Garware Offshore Services Ltd (501848)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Garware Offshore's revenue was ₹11.8 Cr (+177.3% year on year, -5.6% on the previous quarter), and net profit ₹-2.9 Cr (a bigger loss than a year earlier); the operating margin was 35.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹11.8 | +177.3% | -5.6% |
| Operating profit | ₹4.1 | from loss | +51.5% |
| Net profit | ₹-2.9 | loss widened | loss narrowed |
| Operating margin | 35.1% | — | — |
📢 Recent Corporate Announcements
Garware Offshore Services has issued a demand notice under the Insolvency and Bankruptcy Code (IBC), 2016 to Afcons Infrastructure Limited for unpaid dues. The claim amounts to ₹3,04,59,761.44 principal plus interest, totalling ₹3,16,20,074.44 up to September 28, 2026. The dues stem from a 75-day charterparty agreement effective May 18, 2026, where Afcons allegedly defaulted on charter hire for July 2026, catering, and demobilisation fees. The total claim represents approximately 7.4% of Garware's TTM revenue of ₹43 crore, making recovery material for cash flows.
- Issued IBC demand notice to Afcons Infrastructure for an aggregate amount of ₹3,16,20,074.44 including interest up to September 28, 2026
- Base outstanding amount claimed is ₹3,04,59,761.44 relating to charter hire for July 2026, catering expenses, and demobilization fees
- Underlying Charterparty dated April 24, 2026 covered a 75-day vessel charter commencing May 18, 2026
- Total disputed amount of ~₹3.16 crore accounts for roughly 7.4% of Garware's TTM revenue of ₹43 crore
Garware Offshore Services has received trading approval from BSE Limited on August 21, 2026, for 27,000 equity shares. The shares, having a face value of Rs 10 each, were issued at a premium of Rs 82 per share (effective issue price of Rs 92 per share) to non-promoters following warrant conversions. Total consideration for this tranche stands at approximately Rs 0.25 crore, representing a negligible fraction (~0.11%) of the company's Rs 217 crore market capitalization.
- BSE granted trading approval for 27,000 equity shares via letter dated August 21, 2026.
- Shares carry a face value of Rs 10 each and were issued at a premium of Rs 82 per share.
- Issued to non-promoter warrant holders on a preferential basis.
- Distinctive numbers assigned are from 30743444 to 30770443.
Garware Offshore Services has commenced operations for one of its vessels under a long-term charter contract effective August 17, 2026. The contract spans a firm period of 4 years, with a client option to extend by an additional 1 year. This announcement follows the Letter of Award intimation from June 17, 2026. For a company operating a small fleet with TTM revenue of Rs 43 Cr, operationalizing this vessel secures multi-year utilization and revenue visibility.
- Charter tenure: 4 years firm with an extension option of 1 year
- Commencement date: August 17, 2026
- Vessels deployed: 1 vessel
- Follow-up to Letter of Award intimation dated June 17, 2026
Garware Offshore Services has received listing approval for 27,000 equity shares issued to non-promoters. The shares were issued at a price of Rs 92 each (Rs 10 face value plus Rs 82 premium) following the conversion of warrants. The total value of this specific issuance is approximately Rs 0.25 crore, representing a negligible 0.16% of the company's current market capitalization of Rs 156 crore. This is a procedural step in completing a previously initiated preferential issue.
- Listing approval received for 27,000 equity shares of Rs 10 face value each
- Shares issued at a premium of Rs 82 per share, totaling Rs 92 per share
- Total capital infusion in this tranche is approximately Rs 0.25 crore
- Issuance made to non-promoters pursuant to the conversion of warrants
- Approval letter No. LOD/PREF/AA/FIP/630/2026-27 dated August 11, 2026
Garware Offshore reported a sharp recovery in consolidated revenue to ₹11.79 Cr for Q1 FY27, up from ₹4.25 Cr in Q1 FY26, representing approximately 33% of its total FY26 revenue in a single quarter. Despite the top-line growth, the company remains loss-making with a net loss of ₹2.87 Cr, primarily due to high depreciation (₹5.61 Cr) and fleet operating costs. A significant positive is the receipt of a Letter of Award for a 4-year firm contract (plus 1-year extension) for one vessel, providing long-term revenue visibility. Additionally, the company converted 27,000 warrants into equity at ₹69 per share.
- Consolidated revenue increased 177% YoY to ₹11.79 Cr in Q1 FY27.
- Secured a Letter of Award for a vessel charter for a firm period of 4 years plus a 1-year extension.
- Net loss widened to ₹2.87 Cr in Q1 FY27 from a loss of ₹1.90 Cr in Q1 FY26.
- Fleet operating expenses rose 57% YoY to ₹5.44 Cr.
- Converted 27,000 warrants at ₹69 each, increasing paid-up capital to ₹30.77 Cr.
Garware Offshore Services has scheduled a board meeting for August 10, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. The company is coming off a difficult FY26 where it reported a net loss of ₹9.29 crore despite a revenue of ₹35.72 crore. Investors will be watching for a turnaround in profitability, especially after the March 2026 quarter saw a significant net loss of ₹5.58 crore. The company's debt levels remain high at ₹65 crore relative to its ₹36 crore TTM revenue.
- Board meeting scheduled for August 10, 2026, to review Q1 FY27 performance
- Company reported a TTM net loss of ₹9 crore as of the latest available data
- Debt-to-Equity ratio stands at 0.52 with total debt of ₹65 crore
- TTM revenue is currently ₹36 crore, reflecting a small-cap scale of operations
- Promoter holding has remained stable at approximately 30.34% as of June 2026
Financial Performance
Revenue Growth by Segment
Revenue from offshore support operations decreased by 16.48% YoY, falling from INR 39.21 Cr in FY24 to INR 32.75 Cr in FY25.
Geographic Revenue Split
The company has shifted its focus from international waters to predominantly Indian operations, with its current fleet operating entirely in India as of late 2025.
Profitability Margins
The company reported a Profit Before Tax of INR 3.73 Cr in FY25, a significant 90.59% decrease from INR 39.65 Cr in FY24, which was heavily inflated by a one-time gain of INR 46.88 Cr from deconsolidation. Excluding exceptional items, the operating loss narrowed from INR 14.21 Cr to INR 9.29 Cr.
EBITDA Margin
Core operating profitability improved as Fleet Operating Expenses were reduced by 41.83% YoY to INR 15.20 Cr, though the company still faced an operating loss before exceptional items of INR 9.29 Cr.
Capital Expenditure
The company recently acquired a 2006-built 80 Tons BP DP2 vessel (M.V. Mahanadi) for which it took a debt of INR 36.40 Cr.
Credit Rating & Borrowing
Total debt stood at INR 52.46 Cr as of June 2025, which includes INR 36.40 Cr for the new vessel acquisition. Finance costs decreased by 67.87% YoY to INR 1.93 Cr following a comprehensive debt restructuring.
Operational Drivers
Raw Materials
Not a manufacturing entity; primary operational costs are Fleet Operating Expenses (46.4% of revenue) and Employee Benefits (11.6% of revenue).
Import Sources
Not applicable as the company provides offshore services; however, vessels operate in Indian territorial waters.
Key Suppliers
Not disclosed, but primary costs involve vessel maintenance, fuel, and crewing services.
Capacity Expansion
Current fleet consists of 2 vessels (M.V. Kamet and M.V. Mahananda) with 1 additional vessel (M.V. Mahanadi) acquired and scheduled to commence contract in September 2025.
Raw Material Costs
Fleet operating expenses decreased by 41.83% to INR 15.20 Cr in FY25, down from INR 26.12 Cr in FY24, reflecting a leaner operational structure post-restructuring.
Manufacturing Efficiency
Vessel utilization is the key metric; M.V. Kamet and M.V. Mahananda are on active contracts, with M.V. Mahanadi starting in Q3 FY26.
Logistics & Distribution
Not applicable; revenue is generated via time charter arrangements where the vessel is the service delivery point.
Strategic Growth
Expected Growth Rate
15-20%
Growth Strategy
The company is transitioning back to growth by acquiring new assets like the 80-ton BP DP2 vessel and securing long-term (up to 5 years) term contracts to guarantee liquidity and positive EBITDA. It is also exploring the renewable energy sector, specifically supporting offshore wind farms.
Products & Services
Time charter of Offshore Support Vessels (OSVs), specifically Anchor Handling Tug Supply Vessels (AHTSVs) and Platform Supply Vessels (PSVs).
Brand Portfolio
Global Offshore Services Limited (reverting to Garware Offshore Services Limited).
New Products/Services
Expansion into supporting offshore wind farms using existing OSV capabilities to diversify away from pure oil and gas exploration.
Market Expansion
Re-focusing on the Indian market after reducing international exposure; proposing a name change to reflect this domestic focus.
Market Share & Ranking
One of the oldest OSV companies in India with over 40 years of experience.
Strategic Alliances
Technical and commercial management is handled through Garware Offshore International Services Pte Ltd, Singapore.
External Factors
Industry Trends
The offshore industry is seeing a recovery with rig demand increasing and a shortage of new OSVs due to limited building in recent years; the industry is also pivoting toward renewable energy support.
Competitive Landscape
Competes with domestic and international OSV operators for contracts from E&P companies like ONGC and Vedanta.
Competitive Moat
Moat is built on a 40-year track record, deep relationships with PSUs like ONGC, and a fully restructured balance sheet with net debt under USD 2 million prior to new acquisitions.
Macro Economic Sensitivity
Highly sensitive to global oil prices and E&P (Exploration and Production) spending by major oil companies.
Consumer Behavior
Shift in E&P company preference toward vessels with higher technical specifications (DP2) and better safety records.
Geopolitical Risks
Trade barriers are minimal, but international operations were previously impacted by regional market dynamics in Brazil and the North Sea.
Regulatory & Governance
Industry Regulations
Subject to maritime regulations and stringent offshore market standards (e.g., North Sea regulations).
Environmental Compliance
Compliance with HSSE (Health, Safety, Security, and Environment) standards is critical for North Sea and ONGC operations.
Taxation Policy Impact
The company operates under Indian corporate tax laws; deferred tax assets/liabilities are adjusted in the consolidated statements.
Legal Contingencies
A qualified opinion was issued regarding a loan payable to third parties amounting to INR 7.71 Cr (USD 901,921) due to lack of sufficient audit evidence.
Risk Analysis
Key Uncertainties
The subsidiary Garware Offshore International Services Pte. Ltd. has a negative net worth of INR 9.35 Cr, casting doubt on its ability to continue as a going concern.
Geographic Concentration Risk
High concentration in India (100% of current fleet operations).
Third Party Dependencies
Dependency on E&P companies' capital expenditure budgets and tender timelines.
Technology Obsolescence Risk
Risk of older vessels (e.g., 2006 built) becoming less competitive against newer, more fuel-efficient DP3 vessels.
Credit & Counterparty Risk
Trade receivables write-back of INR 13.81 Cr in FY25 indicates past volatility in collections, though current clients are major reputable firms.
