The Great Eastern Shipping Company (500620) Q1 25/26 earnings summary

Executive summary

• Consolidated net profit for Q1 FY26 was INR 505 Cr, with a consolidated NAV of INR 1,431/share as of June 30, 2025; net profit is down significantly year-over-year but up sequentially.

• 14th consecutive interim dividend declared at INR 7.20 per share, with a payout ratio of 27% on standalone earnings.

• Unaudited financial results for the quarter ended June 30, 2025, were approved, and a term loan of up to Rs. 425 crores was granted to a wholly owned subsidiary for prepayment of external borrowings.

• Revenue and EBITDA declined year-over-year, reflecting softer market conditions.

Financial highlights

• Consolidated revenue for Q1 FY26 was INR 1,337 Cr, down from INR 1,703 Cr in Q1 FY25; standalone net asset value at INR 1,120 per share, down from INR 1,181 a year ago, but up from March.

• Consolidated EBITDA for Q1 FY26 was INR 778 Cr, compared to INR 1,106 Cr in Q1 FY25.

• Net profit (normalized) for Q1 FY26 was INR 506 Cr, versus INR 817 Cr in Q1 FY25.

• Net cash position of $600 million standalone and $700 million consolidated; net debt-equity ratio was negative at (0.44), reflecting strong liquidity.

• Basic EPS for the quarter was Rs. 35.34, down from Rs. 56.87 in Q1 FY25.

Outlook and guidance

• OPEC+ unwinding of supply cuts is expected to benefit crude tankers.

• Current rates for bulk carriers are better than last quarter; tanker rates are stable or marginally higher.

• Management does not provide earnings forecasts due to market volatility and high spot market exposure.

• Dividend payout ratio increased to 27%, but future payouts will depend on capital deployment needs.

• The acquisition of a new vessel is expected to enhance fleet capabilities in the coming quarters.