Stock: ABS Marine Services in Spotlight after Q4 FY25 Results

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Stock Market: ABS Marine Services Stock Climbs after Q4 FY25 Results

By S JHA

Mumbai, June 5, 2025 — ABS Marine Services Ltd. is in the spotlight after the company announced its Q4 FY25 results. The Chennai-based shipping company showcased a stellar performance with significant growth in revenue and profitability, driven by strong order execution and operational efficiency.

The company reported a consolidated H2 FY25 revenue of ₹102 crore, up from ₹82 crore quarter-on-quarter, reflecting a robust recovery from a subdued H1. EBITDA surged to ₹35.6 crore compared to ₹19 crore in the previous quarter, with EBITDA margins expanding to 34.79% from 23.22%.

ABS Marine Services Ltd. reported profit after tax (PAT) for H2 FY25 of ₹19.2 crore, a significant increase from ₹8.1 crore year-on-year. For the full year, FY25 revenue reached ₹180 crore, a 33% rise, with PAT at ₹19 crore compared to ₹8 crore in FY24.

Key highlights include a strong order book of ₹500-600 crore, bolstered by a ₹20.6 crore offshore vessel charter contract with Alphard Logistics and the acquisition of the 2008-built DP2 Offshore Supply Vessel ‘EMERALD’ in Q1 FY26.

The company’s operating profit margin (OPM) for FY25 stood at 33%, with management guiding for an ambitious 40-45% OPM in FY26, driven by revised contract rates and increased contributions from owned and leased vessels (expected to account for 55-60% of FY26 revenue, up from 40% in FY25).

Analyst Commentary and Stock Outlook

Analysts have reacted positively to ABS Marine’s performance, citing its strong comeback and promising growth trajectory. “The company’s H2 FY25 results demonstrate operational resilience and strategic execution,” said an analyst from a leading brokerage. He added that “with a robust order book and improved margins, ABS Marine is well-positioned for significant growth in FY26.”

ABS Marine’s FY26 guidance of 40-45% EBITDA margins and H1 revenue of ₹135-140 crore have also invited attention of investors for massive growth potential at a modest market cap of ₹340 crore.

Brokerages have highlighted the company’s strong return ratios and high-margin business model, underpinned by a diversified fleet and long-term contracts.

Analysts expect FY26 to be a breakout year, with EBITDA potentially doubling due to enhanced vessel utilization and favourable contract terms. However, some caution that the stock’s 25% decline over the past three months may reflect market volatility, though the long-term outlook remains optimistic given the company’s fundamentals and order visibility.

Stock Performance

The ABS Marine Services’ share price stood at ₹147 on Thursday. The stock was trading at ₹116 a month ago. Despite recent price softness, analysts remain bullish, citing the company’s low tax rate, 63.4% promoter holding, and consistent profitability as key strengths.

ABS Marine’s management expressed confidence in sustaining momentum into FY26, with a projected H1 revenue of ₹135-140 crore and a strong order pipeline ensuring visibility. The company’s focus on expanding its fleet and securing high-value contracts positions it as a key player in the marine services sector.

Investors are advised to monitor execution timelines and margin trends, as these will be critical to achieving the guided growth.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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