Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Seamec Ltd (NSE: SEAMECLTD) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Naveen Mohta — Whole-Time Director
Vinay Kumar Agarwal — Chief Financial Officer
Sunil Gupta — Vice President, Strategy, Head of Investors Relations
Analysts:
Balasubramanian — Analyst
Unidentified Participant
Rohan Baranwal — Analyst
Abu Rafi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the CMAC Limited Q4FY26 earning conference call. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during the conference call please. Please signal an operator by pressing Star then zero on your Touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Balasu Pramanyam from Aryan Capital.
Thank you. And over to you sir.
Balasubramanian — Analyst
Thank you Julius. Good evening everyone. On behalf of Arant Capital I welcome you to the earnings of CMAC Limited Q4FY26. Concurrent from the management side today we have Mr. Naveen Mokta whole time director. Mr. Vinay Kumar Agarwal, CFO and Mr. Sunil Gupta, VP Strategy and Investor Relations. We welcome the management of CMAC. On this call now I. I invite Mr. Naveen Moktasar to give his opening remarks following which he will open the floor for Q and A. Over to you sir.
Naveen Mohta — Whole-Time Director
Thank you Vala. Good afternoon ladies and gentlemen. On behalf of cmec, I extend a warm welcome to all the participants joining us today for our Q4 and FY26 earning call. Thank you for taking the time to be with us. FY26 has been a defining year not just only for CMEP but for the broader offshore energy sector. We are operating at the intersection of powerful global forces which are reshaping energy security priorities worldwide and CMEC is extraordinarily well positioned to benefit. The ongoing conflict in West Asia has fundamentally altered how nations think about energy security.
Sea routes which were once taken for granted are now contested prompting a structural long term acceleration in domestic exploration and production activities. Simultaneously, strategic global oil reserves are being depleted faster than they are being replenished making offshore exploration no longer a discretionary investment but a strategic necessity. India illustrates this trend compellingly. The government has reduced royalty burden on oil and gas producers, reaffirmed plans to expand refining capacity beyond 300 mm TPA and continue advancing offshore exploration through its open acreage licensing policy.
In a landmark development, ONGC appointed British Petroleum as technical services provider for the Mumbai High field. A clear signal of India’s intent to enhance recovery from its most strategic offshore basin. India’s growing crude import dependency not only creates strategic vulnerability but also exposes the economy to global price shocks and rupee depreciation pressure, making domestic energy expansion economically critical. The key beneficiaries are companies with fleet strength, offshore execution capabilities and established client relationships.
Companies like Cemex. I am proud to report CMEC’s highest ever annual revenue and profitability in financial year 26 which is achieved through strong operational execution, higher fleet deployment, improved vessel utilization and disciplined project delivery across domestic and international markets. The key highlights include successful completion of the turnkey revamping of ONGC Neelam 9 platform using MV Goodman demonstrating our end to end offshore execution capabilities integration and commencement of operation of CMAC Agastya, meaningfully strengthening our fleet.
Two significant O and M contracts in consortium with Supreme Hydro Private Limited a notification of award for MSC Samudu Prabha and Samudu Sevak, both covering 2026 till 2028, substantially strengthening long term revenue visibility. We also maintain a good presence in Saudi Arabia for almost a year now. I’m happy to mention that client and end client are quite happy with our product delivery. Needless to mention that such happy clients are precursor to not only more closer cooperation with such clients but also provides a springboard for expanding the operation with newer clients.
The offshore sector is entering a period of sustained investment, expansion in subsea infrastructure, brownfield upgrade, deep water exploration and product enhancement. The global energy transition is accelerating near term investment in domestic production as nation seek affordable energy during the transition period. We enter financial year 27th with strong order visibility and operationally primed fleet and a team that has proven it can deliver through cycles. The opportunity landscape ahead is as favorable as it has ever been and we are ready to make the most of it.
Just one caution looking at the geopolitical scenario. One of our vessels, CMAC Paladin, sailed off to Dubai for completing its dry dock. However, due to the ongoing war in West Asia, it continued to remain standard in the yard until state of pharmacy is opened for navigation for all without any risk given cmx limited exposure to offshore oil field services, prolonged instability or a broader regional conflict could affect contractual exhibition timelines, asset deployment, operating cost and overall business viability.
While elevated energy prices may support long term offshore activity, near term disruptions and heightened geopolitical risk warrant cruise monitoring. With that I would like to thank everyone again for joining us today. I will now hand over the call to Mr. Vinay Agarwal, our CFO who will take you through a detailed overview of our financial performance for the Q4. Over to you Vinay.
Vinay Kumar Agarwal — Chief Financial Officer
Thank you Navinji. Good afternoon everyone. I warmly welcome all participants to our Q4 and full year FY26 earning call. I will take you through the key highlights of our standalone and consolidated financial performance for the fourth quarter and the financial year ended. FY26 Financial Performance Q4 FY26 On a consolidated basis, revenue for the quarter stood at rupees three hundred and thirty crores compared to rupees two hundred and nine crore in quarter four FY25, reflecting a year on year increase of 58%.
At the standard alone level, revenue stood at rupees three hundred and fifteen crore as against rupees two hundred and seven crore in the corresponding quarter of the previous year, showing a year on year growth of 53%. EBITDA at the consolidated level stood at Rupees 162 crore in Q4FY26 compared to Rupees 91 crore in Quarter 4FY25. On a standalone basis, EBITDA stood at Rupees 138 crores versus Rupees 105 crores in Quarter 4 FY25. Strong vessel deployment, improved fleet utilization and efficient execution across project contributed to the healthy operational performance during the quarter.
Profit after tax on a consolidated basis stood at rupees 103 crores compared to rupees 41 crores in the same quarter last year. At the standalone level, Cash stood at Rupees 87 crores versus Rupees 58.8 crores in Q4FY25. Financial performance for the year ended March 26. For the full year FY26 consolidated revenue stood at Rupees thousand crores compared to Rupees 682 crores in last year reflecting a year on year growth of 47%. At the standalone level, revenue for FY26 stood at Rupees 947.5 crore as against Rupees 660 crore in FY25.
Consolidated EBITDA for FY26 stood at Rupees 447 crore compared to Rupees 244 crores in FY25. On a standalone basis, EBITDA stood at Rupees 407 crore because is Rupee 264 crores in FY25. Pay for FY26 at the consolidated level stood at Rupees 253 crore compared to Rupees 88 crore in FY25. At the standalone level, CAT stood at Rupees 242.4 crore compared to Rupees 115.6 crore in the previous financial year, Roce and Roee stood out to be at 18% and 19% respectively. At the consolidated level. With continued support from our stakeholders, we remain confident about sustaining our growth momentum and strengthening our operational performance in coming years.
With that, I would now like to open the floor for question and answer. Thank you.
Questions and Answers:
Operator
Thank you. We’ll now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Raheel Dasani from mapl. Please go ahead.
Unidentified Participant
I’m audible.
Rohan Baranwal
Yes.
Operator
Yes sir, you are.
Unidentified Participant
Yeah, it’s Ayan Duthani first of all, sir, good afternoon. Thank you for this opportunity and congratulations on a great set of numbers. My list of questions is around our offshore shipping segment particularly to start with, if you can maybe share more about the charter rate cycle we are currently in the understanding that I am getting is that there is a demand supply gap. The ship building is low and also the age of vessels in use is very high and the charter rates have increased a lot. So maybe if you can share more on this and where are we in the cycle?
Sunil Gupta
Let me give you a background. We are operating diving support vessels
Unidentified Participant
Which
Sunil Gupta
Are mainly on the long term contract and during the tenancy of the contract which is three to five years, the remainder, the rate remains firm. Then there are few contracts which are spot contracts where the rate fluctuates depending on the demand supply.
Unidentified Participant
Yes.
Sunil Gupta
While we acknowledge the fact that yes, the market conditions are buoyant but large part of the business is protected or blocked because they are working on a long term contract. We believe that going forward, as you rightly said, the availability of vessels will remain a constraint and. And therefore the market should remain buoyant.
Unidentified Participant
Okay, maybe if you can share a bit more specific course. 2022, we saw the charter rates doubling year on year. Is that sort of growth still continuing or has it slowed down or have we started seeing some sort of rates?
Naveen Mohta
Okay, no. So the market definite has been quite buoyant as you can see, as is also evident from the numbers. But it is not that much buoyant. And I wish, whatever you are saying that okay, rates have doubled. I wish it would have happened. That would have been. We would have been given some More terrific number, set of numbers for that. Yes, market is buoyant and we are seeing that. Okay, maybe for another couple of years. We will definitely continue to see these buoyancy in the market where rate will continue to increase.
May not be at what we call that it will increase at the Hindu rate of growth.
Unidentified Participant
Got it. If I were to ask another specific question. What would be the latest daily charter rate of our vessel diamond if we were to lease it today?
Naveen Mohta
So diamond is a vessel which, which is a supply vessel, which is a typical offshore supply vessel and it is on charter with ONGC. So that that contract is getting us somewhere around $8100 or $200 a day. And going forward, when this contract comes up for renewal, we are looking at increase of maybe around 10 to 15%, maybe possible at that point of time depending upon demand and supply.
Unidentified Participant
Got it? Clear. And just to understand the demand perspective better, ongc, Reliance, et cetera, have a lot of incoming projects. If I were to go specific, 10 development wells by ONGC, the PRP 9 project, also the Reliance KGD 6 block plus also the general offshore wind and port construction demand. So what sort of offshore vessels demand are we seeing across psv, msv, osv, dsv? If you can quantify numbers, I know it would be very difficult, but approximate, if you can give me in the next two to three years what sort of vessel quantum demand we are seeing?
Is it 20 vessels, 50 vessels, 100 vessels?
Naveen Mohta
Oh, see we are into the niche segment of diving support vessel. We are not into mostly into offshore vessel. Of course we have the CMAC diamond, which is offshore the support vessel. But this you can consider as an aberration only. So we have got this one offshore supply vessel, but we are into this diving support vessel which is a period of predominant business and there is a demand for these vessels. As you mentioned rightly that PRP9 projects are there and some more projects are there, but the demand is quite balanced kind of demand.
So there is just shortage of maybe one vessel here and there over a season of time because these vessels are not required in that kind of number like supply vessels. So it is a almost a very good equilibrium kind of thing that okay, whatever, the vessels are available and demand is almost like that only. So if there is any some kind of shortage is there, then only vessels are required from outside. So it is fairly balanced right now.
Unidentified Participant
Got it. But again, sorry if I’m going too specific, but I’m just trying to understand this whole industry and also how should we benefit as CMAC As a company, if I were to pick up ongc, for example, in your presentation you shared that they have done nine new discoveries in 2025. So if I were to understand, would per discovery be requiring one to two vessels or can it be much more than that? I’m just trying to gauge a number.
Sunil Gupta
So I’ll tell you. Let’s understand the business. We are neither in the process of identifying the oil wells, neither exploring. Okay. Our job comes the last. Once the discoveries are done, the wells have been established, the exploration has started, then we come as a partner for imr, which is inspection maintenance and. And then we stay till the last. Okay. Today, depending on how the discoveries are made, what is the infrastructure that is laid for exploration that will hide what is the quantum of vessels that we operate will be required.
Unidentified Participant
Okay, got it. And are we seeing increased competition and tenders for these vessels now or still the bidders are few and same as before
Naveen Mohta
Competition as usual, it is there. You. You can’t get the work on monopoly basis. So completion will always be there. Because whoever want the services, they will like. Are we
Unidentified Participant
Seeing new competitors trying to come in buying new vessels? Are we seeing new competitors?
Naveen Mohta
There are no new competitors. As I told you earlier also that. Okay. It is fairly balanced just now. The demand and supply are being meshed quite fairly. So there are no new competitor.
Unidentified Participant
Okay.
Operator
Sorry for interrupting. Mr. Sahil. Please rejoin the queue for more question. A reminder to all participants. Please restrict yourself to two question. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Rohan Mehta, individual investor. Please go ahead.
Rohan Baranwal
Hello. Yeah, good afternoon. Thank you for the opportunity. Sir, I just wanted to ask about the vessel utilization levels in terms of how these have been during this year and what can be expected for the next year. FY27.
Sunil Gupta
See, the vessel utilization as such is almost 100% dependent barring of hires which happened due to dry dock and unscheduled breakdowns. Okay. And depending on the seasonal availability of the contract, you would have seen the announcements. We have added new business which will definitely improve the top line by around 15% in the going forward. Period.
Rohan Baranwal
Okay, got it, sir. And sir, are there any partnerships or JVs or anything like that on the horizon in terms of our maybe even offshore engineering opportunities?
Sunil Gupta
Rohan, right now we would not like to speculate anything in case something happens. Definitely we’ll make an announcement towards that.
Rohan Baranwal
Got it. And so if you could give some light on and your opinion on the overall global energy security concerns with the geopolitical tensions and everything. How that’s affecting our business and what to expect over the next couple of quarters.
Sunil Gupta
While the entire geopolitical situation has made it clear that with 15% in house production India cannot survive. And hence India has to be more self reliant in energy sector as well. Which will definitely create lot of business opportunities for CMAC and companies which are prevalent in energy sector. How things will shape up, probably after this whole episode settles down, things will be more clearer.
Rohan Baranwal
Understood, sir. Just lastly, are you seeing any pricing pressure or you know, pressure from competition when we are bidding for offshore contracts?
Sunil Gupta
No, not right now.
Rohan Baranwal
Okay. Okay. Any guidance that you might like to give for the next year in terms of top line or margin? Well,
Sunil Gupta
I already said that we are expecting about 15% growth in top line and bottom line next year.
Rohan Baranwal
Okay. Okay. Great. Thank you. Thanks sir. Thanks for taking my questions and all the best.
Operator
Thank you. The next question is from the line of Abu Rafi from well Cat basis. Please go ahead.
Abu Rafi
Thank you for the opportunity. First I would like to congratulate the team on strong yearly performance. So I have few questions. The first one being regarding the two O&M contracts awarded from ONGC. It is in consortium with Supreme Hydro. So my question is have both the contracts coming to operations and also could management clarify the revenue profit sharing with Supreme Hydro.
Naveen Mohta
Okay, so if you are monitoring the announcement on the spot scene that we are making. So Samudra Sevak has already been taken over and it has started working. And same with the Samudra Prabha also which has been taken over in May. And for operational reason it is just now in Mumbai getting all this changeover done. And by most likely by first week of June or something it will she will go into the contract work and will start as near the day rate. And as far as.
Abu Rafi
Could you tell about the profit sharing, sir.
Naveen Mohta
So the share of this supreme is around 10% into the consortium.
Abu Rafi
What. What scope of services are being provided by Supreme Hydro?
Naveen Mohta
They. They are providing us the technical know how along with their manuals and some personnel.
Abu Rafi
All right sir. My next question is for FY27 vessels like CMIC Swordfish and CMIC Agastya are expected to contribute for the full year versus partial deployment. That was last year. While CMIC Anand is also likely to commence operations soon. And along with the two ONGC ONM contracts that we just talked about. Would it be fair to expect an incremental revenue contribution of roughly 500 crores. And if so then the revenue guidance for the Next year of just 15% is in my opinion it would be. We would be doing much more than that.
Is my. Is my assumption correct?
Sunil Gupta
Sir, your assumption is not right. And I would not like to comment further beyond 15%. See, there are a lot of business decisions. Timings. Like you would know that CMAC Paladin is still in Dubai. Not operating. Okay. CMAC2 is operating only till August 2020. So I have given a guidance and I think the rest working you can do yourself.
Abu Rafi
So my final question would be. Are we currently in discussions for additional OM contracts with ONGC or major other companies?
Sunil Gupta
See, as and when we get new contracts you will the first person on stock exchange to be known.
Abu Rafi
So. So one last question. When can we expect the deployment of finance?
Sunil Gupta
There are two, three things that are creating a hindrance. Because our Paladin is right now not in operations, not doing the business. If the Anant movement happens again, it will also go out of field for some time. Which ONGC will not permit. There are some more complications. So we see one more quarter. Maybe by the time Anand will come to our fleet.
Unidentified Participant
All
Abu Rafi
Right, sir. Thank you.
Sunil Gupta
Thank you.
Operator
Thank you. The next question is from the line of Nishita Shanklesha from Sapphire Capital. Please go ahead.
Unidentified Participant
Yes, hello. I just had one question. In FY27, do we plan to procure any more vessels?
Naveen Mohta
Yeah. See there are some information already which is known to everyone that CMAC Anant. We have already told that. Okay. We will be acquiring. So that is already a known fact to everybody. Apart from that this we continue to look for suitable unit as and when we find something which is going to add value to the stakeholders. So definitely we will be going for the declaration. But right now nothing is specific or specified in the pipeline.
Unidentified Participant
Okay. And the funding of that will be done from internal accruals only.
Naveen Mohta
Again that is a no. Depending upon the transaction and whatever is best for the stakeholder that will be done.
Unidentified Participant
Okay. Okay. And what is the total apex amount that we done in FY26 and the amount that we plan to do in FY27.
Sunil Gupta
So we have done about 300 crores capex in FY26. In FY27. As Naveenji just mentioned, the Anant is roughly about $70 million. Which is the scheduled capex.
Unidentified Participant
Okay. Thank you so much.
Operator
Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Tejas. An individual investor. Please go ahead.
Unidentified Participant
Am I audible?
Operator
Yes sir, you are. Please go ahead.
Unidentified Participant
Yeah. Thank you for the opportunity and congratulations for a good set of numbers to you and your team. Sir, just to take from the previous participants said. So you said that save a Samudram prava. Our share is 90%. Is that the correct understanding? Did I hear it correctly?
Naveen Mohta
Yeah. So what we have mentioned is already that 10% of the consortium share is there. But then there will be subcontracting cost and other cost and all those things will be there. But yes, technically what you heard is correct.
Unidentified Participant
Okay. And sir, how is this payment? Is it like milestone based or like. We will get billing quarterly because the value 348 and 270cr and it’s more than two years. Roughly two years contract. So how do you get the payments for these?
Naveen Mohta
Payment is same like our other vessel. So it is on monthly basis. So we build to on GC at the end of the month. And as for the agreed payment term, they make the payment to us.
Unidentified Participant
Okay. So it is divided like equally if I understand correctly, per month, the amount. Yeah, roughly
Naveen Mohta
Correct.
Unidentified Participant
Okay. And sir, you mentioned that obviously Paladin is still stuck in Dubai. What about Princess? Because I believe the princess offers from the 21st of April. So that is still remains unhide. Is that understanding correct?
Naveen Mohta
No, no, no. The Princess was offered for the specific segment of work which has. Which we have contacted in between. But broader contact with LNT is continuing and the vessel is still working
Unidentified Participant
And that continues the previous old rate. The charter rate of Princess.
Naveen Mohta
Can
Unidentified Participant
You confirm CMAC diamonds rate that we have offered? The current rate that you’re offering diamond that
Naveen Mohta
There has been no change from the declaration which was made at the time of commencement of the contract. So there is no change of that. So
Vinay Kumar Agarwal
To be very specific, this is 800-7500.
Unidentified Participant
Sorry sir, can you. I’m not able to hear you. Can you come back again?
Vinay Kumar Agarwal
8770.
Unidentified Participant
Okay. Okay. Thank you so much.
Vinay Kumar Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Mahesh Kumar from MU Investment. Please go ahead.
Unidentified Participant
Hello. So I’m audible. Thank you for the opportunity sir.
Rohan Baranwal
Thank you.
Unidentified Participant
So I have. I had few questions. Three questions. First on the revenue and the ebitda. So we have. We had a very good, you know strong revenue in FY26 around 682 crores. 2000 crores and EBITDA margin have also improved nearly 5 45%. Should like as an investor, should we see this earnings level like sustainable earnings level. And can margin fluctuate depending on the vessel deployment and the dry docking schedules?
Sunil Gupta
See, while we gave a guidance that we should be doing about 15% growth in revenue, the margin should be in the range of 40 to 42%.
Unidentified Participant
Okay, okay. And recently like we acquired CMAC Agastya and also looking for acquisition of cmac. And how much additional revenue potential can these vessels generate and what utilization level are you targeting, you know, over the next two, three years.
Sunil Gupta
See, both the vessels are already on charter with ONGC. So deployment will not be issue. Depending on when CMAC Anand comes to CMAC’s for fold will clarify the potential of revenue. And Agasta is doing full revenue next year, that is for sure.
Unidentified Participant
Okay, okay,
Sunil Gupta
Okay.
Unidentified Participant
And lastly, so what percentage of revenue currently comes from, you know, international markets? And how do you plan to diversify the client base further in region like Middle East?
Sunil Gupta
About 10 to 15% is the revenue that comes from international market. And definitely depending on the vessel availability, we would like to tap that market.
Unidentified Participant
Okay,
Operator
Sir, that’s it from my side. Thank you so much. Thank
Sunil Gupta
You sir.
Operator
Thank you. The next question is from the line of Rishi Kothari from Capital Bridge Advisor. Please go ahead.
Unidentified Participant
Thank you so much for the opportunity. Just wanted to know in terms of the growth that we are expecting for next year, what sort of risk that could hinder our growth, what potential risk that management see in terms of business for us? Because of course the industry that we are involved in is pretty much volatile in nature. Right. So what risk factor we have considered for the business?
Sunil Gupta
See there, there is a war that’s going on for last three years. There is a new escalation that has happened recently. We don’t know what will happen. One of the vessel is stuck in Dubai. Depending on how this situation percolates, this can be a risk. There is another vessel which is right now running profitability in Saudi Aramco. If situation aggravates, that can be a risk. Other than that we generally do not see any major risk or there can be a risk of rupee strengthening.
Unidentified Participant
In terms of business understanding, just want to confirm that post. Any sort of oil and gas companies have actually discovered the oil or in the oil fields. Correct. Post that. Whatever sort of extraction part comes into, that’s where we as a business come in. Correct for them.
Naveen Mohta
Yeah, correct.
Unidentified Participant
So that’s where we are businesses. We post discovery and everything for extracting, you know, oil maintenance and everything. That’s where they hire operators.
Naveen Mohta
Sorry, your voice is not coming clear. So I’m not able to understand the query
Unidentified Participant
Audible properly now.
Naveen Mohta
Yeah, now it is much better.
Unidentified Participant
Yeah, just Just want to be understand that oil and gas company actually explodes the oil in the oil fields. Right post that when it comes to extraction and maintenance of that oil, that’s where our vessels come into picture as a business for them.
Naveen Mohta
Correct? Correct.
Unidentified Participant
Okay. And do we. We don’t see any sort of risk related to business processor. If at all. If at all. I look at the competitive landscape. Are there any other companies involved in the same business?
Naveen Mohta
We don’t look at any kind of risk right now. And apart from see we are one of the largest ship owner of these diving support vessels. And as far as others are concerned, they are like one vessel owner or two vessel owner kind of companies are there. So we got the biggest fleet of these DACs.
Unidentified Participant
Okay, understood. So we don’t see any sort of competitive or competition process because from anyone in the industry, any sort of foreign players or MNC players we look at or it just purely no competition at all per se. And the business geography that we work in.
Naveen Mohta
No, no, it never happened that we will not have any kind of competition. Competition will be there. But since we are one of the largest fleet of vessel, we have what our own strength and which. That’s why there are clients which have been working with us for quite a long period of time. So certain edge are there based on which we are able to get the business and foreign vessel owner again because it is our home turf and there are certain protections provided by the government as well as entry barriers.
So they are not that much keen on coming into India.
Unidentified Participant
Okay, understood. And that’s where we think that it’s one of the competitive advantages that communicate.
Naveen Mohta
Of course, this is one of the this thing. But besides that all the work is obtained on the competitive basis only. Unless we are providing a competitive package there, nobody is going to take that package.
Unidentified Participant
And this is the rate of this package with the rental per day. Whatever things we charge to the plan, it is decided based on market conditions, demand and supply. Is it a we are a price maker or price taker for our clients in terms of charging it?
Naveen Mohta
No, it is neither the price maker or something like it is a discovered price. Our client who has got the job, they bid on the basis of some different kind of thing. And then if the cost package is viable to them, then they definitely take the work with us. And as far as ONGC is concerned that charter rate, they base it or benchmark it against the international charter rates.
Unidentified Participant
So there are two different pricing mechanism for our clients to charge in a way.
Naveen Mohta
Yeah. So when we say that charter has Kind of rate at ONGC or other vessel owners. So it is that benchmarking as an international rate and when we are taking the spot market, that EPC kind of job. So the price of the entire package which they benchmark it against their own internal estimates.
Unidentified Participant
Okay, and this.
Operator
Thank you. The next question is from the line of Tejas and individual investor.
Unidentified Participant
Thank you for the opportunity again, sir. So regarding our UK investments. So we had. I think I recall that last year we had done this to ensure to get more of. Hello.
Rohan Baranwal
Yeah, yeah, we are listening. Yeah,
Unidentified Participant
So we were trying to get more business from Europe and because we heard we believe in Norway and etc had better rates. But we see an impairment charge in this subsidy right now. So have we abandoned that or what is the progress on the UK subsidy? Where are we in that? If you can just share some light on that.
Sunil Gupta
We have not abandoned anything. The only thing is because of the current geopolitical situation on a prudence basis we have just taken that impairment. Otherwise there is no potential impacting
Vinay Kumar Agarwal
Adjustment.
Sunil Gupta
Nothing
Vinay Kumar Agarwal
Is hampering us in terms of project execution.
Unidentified Participant
So what’s the progress in that sir? Are we. Are we close to getting any contracts? Are we pitching anything? Do we see any progress? You can share something inputs insights on that.
Sunil Gupta
Right now we would like to refrain from it. As soon as we get some contract we’ll definitely announce. But the endeavor of the management and the company is that cemax should be a growth oriented company and contribute to the nation’s growth. We have done it in 2026. We are confident for 27, 28 and we’ll do every best effort which is in the interest of the company and its stakeholders.
Unidentified Participant
Okay, answer When. Usually when we have these. The vessels being deployed and you know for some reason when there’s. When there is a job fire for 10 days, 12 days for technical issues. So in that case does that 1012 days amount gets deducted from our value or do you have to separately compensate to own this? How does it work
Sunil Gupta
On a
Unidentified Participant
Broad level
Sunil Gupta
When the vessel is on off hire company is not being paid for those of id.
Unidentified Participant
Okay. Okay. Thank you so much. That was the question.
Operator
Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of Anya, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, could you please share some details about the MSB Samudra Sabha contract and MSB Samudra Prabha contract. Like what kind of revenue potential and margins can we expect?
Sunil Gupta
See, we have already Announced these contracts and the revenue potential of both the contracts and the tenure of the contracts is already declared on the stock exchange change. I think that filing you can download or reach out to our IR agency. They’ll provide you.
Vinay Kumar Agarwal
And both the contracts are up to 31st of March 2028.
Unidentified Participant
The second question for FY20 seconds are scheduled for dry dock during the month season. Can you set a roadmap for dry dock and the extensive.
Naveen Mohta
So three of our own vessels are due for dry docking and two of these vessels which we have taken from ONGC that O and M contact which we have taken. So they will also be going for the dry docking during the year.
Operator
Thank you. Thank you. The next question is from the line of Amish Kanani from novice investment manager. Please go ahead. Sorry to interrupt. Mr. Amistav. Could you please come more closer to your answer?
Unidentified Participant
Yeah,
Operator
Sorry Mr. Your voice is breaking.
Unidentified Participant
Hello.
Sunil Gupta
Yeah, please go ahead.
Unidentified Participant
Yeah. Sir, congrats on a very good set of numbers. Sir. If I remember in Q3 you said, you know, Q3 margins were, you know, relatively high and peak.
Sunil Gupta
You
Unidentified Participant
Were kind of questioning us for not assuming such kind of high margins. But you know, Q4 has been a margin at a much higher level. The question is and there was some one off in Q3 if I remember correctly, either on the expense or revenue line item. And still, you know, our Q4 numbers are very good. So the first question sir is is there any again one off in Q4 which we need to, you know, kind of be aware of. And hence, you know, you are guiding a lower level of margins for next year.
Sunil Gupta
We are not guiding any lower level margins. Please understand when we questioned you in Q3 that has actually happened. Cemap Paladin has not operated for Q4 and even Q1 we are not seeing the operations till date. Okay.
Rohan Baranwal
So
Sunil Gupta
Depending on the dry dock schedule and depending on the mix of the contracts, the margin profile may vary between 2, 3%. But what we are saying, we are still be maintaining a stable margin of 40, 42%. That is the guidance. We are not reducing our margin guidance. Secondly, there is no one off in Q4. However, since you have raised this, Paladin is still stuck there. So for April, May, we are not seeing the revenue from there. Depending on the geopolitical situation will be clear in for June.
Unidentified Participant
Okay, so one quick question and explanation. In the cincy in the third and the fourth quarter numbers are very high in readiness and Q2 is seasonally off. Right. So what my question was two parts. One, there is and Also there is a benefit of sir, rupee depreciation that you know, you would have got.
Sunil Gupta
So
Unidentified Participant
In that context, sir, one, you know, annual margins, you know, will be lower than the Q3 and Q4 margin that we have posted. So that is what I was referring to an annual margin which is lower than the average of Q3 and Q4.
Sunil Gupta
That’s where I’m saying we generally don’t talk about quarterly margins because there can be quarterly aberrations
Unidentified Participant
Annually
Sunil Gupta
Is what I’m saying. Because see, this is a big function. While absolute EBITDA will always grow, but depending on EPC business grows or IMR business grows. So we generally guide that. The margin profile is in the range of 40, 42%. A 1 or 2% higher. Higher depending on the utilization is always welcome.
Unidentified Participant
Okay, and so two quick two clarification. Yes sir. CMAC 1 and 2 were old, you know, vessel and maybe we are assuming some higher dry dock or off higher kind of a situation. And in that context, sir, my, my understanding, if you can clarify whether the O and M, you know, margins, the new, you know, two vessels that we have announced, which is only O and M margins, will that be at a higher margin or blended EBITDA margin for the year is what we should build in
Sunil Gupta
The blended EBITDA margin is more relevant because see, depending on off higher, depending on seasonality, things can really change. So what our intention is that we should grow revenues, we should maintain margin or improve margin on an annualized basis cases, which is still the case. And despite this war going on, we are saying that next year number should be encouraging.
Unidentified Participant
Clarification here. CMAC 1 and 2. Have we assumed.
Sunil Gupta
There it is.
Unidentified Participant
2 and 3. Sorry, sorry. 2 and 3. 2 and 3. So have we assumed any aggressive, you know, off iron offense thing and maybe, maybe with this kind of condition there is a surprise on the upside, just as a cmac,
Sunil Gupta
As one of my colleague would have said, is right now contracted till August 2026.
Unidentified Participant
Sure.
Sunil Gupta
Okay. Post August 26th it will go for a small dry dock and then depending on the market conditions, we’ll see whether we can deploy it on a spot market contract. CMAT 3, we believe that it did exceptionally well in Q this FY26. And we believe and we are confident that the performance should continue for FY27 as well.
Unidentified Participant
Okay, that explains quite a bit of thing. Thanks a lot sir and all the best.
Sunil Gupta
Thank you.
Operator
Thank you. The next question is from the line of Sahil Dasani from mapl. Please go ahead.
Unidentified Participant
Yeah, thanks for the Opportunity again. Hello.
Sunil Gupta
Yeah, please go ahead.
Unidentified Participant
Yeah, just to confirm what you said last time. The rate of diamond vessel is right now at 8 to $10,000 and when it comes for renewal it may increase 10 to 15%. But when I see similar OSVs currently in use in the spot market, they are going at 17 to 20 lakhs per day which is more than double our rate. So why do you think there is this difference and how should we understand this?
Naveen Mohta
We’ll be happy to know which vessels of similar capabilities are getting this kind of rate. If you have any info. Yeah, Ocean,
Unidentified Participant
Diamond and Emerald, these two vessels.
Naveen Mohta
No, no, they are higher capacity vessels and they are not being used as supply vessels. They are mostly, if I recollect they are on the geotech work and those kind of well stimulation work they have been done. So that’s why they are getting more better number of rates. So they are capability wise, size wise they are much bigger than the Diamond.
Unidentified Participant
Okay. Yeah, got it, got it. Okay. And similarly you were just speaking about a supplying to Aramco. We know you supply ongc. So I would like to understand how easy or tough it is to get approved by vendors like ongc, Reliance, Aramco, AGNOC and get them to and and start supplying them with vessels. Because I believe this is very critical work that our vessels usually do.
Naveen Mohta
Yeah, it is a very lengthy process and it is quite difficult process. So that’s why these are the entry barriers which companies enjoy like for working for ongc. Now we are working for so many years now so we have what that advantage of pre qualification. Similarly now we are working with RM Pro. So there also we have already created a track record of working for more than a year now along almost like year. So these are. Once you have delivered this then only you will be able to bid directly to ongc.
Like and we will not be right now will not be able to bid directly to Aramco, but our vessel is working which is creating a track record.
Unidentified Participant
Okay, so this
Naveen Mohta
Is how you get qualified for bidding directly.
Unidentified Participant
But how long would it take according to you to get approved by such high level vendors like OMGC or amco?
Naveen Mohta
It varies from vendor to vendor. Each vendor has got their own set of qualification requirements which will be for a vessel also which will be for the company also. So these are different, different kind for each client.
Unidentified Participant
Got it. Okay. And based on whatever I judge from this call is that based on the shortage that we are seeing in the offshore segment and which you have also been saying and hence for the next two or three years we will see a buoyancy in rates was a particular comment you said. So are we looking to aggressively expand in this segment or do you think the current market situation is not a good plan to end to add more offshore vessels at these premium rates maybe?
Naveen Mohta
No, no. We definitely are seeing growth in the market and shortage is there but we are definitely not chasing the growth aggressively because these are all high capex items and not the small value. And once the growth tapers down then it will become a drag on the balance sheet and we don’t want to do that one. So we are happy to just expand the fleet and keep a keep it deployed. That is much more advantageous to us rather than having a large fleet and then which is sitting idle.
Unidentified Participant
Okay, got it. And for example, one of the previous participants asked you regarding the upcoming OMG tenders for which you said you will announce it with time. But if I were to just go a bit global because of all this war we have seen a lot of oil and gas infra getting impacted in uae, in Dubai and more on the Middle east side. So are we seeing more inquiries flowing in and hence enhancing the shortage of these vessels even more or still no inquiries, no demand, no increased demand from that market yet.
Naveen Mohta
There will be definitely demand which will be coming because right now the situation is it is just not closed rather due to this ongoing issues. There are some cause which has taken place that even though damage has taken place but nobody want to repair those damage or increase their requirement because nobody knows how long this is going to continue. So till the time this issue settle down you won’t be seeing any kind of immediate kind of requirement. But yes, the requirement is going to go up from there now.
Unidentified Participant
Okay, got it. Yeah. That would be all for me sir. Thank you very much for answering all my questions. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Tejas, an individual investor. Please go ahead.
Unidentified Participant
So thank you for taking my questions again regarding the can you just share what was the contribution from our subsidiaries in Top Line and bottom line for FY26?
Sunil Gupta
See, there is no major contribution of our subsidiaries for FY25 26. Basically we have pruned down the operations in Dubai. Okay. We have sold a vessel last year
Unidentified Participant
And
Sunil Gupta
There is another vessel which we might be selling in the coming year. Idea is that we should strengthen and focus on our core business and grow that business from strength to strength.
Unidentified Participant
So sir, are you referring to either pearl or garden to be sold off next year? So those are two bulk areas that we have.
Sunil Gupta
So one we are definitely looking at depending on the market conditions post this war scenario. Let the market open and then we’ll be able to guide it properly.
Unidentified Participant
Okay, but we’ll retain one. So we’ll either Pearl or Gallant will retain and one will sold. Yeah, that’s the plan.
Sunil Gupta
Yes.
Unidentified Participant
So currently there’s no revenue being generated from those. Is it fair to assume so in this, the current period of time? Hello? Hello?
Operator
Sir, the line is wrong. We take this as a last question. I now hand the conference over to the management for the closing comments. Ladies and gentlemen, the management line has been disconnected. Please hold while we quickly reconnect them. Thank you. Ladies and gentlemen, thank you for being on hold. The management line has been reconnected. Thank you. Now to you, sir.
Rohan Baranwal
Yeah, please. Hello?
Operator
So the line has dropped. We take this as a last question. I now hand the conference over to the management for the closing comments.
Naveen Mohta
I thank you all the investors who have joined in for this investor call and hope that all the queries has been reasonably replied to. Thank you for anything else. You can definitely get back to our team for getting further information. Thank you.
Operator
Thank you on behalf of
Naveen Mohta
Aryan
Operator
Capital. That concludes this conference. Thank you for joining us. You may now disconnect your lines.