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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Bank Loan Ratings | 0.00 | 6374.00 | ACUITE AA+ | Positive | Reaffirmed | - | RBI |
| Bank Loan Ratings | 0.00 | 1126.00 | - | ACUITE A1+ | Reaffirmed | RBI |
| Total Outstanding | 0.00 | 7500.00 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating at "ACUITE AA+" (read as ACUITE double A plus) and short-term rating at “ACUITE A1+” (read as ACUITE A one plus) on the Rs. 7500.00 Cr. bank facilities of The Shipping Corporation of India Limited (SCI). The outlook is revised to “Positive” from “Stable”.
Rationale for rating The rating continues to derive strength from SCI’s strategic importance to the Government of India, established track record of over six decades, leading position in the domestic shipping industry and diversified fleet profile. The Group’s operating income increased by 3.08% to Rs. 5,824.07 Cr. in FY26 from Rs. 5,650.29 Cr. in FY25, while its operating margin improved to 38.19% from 32.03%, supported by healthy tanker freight earnings, improved fleet utilization, and operating efficiencies. The improvement continued in Q1FY27, with revenue growing by 40.31% to Rs. 1,846.56 Cr. from Rs. 1,316.04 Cr. in Q1FY26, led by the tanker segment and the turnaround in the bulk carrier segment. The rating also factors in the Group’s healthy financial risk profile, marked by a sizeable net worth of Rs. 9,095.87 Cr. as on March 31, 2026, low gearing of 0.29 times, and comfortable interest coverage and debt service coverage ratios of 15.25 times and 3.64 times, respectively, in FY26. SCI’s liquidity position remains strong, marked by net cash accruals of Rs. 2,416.75 Cr. in FY26 against maturing debt obligations of Rs. 537.07 Cr. for the same period, providing adequate cushion for debt servicing. The outlook revision reflects expectations of sustained improvement in SCI’s scale, profitability, and cash accruals, along with its long-term growth prospects under the Maritime Amrit Kaal Vision 2047, under which SCI proposes to expand its fleet by 216 vessels up to 2047. While the proposed fleet expansion is expected to strengthen SCI’s operating scale, fleet profile, and market position, the rating remains constrained by volatility in freight rates, geopolitical risks, foreign-exchange exposure, and execution risks associated with the sizeable capex program. The phasing of capex, incremental borrowing, and maintenance of comfortable leverage, coverage, and liquidity indicators will remain key monitorable. |
| About the Company |
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Mumbai based, The Shipping Corporation of India Limited (SCI) was incorporated in 1961. The Government of India (GoI) holds 63.75% of the equity as on June 30, 2026. SCI is the largest Indian shipping company in terms of capacity with a diversified fleet profile. The company is involved in business of transporting goods and passengers. SCI’s owned fleet includes Bulk carriers, Crude oil tankers, and Product tankers, Container vessels, Passenger-cum-Cargo vessels, LPG carrier and Offshore Supply Vessels. The average age of vessels is 15 to 16 years. The company also mans and manages a large number of vessels on behalf of various government departments and organizations, on which it earns service income. SCI also has a few joint ventures with leading international shipping companies. The Government has conferred “Navratna”status to SCI in August 2008. The present directors of the company are Capt. Binesh Kumar Tyagi, Rear Admiral Jaswinder Singh, Capt. Som Raj, Shri Nitin Khamesra, Capt. Chandran Daniel, Shri Mukesh Mangal and Smt. Bharati Raman Gotarna.
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| About the Group |
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Inland and Coastal Shipping Limited (Subsidiary)
India has a long coastline admeasuring 7500 km and a large network of river systems. Despite this, very little attempt has been made to interlink these natural assets for a seamless, environment friendly transport system. In a bid to remedy this lacuna, during the Maritime India Summit 2016, the Inland Waterways Authority of India(IWAI) entered into a Memorandum of Understanding with The Shipping Corporation of India(SCI) on 15th of April 2016 to develop this field of domestic transport. Both parties agreed to work towards tapping the synergies of high sea shipping, coastal shipping and inland waterways to establish an integrated system of water transportation across the hinterland, the coasts and the high seas. For this purpose, the SCI Board approved the formation of a dedicated subsidiary company of SCI, based in Kolkata in the year 2016. The Company has been named as “Inland And Coastal Shipping Limited”(ICSL). The subsidiary company is working on development of a viable business plan on this segment. The present directors of the company are Capt. Binesh Kumar Tyagi, Rear Admiral Jaswinder Singh, Capt. Som Raj and Shri A.K. Bansal. SCI Bharat IFSC Limited (Subsidiary) SCI Bharat IFSC Limited is a wholly-owned subsidiary of the Shipping Corporation of India (SCI), established at GIFT City in Gujarat, India to function as a finance company for maritime-related financial services, offering services like leasing, trading, and other financial activities within the International Financial Services Centre (IFSC) framework. Incorporated in August 2024, it supports SCI's diversification and aims to enhance India's maritime trade by providing specialized financial solutions. The present directors of the company are Capt. Binesh Kumar Tyagi, Shri Nitin Khamesra, Capt. Chandran Daniel and Shri Mukesh Mangal. India LNG Transport Company No.1 & 2 Ltd. (Joint Venture) SCI along with its consortium partners, viz. premier Japanese shipping lines & a Qatari Shipping Company formed two Joint Venture Companies (JVC) at Malta; i.e. India LNG Transport Co. No.1 Ltd. & India LNG Transport Co. No.2 Ltd. for the construction, ownership and operation of two LNG tankers, viz. S.S. Disha and S.S. Raahi. Both the ships are chartered on a long-term 25 year Time Charter with PLL. These vessels were delivered on 09.01.2004 and 16.12.2004 respectively. SCI's equity stake in each of the JVC’s is 29.08%. India LNG Transport Company No. 3 Ltd. (Joint Venture) SCI with its consortium of Japanese Partners & a Qatari Shipping Company has formed a JVC at Malta for constructing, owning and operating one LNG tanker of 154,800 cbm for the PLL Dahej Expansion Project. MT Aseem owned by India LNG Transport Company No. 3 Ltd. was delivered on 16.11.09. SCI has taken up the role of the manning agent for the tanker and operating it with full SCI manning with its officers and crew on board right from the delivery. The Time Charter Agreement will be for a period of 25 years, i.e. until 2034. This tanker will supply an additional 2.5 million metric tons of LNG per year to the Dahej Terminal of M/s Petronet LNG Limited. SCI's stake in the joint venture is 26%. India LNG Transport Company No. 4 Pte. Ltd (Joint Venture) SCI with its consortium of Japanese Partners formed a JVC in Singapore for constructing, owning and operating one LNG tanker of 173,000 cbm for transporting 1.44 million metric tons of LNG from Gorgon, Australia to India for charterers Petronet LNG Ltd (PLL). MT Prachi owned by India LNG Transport Company No. 4 Ltd. was delivered on 30.11.2016. PLL took shareholding in ILT 4 post the delivery of the vessel. SCI owns 26% shareholding in the joint venture. SCI is also the manager for ILT4 and handles the techno-commercial operations since the delivery of the vessel. On 01.01.2018, PLL novated the charter party in favour of Exxon Mobil LNG Services B.V., Netherlands who are the current charterers of MT Prachi. Post novation, the tanker is transporting LNG from Gorgon, Australia primarily to disports in China, Japan and India. The Time Charter Agreement will be for a period of 19 years i.e., until 2035. |
| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered the consolidated business and financial risk profile of The Shipping Corporation of India Limited along with its two subsidiary and four joint ventures to arrive at the rating (please refer to Annexure 2).
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| Key Rating Drivers |
| Strengths |
| Long track record of operations along with diversified business segment
SCI is one of the largest shipping companies in India with an operational track record of around six decades. It benefits from the experienced management of qualified professionals and nominees of GOI. The long track record has helped those establishing relationships with major PSUs in India. The group have diversified business segments which includes crude oil/product tankers, dry bulk, offshore services, and container operations, and has a presence in passenger vessels, chemicals, and gas transportation. SCI currently has the largest fleet size of 58 vessels; a relatively younger fleet, with an average age of around 15 to 16 years which helps them in getting better charter rates and achieving higher operating efficiency. Vessels on behalf of third parties, primarily Public-Sector Units (PSUs)/ Government Departments/Union Territories are also managed for service income. Improvement in scale of operations SCI's revenue from operations increased by 3.08% to Rs. 5,824.07 Cr. in FY26 from Rs. 5,650.29 Cr. in FY25, primarily driven by improved fleet utilization, higher freight earnings from the tanker and bulk carrier segments, increased cargo volumes, and continued contribution from offshore and ship management services. The improvement in revenue was accompanied by a significant enhancement in profitability, with the operating margin improving to 38.19% in FY26 from 32.03% in FY25, supported by favourable tanker market conditions, higher freight realizations, improved fleet deployment, and operating efficiencies. Consequently, the net profit margin improved to 23.23% in FY26 from 14.93% in FY25. The Group continued to demonstrate strong operating performance in Q1FY27, with revenue increasing by 40.31% to Rs. 1,846.56 Cr. from Rs. 1,316.04 Cr. in Q1FY26, primarily driven by robust performance of the tanker segment and a turnaround in the bulk carrier segment. Further, the operating margin improved to 47.79% in Q1FY27 from 37.15% in Q1FY26, reflecting sustained strength in freight realizations and improved earnings across key business segments. Acuité believes that SCI is likely to sustain its healthy operating performance over the medium term, supported by its strong market position, diversified fleet profile, favourable industry dynamics, and planned fleet expansion initiatives under the Maritime Amrit Kaal Vision 2047.? Healthy Financial Risk Profile The financial risk profile of the Group remained healthy, supported by a strong net worth leverage and comfortable debt protection metrics. The tangible net worth improved to Rs. 9,095.87 Cr. as on March 31, 2026, from Rs. 8,311.21 Cr. as on March 31, 2025, primarily on account of accretion of profits to reserves. The gearing remained comfortable at 0.29 times as on March 31, 2026, against 0.27 times as on March 31, 2025. The debt protection metrics remained strong, marked by an interest coverage ratio of 15.25 times and a debt service coverage ratio (DSCR) of 3.64 times in FY2026, reflecting the Group's healthy profitability and debt-servicing ability. Acuité believes that SCI’s financial risk profile is expected to remain healthy over the medium term, supported by its strong net worth, healthy cash accruals, leverage, and comfortable debt coverage indicators. However, the impact of the proposed fleet expansion program on the Group’s capital structure and leverage levels will remain a key monitorable.?????? |
| Weaknesses |
| Moderate Working Capital Management
The working capital operations of the Group remained moderate, albeit stable, as reflected in the Gross Current Assets (GCA) days of 134 days in FY26, which remained at the same level as in FY25. The stability in the working capital cycle was primarily supported by the relatively stable debtor collection period, with debtor days improving marginally to 76 days in FY26 from 78 days in FY25. The receivables profile continues to derive comfort from the fact that a significant portion of trade receivables is attributable to Government departments and public sector undertakings, thereby mitigating counterparty credit risk. However, inventory holding increased, with inventory days rising to 28 days in FY2026 from 18 days in FY2025. Acuité believes that the Group's working capital requirements are likely to remain moderate over the medium term, given the nature of its operations and exposure to government and PSU counterparties. Nevertheless, the established relationships with such customers and timely realization of receivables are expected to support the overall working capital profile. Operations remain vulnerable towards fluctuations in forex risks SCI income and the majority of its operating expenditure are predominantly USD denominated. Freight rates, as well as the sale values of ships, are determined in USD. The group has its liabilities also denominated in USD. Any significant movement in the currency or interest rates could impact the group’s financials. |
Rating Sensitivities
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| Liquidity Position |
| Strong |
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SCI's liquidity position remains strong, supported by healthy cash accruals, comfortable liquidity buffers and moderate debt repayment obligations. The Group generated net cash accruals of Rs. 2,416.75 Cr. in FY26 against maturing debt obligations of Rs. 537.07 Cr. during the same period, resulting in adequate coverage of repayment requirements. Further, the Group's cash accruals are estimated to remain in the range of Rs. 2,000 Cr. to Rs. 2,500 Cr. over the near to medium term, against scheduled debt repayments of around Rs. 677.21 Cr. The liquidity profile is further supported by cash and bank balances of Rs. 24.91 Cr. and unencumbered deposits and mutual fund investments aggregating approximately Rs. 2,632 Cr. as on March 31, 2026. In addition, the current ratio remained comfortable at 2.22 times as on March 31, 2026, indicating adequate coverage of short-term liabilities. Acuité believes that SCI's liquidity position is likely to remain strong over the medium term, supported by healthy cash accruals, substantial liquid investments, and adequate financial flexibility. However, the funding requirements arising from the proposed fleet expansion program and the resultant impact on liquidity and leverage levels will remain key monitorable.
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| Outlook: Positive |
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| Other Factors affecting Rating |
| None |
| Particulars | Unit | FY 26 (Actual) | FY 25 (Actual) |
| Operating Income | Rs. Cr. | 5824.07 | 5650.29 |
| PAT | Rs. Cr. | 1352.92 | 843.58 |
| PAT Margin | (%) | 23.23 | 14.93 |
| Total Debt/Tangible Net Worth | Times | 0.29 | 0.27 |
| PBDIT/Interest | Times | 15.25 | 10.62 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Any Other Information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Service Sector: https://www.acuite.in/view-rating-criteria-50.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
