Dredging Corporation of India Limited (DCIL) has had its credit ratings for bank facilities reaffirmed by CareEdge Ratings, with a stable outlook. The long-term bank facilities of ₹188.64 crore were reaffirmed at CARE BBB+ with a Stable outlook, reduced from ₹201.00 crore. Long-term/short-term bank facilities totaling ₹225.00 crore were reaffirmed at CARE BBB+ Stable/CARE A3+, an enhancement from ₹175.00 crore. Short-term bank facilities of ₹40.00 crore were also reaffirmed at CARE A3+, an enhancement from ₹25.00 crore.

The reaffirmation is driven by DCIL's nearly five decades of experience in domestic and overseas dredging services, strong parentage from major port shareholding, and a growing order book providing medium-term revenue visibility. Promoters have provided significant support through unsecured loans, amounting to ₹315 crore as of March 31, 2025, with an additional ₹165 crore received in FY25. This support is expected to continue to aid liquidity and fund capital expenditures.

DCIL has demonstrated steady revenue growth, with a 21% year-on-year increase in FY25 to ₹1,142 crore and a 28% increase in H1FY26 to ₹454 crore. The company maintains a comfortable leverage profile, with an overall gearing ratio below unity as of March 31, 2025. However, profitability was moderated in FY25 and H1FY26 due to liquidated damages of ₹118 crore and foreign exchange losses on unhedged foreign currency debt. The company has claimed reversal of liquidated damages and recovered ₹17 crore in H1FY26, which supported PBILDT.

A new Trailing Suction Hopper Dredger with a capacity of 12,000 cubic meters is under construction at a cost of €89.39 million, expected to be commissioned by October 2026. This will enhance operational efficiency and support revenue growth from FY27 onwards. The company faces challenges including an aging fleet, vulnerability to foreign exchange risk, and competition from private players.