Dredging Corp swings to Q4 profit on strong revenue growth; targets ₹1,500-cr turnover

Dredging Corporation of India Ltd reported a sharp turnaround in fourth-quarter earnings, aided by strong revenue growth and improved operating performance.

The company posted a net profit of ₹87 crore for the quarter ended March 31, compared with a loss of ₹25 crore in the corresponding period last year, according to an exchange filing.

Revenue from operations surged 73.2% year-on-year to ₹478 crore from ₹276 crore a year earlier.

Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped to ₹143 crore from ₹33 crore in the year-ago quarter, while EBITDA margin expanded to 30% from 12%.

Company targets ₹1,500-crore turnover

The management said the company remains committed to sustaining its growth trajectory and strengthening its position in the domestic dredging sector.

According to the exchange filing, Dredging Corporation of India has set a target of achieving a turnover of ₹1,500 crore during the financial year 2026-27.

Company restates FY25 revenue, expenses

Separately, the company disclosed that it had restated certain revenue and expense items related to the financial year 2024-25 after identifying an accounting error involving advances received for subcontracted work.

The filing stated that DCI had received ₹14.81 crore from the Inland Waterways Authority of India (IWAI) as advance payment for work awarded to the company and subcontracted on a back-to-back basis. The same amount was subsequently paid to the subcontractor as an advance.

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However, both transactions were inadvertently recorded as revenue and subcontracting expenditure instead of advances in the balance sheet, resulting in higher reported revenue and expenses for FY25.

The company clarified that the accounting adjustment had no impact on profit, as the revenue and expense amounts were identical.

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DCI said it has now restated FY25 revenue and expenses by reducing ₹14.81 crore and reclassifying the amount under “advance received from customer” and “payment to subcontractor (advance)” in the balance sheet, in line with applicable accounting standards and Ind AS 8 requirements.

Shares of Dredging Corporation of India Ltd ended higher on Tuesday, May 19, by 14.8% at ₹994.00 on the NSE.