarantee that these statements are accurate or that future events will materialise, as they are predicated on assumptions and expectations. Actual results, output or accomplishments might not match projections. The Company is under no responsibility to publicly update or alter these statements in light of new developments, information or events unless required by law.