Microcap stock jumps 3% after securing order worth ₹26 Cr from Larsen & Toubro

Synopsis: 
ABS Marine Services jumped sharply after securing an order worth Rs 26 Cr from Larsen & Toubro for the Charter Hire of an Offshore Supply Vessel.

The shares of this leading shipping services provider are in focus after securing a critical from the infrastructure giant, Larsen & Toubro. In this article, we will dive more into the details of this order.

With a market capitalisation of Rs 567 crore, the shares of ABS Marine Services Ltd are currently trading at Rs 232.35 per share, up 3 percent from its day’s low price of Rs 225 per share. In the last one year, the stock has delivered a return of 16 percent, outperforming NIFTY 50’s return of 10 percent.

About the Order

ABS​‍​‌‍​‍‌​‍​‌‍​‍‌ Marine, through a stock exchange filing, announced that it has secured an order from Larsen & Toubro (L&T) to lease one of its offshore supply vessels. The said vessel will be used in support of L&T operations from Mumbai Port starting 17 November 2025 and will remain on hire for 150 days, with a 28-day extension option if L&T requires it.

The approximate contract value is Rs 26.07 crore, inclusive of taxes and any extensions. The vessel to be used is a DP-2 Platform Supply Vessel, a unit specially built to transport the facilities, cargo, and the necessary provisions to offshore oil and gas platforms, thus making it a vital tool for L&T’s marine and energy ​‍​‌‍​‍‌​‍​‌‍​‍‌projects.

Q2 Highlights

ABS Marine Services reported a core revenue of Rs 136 crore in H1 FY26, a growth of 70 percent as compared to Rs 80 crore in H1 FY25. Additionally, it grew by 36 percent from Rs 100 crore in H2 FY25.

Regarding its profitability, it reported a net profit of Rs 31 crore in H1 FY26, a staggering growth of 288 percent as compared to Rs 8 crore in H1 FY25. Additionally, it recorded a growth of 63 percent from Rs 19 crore in H2 FY25.

The stock delivered an ROE and ROCE of 15.56 percent and 14.20 percent respectively, and is currently trading at a low P/E of 11.28x as compared to its industry P/E of 14.18x.

ABS​‍​‌‍​‍‌​‍​‌‍​‍‌ Marine Services Limited, a company that started back in 1992 and has been developing gradually, now offers all kinds of marine solutions. The enterprise manages ships, holds ships as its assets, offers marine and port services, and thus covers the whole maritime industry. Besides the head office in Chennai, the company operates from Mumbai, Kochi, Kakinada, and Singapore; therefore, it has a wide global reach.

The company is led by a competent team of around 50 well-trained professionals who are in charge of ship operations, crew management, shipping law, and finance. Being at the right places along the coast, ABS Marine has the advantage of deep local insight and broad international reach, which is very useful in dealing with global partners and different sets of ​‍​‌‍​‍‌​‍​‌‍​‍‌rules.

Written by Satyajeet

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