Knowledge Marine vs Dredging Corporation: Who Leads India’s dredging sector?

Who Leads India’s dredging sector

Synopsis: KMEW has rapidly evolved into a high-margin, efficient dredging player with 26 dredging units and 40 marine assets, and DCI remains India’s largest and most strategically important dredging company with the country’s most powerful fleet. Let us know more about this company and understand which company thrives where. 

India’s dredging sector is going through an interesting shift, with two names standing out: the long-established Dredging Corporation of India (DCI) and the fast-growing Knowledge Marine & Engineering Works Ltd (KMEW). Dredging plays a crucial role in keeping ports, shipping routes, and coastal infrastructure clear by removing sediment and deepening waterways, making it essential for the country’s maritime growth. For years, DCI has been the industry’s backbone, but KMEW’s sharp rise, efficient execution, and steady flow of project wins have sparked a fresh conversation about who truly leads the sector today.

Let us analyse and see which company takes the win. 

Knowledge Marine & Engineering Works Ltd

Knowledge Marine & Engineering Works Limited (KMEW) has quickly grown from a small ship-repair unit into a major dredging and marine services player operating across India, Myanmar, and Bahrain. The company works across dredging, vessel ownership, operations, and port-related craft chartering, backed by promoters who bring more than 75 years of combined experience in the industry.

What sets KMEW apart is its young and highly qualified founding team, with an average age of just 36 and expertise spanning naval architecture, marine and mechanical engineering, finance, law, and management. This mix of deep technical knowledge and energetic leadership has helped the company scale rapidly and establish itself as one of the most dynamic names in the dredging sector.

With a market cap of Rs 4,000 crore, the shares of Knowledge Marine & Engineering Works Ltd have closed at Rs 3,274. The shares have given a return of 55% since their listing in November 2024 and are trading at a PE of 81.4, whereas their industry PE is 78.8. 

Dredging Corporation of India

Dredging Corporation of India Limited (DCI), established in 1976, is one of India’s oldest and most trusted names in dredging. Created to support the country’s major ports, it has grown into a pioneer in maritime development, offering a full range of dredging and related services both in India and overseas.

Based in Visakhapatnam, DCI plays a crucial role in keeping India’s ports, naval bases, and coastal facilities navigable by maintaining the required depths and supporting the creation or deepening of harbors. Its work stretches across the country’s vast 7,500 km coastline, making it an essential part of India’s maritime and trade ecosystem.

With a market cap of Rs 2,884 crore, the shares of Dredging Corporation of India Ltd Have closed at Rs 1,030. The shares have given a return of 250% and 40% in the last 5 years and last 6 months, respectively.

Scale & Market Position

DCI is firmly positioned as the number one player in India’s dredging industry, supported by four major government ports and involved in dredging activities across almost every major port in the country. With over four decades of experience, it plays a central role in the nation’s large-scale maritime projects, from port deepening to maintenance dredging and reclamation. The company clearly states its goal of continuing as the top player in the industry, reflecting its long-standing scale and dominance.

KMEW may not match DCI’s size, but it has made a strong name for itself as one of the fastest-growing and most specialised companies in shallow-water dredging, inland waterway projects and niche marine services. Over the years, it has built a reliable track record in both national and international operations, taking on river, coastal and harbour projects. Its expansion into shipbuilding, green tugs and chartering reflects the company’s ambition and growing influence in select high-margin segments.

Fleet Strength & Capabilities

DCI operates India’s largest and most capable dredging fleet, which includes multiple Trailing Suction Hopper Dredgers (TSHDs), cutter suction dredgers, backhoe dredgers, survey vessels and multicats. This fleet gives DCI the ability to take on deep-water, heavy-duty capital dredging, large port development work and major reclamation projects along India’s vast coastline. Its powerful TSHDs, such as Dredge XIX, XX and XXI provide capacity unmatched by any other Indian company.

KMEW’s fleet is smaller in scale, but it is highly versatile and well-suited for shallow-draft and inland operations. It operates 26 dredging units—including CSDs, a TSHD, grab and backhoe dredgers—along with a total of 40 marine assets. The company focuses on areas that demand precision and mobility, such as river dredging and coastal work, while its shipyard arm, KSPL, adds strength through the construction of tugs, dredgers and other support vessels.

Order Book & Project Profile

DCI continues to handle large national projects, many of which come through nomination from government-owned ports, ensuring steady work in maintenance and capital dredging. The company is present in almost all major ports and also works on projects for the Navy, as well as international assignments in Sri Lanka, Taiwan and the UAE. Its strong backing and national role ensure a consistent flow of sizable, mission-critical projects.

KMEW has built a solid and rapidly expanding order book with H1 FY26 order achievement of 7 significant order wins aggregating to Rs 968.69 crores. The orders are for marine services like river maintenance contracts from IWAI, port dredging for Deendayal Port, capital dredging, Bahrain sand mining and a growing list of shipbuilding orders. One of its notable wins includes two Green Tug contracts worth more than Rs 650 crore, offering 15 years of guaranteed revenue. With a more than 50% order-win ratio and diversified contracts across dredging, chartering and shipbuilding, KMEW has built a strong base for long-term growth.

Financial & Operational Performance

Although DCI leads the industry in scale, its financial performance has been uneven, influenced by high operating costs, ageing vessels and lower fleet utilisation. In Q2 FY26, the company reported a loss of Rs 34 crore, with Revenue at Rs 212 crore, which were both at similar ranges in Q2 FY25. Despite its strong presence and national importance, profitability remains key areas of concern.

KMEW had revenue from operations at Rs 50 crore,with profit at Rs 12 crore in Q2 FY26, which helps it follow a disciplined approach, focusing on efficient operations, selective bidding and projects that ensure minimum 35% EBITDA margins. This approach, along with income from tugs, dredgers, shipbuilding and tourism vessels, has allowed the company to maintain strong profitability. Its younger fleet, project mix and operational discipline enable KMEW to generate healthier returns compared to traditional players.

Conclusion

Overall, the comparison between the two companies shows an industry being pulled in two directions—one driven by legacy scale and national responsibility, and the other by efficiency, focus and sharper execution. DCI represents the traditional foundation of India’s dredging ecosystem, shaped by decades of involvement in major maritime projects and the strategic expectations that come with such a role.

KMEW reflects the opposite side of that spectrum: younger, leaner and more responsive to evolving opportunities in specialised areas of the market. As India’s coastal and inland waterway requirements expand, both companies are likely to remain important, but in different ways. 

DCI will continue to anchor large, long-term infrastructure commitments, while KMEW is positioned to grow by targeting high-value, operationally demanding segments where speed and precision matter more than sheer size. In that sense, neither company replaces the other; instead, they highlight two distinct paths within the same sector—one shaped by scale, the other by adaptability. The future leadership of the industry may ultimately depend on which strengths become more critical as India’s maritime priorities evolve.

From an investment point of view, the comparison gives a clear framework for deciding which company aligns better with an investor’s long-term expectations. Each operates with a different strength,one built on scale and national importance, the other on efficiency and profitable growth, so the choice ultimately depends on what an investor values more. By weighing their business models, financial trends and future positioning, an investor can gauge which company is more likely to deliver sustainable growth and translate that into stronger returns in the years ahead.

Written by Leon Mendonca

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