Archive · 11 Oct 2026
India’s Offshore Push Puts Two Shipping Stocks in Focus
India plans to spend ₹84,084 crore to support offshore oil and gas exploration.
Ships are needed to carry supplies and help workers at offshore sites.
ABS Marine Services owns specialised vessels and has won some contracts, but it has also borrowed more money to grow.
Shipping Corporation of India has offshore ships too, but most of its business comes from other kinds of shipping.
It has ordered a new methanol-fuelled support vessel, which will take time to be built and earn money.
More government spending could create work for these ships, but it does not guarantee that either company will win contracts.
Investors would need to watch whether ships are working, bringing in cash and covering their costs.
India’s ₹84,084-crore Samudra Manthan scheme funds offshore seismic work, deepwater wells and infrastructure through FY2030–31.
ABS Marine Services has expanded its offshore fleet and secured contracts, but rising borrowings and vessel costs make cash generation crucial.
ABS reported FY26 revenue of ₹319 crore and net profit of ₹81 crore; revenue from owned and existing vessels reached ₹251.09 crore.
Shipping Corporation of India operates a diversified fleet; its Technical & Offshore segment generated ₹80.80 crore, about 4.4% of Q1FY27 revenue.
Both companies could benefit if exploration creates vessel demand, but actual gains depend on contracts, utilisation, charter rates and disciplined investment.
- Who
- ABS Marine Services and Shipping Corporation of India are the shipping companies discussed.
- What
- The article examines whether India’s offshore exploration plans could increase demand for platform supply and other support vessels.
- When
- The government scheme was approved in August 2026, with implementation planned through FY2030–31.
- Where
- India’s offshore oil and gas sector.
- Why
- Exploration, deepwater drilling and offshore infrastructure activity could create demand for vessels, though benefits depend on contracts and vessel utilisation.
Potential Upside
Risks and Limits
Demand from offshore spending
Potential Upside
More drilling and offshore infrastructure could create work for supply vessels and support higher utilisation and charter revenue.
Risks and Limits
Government spending does not guarantee vessel contracts; benefits depend on project execution, awards and deployment.
Fleet expansion
Potential Upside
ABS’s new vessels and SCI’s planned methanol-fuelled PSV could position them to serve offshore demand.
Risks and Limits
New vessels require capital, and delivery delays, idle time, maintenance, depreciation and borrowing costs can erode returns.
Company exposure
Potential Upside
ABS offers more direct exposure to offshore vessels, while SCI can draw on a broader shipping business to fund investment.
Risks and Limits
ABS faces a sharper debt-servicing test; SCI’s offshore segment is a small share of current revenue, so its overall results do not establish a PSV-led recovery.
- Offshore exploration scheme
- The Union Cabinet approved the ₹84,084-crore Samudra Manthan National Offshore Exploration Scheme in August 2026.
- Scheme components
- The article lists ₹28,534 crore for seismic data, ₹43,200 crore for 60 deepwater wells, ₹10,000 crore for infrastructure hubs and ₹2,000 crore for manufacturing and services zones.
- ABS FY26 owned-vessel revenue
- Revenue from owned and existing vessels was ₹251.09 crore, compared with ₹96.42 crore in FY25.
- ABS borrowings
- Consolidated non-current borrowings were ₹331.11 crore and current borrowings were ₹46.12 crore in March 2026.
- SCI Q1FY27 results
- Consolidated revenue was ₹1,846.56 crore and profit after tax was ₹619.34 crore.
- SCI offshore segment
- Technical & Offshore revenue was ₹80.80 crore in Q1FY27, approximately 4.4% of consolidated revenue.
- SCI new vessel
- SCI contracted Mazagon Dock Shipbuilders in March 2026 to build its first 3,000-DWT methanol dual-fuel diesel-electric PSV; the disclosed contract value was about US$39 million.