Care Edge Ratings Reaffirms Credit Rating for Dredging Corporation of India Limited

Care Edge Ratings Reaffirms Credit Rating for Dredging Corporation of India Limited​

Care Edge Ratings has reaffirmed the credit ratings for Dredging Corporation of India Limited (DCIL). The rating report, dated April 8, 2026, details the company's financial standing and operational strengths as it continues to modernize its assets and bolster its order book.

Credit Ratings Snapshot​

The ratings provided to DCIL for its major facilities have been reaffirmed by the rating agency. The details are presented below:


The rating reaffirms the company's status across long term and short term bank facilities.

Operational Strengths and Financial Performance​

DCIL continues to leverage its deep industry experience, boasting nearly five decades in providing dredging services. A key strength highlighted by Care Edge Ratings is the company's strong parentage, derived from a consortium of four major port trusts: Visakhapatnam Port Trust (VPT), Paradip Port Trust (PPT), Jawaharlal Nehru Port Trust (JNPT), and Deendayal Port Trust (DPT). These ports hold a collective 73.47% equity stake in DCIL, and the trusts operate under the direct administrative control of the Ministry of Shipping.

The company’s order book remains a significant factor, with the total order book standing at ₹422 crore as of September 30, 2025, suggesting revenue visibility for approximately 1.25 years. Furthermore, DCIL is undertaking substantial capacity enhancement through new acquisitions. The company has an agreement with Cochin Shipyard Limited (CSL) for the construction of a new Trailing Suction Hopper Dredger (TSHD) with a capacity of 12,000 cubic metres. This new dredger is expected to be commissioned by October 2026, set to significantly improve capacity utilization and enhance the company's overall scale.

Financially, DCIL demonstrated significant growth in its revenue base. Total operating income increased from ₹945 crore in FY24 to ₹1,142 crore in FY25. While revenue moderated to ₹730 crore in 9MFY26 from ₹680 crore in 9MFY25, the company maintains a steady growth trajectory.

For comparison, key financial metrics show:


*PBILDT: Profit before interest, lease rentals, depreciation and tax.

Key Rating Drivers and Risks​

Strengths:
The rating report attributes strength to DCIL’s long track record, growing order book, and robust support from its promoters. The promoters have provided an aggregate of ₹342 crore in unsecured loans between FY23 and FY26, funding the acquisition of the new dredger and settling aged trade payables. The company also has the expertise to undertake capital dredging for deepening harbors, alongside its primary focus on maintenance dredging along India's extensive coastline.

Weaknesses and Risks:
The ratings also note several inherent risks. DCIL's dredging fleet has an average age exceeding 23 years, potentially leading to higher maintenance expenses and lower productivity. Furthermore, the company faces exposure to foreign exchange risk due to Euro denominated loans and its reliance on imported components. Profitability was notably impacted in FY25 and H1FY26 due to the levy of liquidated damages and foreign exchange losses.

The outlook for DCIL remains stable, reflecting the satisfactory order book position and continued support expected from the promoters, which helps maintain the company's liquidity and supports its operational goals.

DREDGECORP Stock Price Movement​

Shares of Dredging Corporation of India Limited are currently rallying, hitting ₹904 as of 2:57 PM, up 1.21% or ₹10.80 in live trading. This positive momentum is supported by high interest, with the stock recording a total traded volume of 155,314 shares today.

Source:​