Shipping Corporation of India Ltd (SCI) Q1 FY27 Results Analysis: Revenue Jumps 40%, EBITDA Margin Expands 1080 bps

Shipping Corporation of India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 1,844.64 Cr (+40.20% YoY) and PAT growth of +93.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 40% YoY and EBITDA margin expanded 1080 bps to 48%, with all segments profitable. The strong tanker earnings from elevated VLCC rates and a bulk carrier turnaround drove the beat. However, forex losses, governance non-compliance, and moderating VLCC rates pose risks. The near-term outlook is positive but hinges on rate sustainability.

Key Investment Insights

Key Positives

• Revenue grew 40.2% YoY (standalone) to Rs.1,844.64 Cr, driven by all segments.
• EBITDA grew 80.6% YoY to Rs.884.67 Cr, with margin expanding 1080 bps to 48.0%.
• PAT grew 93.5% YoY to Rs.664.29 Cr, EPS doubled to Rs.14.26.
• All four segments were profitable: Tanker (+41.9% rev, 40.5% margin), Bulk Carrier (+93.8% rev, swung to profit), Liner (+30.0% rev, 31.6% margin), T&OS (+11.7% rev, 19.4% margin).
• Cost of services grew only 11.6% YoY, well below revenue growth, demonstrating operating leverage.

Risk Factors

• Other expenses surged 370% YoY to Rs.46.44 Cr, partly due to undisclosed FOREX losses on foreign-currency borrowings.
• Consolidated PAT was dragged by a Rs.45.04 Cr loss from LNG joint ventures (vs a gain of Rs.11.10 Cr YoY), with going-concern uncertainty noted.
• Board governance non-compliance with SEBI Regulation 17(1) resulted in fines, with no update on resolution.
• VLCC rates moderated from WS~467 in April to WS~345 in July, suggesting potential margin pressure in coming quarters.