Rudra Green Ship Recycling IPO

Strengths · 7

• 01Revenue from operations grew from Rs 179.51 crore in FY2024 to Rs 204.52 crore in FY2026.
• 02EBITDA rose from Rs 8.43 crore in FY2024 to Rs 21.79 crore in FY2026, and EBITDA margin moved from 4.69% to 10.65%.
• 03Profit after tax was Rs 12.65 crore in FY2026 against Rs 5.37 crore in FY2024, and PAT margin was 6.17%.
• 04Return on equity was 27.40% in FY2026 and return on capital employed was 19.03%.
• 05The company has recycled 25 vessels aggregating 188,054.82 MT of LDT since incorporation, across oil tankers, bulk carriers, container vessels and offshore assets.
• 06It earns from two lines. Recovered materials gave 53.37% of FY2026 revenue and traded steel products gave 46.63%.
• 07Promoters and promoter group hold 100.00% before the issue, and the promoters' weighted average cost per share is Rs 5.00 for most of them.

Risks · 10

• 01Rudra Global Infra Products Limited, a Group Company and related party, bought 52.46% of revenue from operations in FY2026, and the top 5 customers gave 60.82%.
• 02Operating cash flow was negative in all three years: Rs -4.65 crore in FY2026, Rs -9.23 crore in FY2025 and Rs -22.06 crore in FY2024, even as profit rose.
• 03The permission to use the Alang-Sosiya ship recycling plot expired on 18 January 2026 and has been extended only up to 18 October 2026.
• 04Total borrowings were Rs 62.21 crore against net worth of Rs 52.47 crore at 31 March 2026, a debt to equity of 1.19 times.
• 05The quick ratio was 0.57 times in FY2026, and the company needs heavy working capital to buy vessels and hold inventory.
• 06All vessels are bought from overseas sellers and paid for in U.S. Dollars, and the company does not hedge this exposure.
• 07Gujarat contributed 97.87% of FY2026 revenue and all operations are in one state.
• 08The company flags sanctions risk on vessels linked to Iran and says the Iran and United States conflict has raised vessel, freight and marine insurance costs.
• 09Rs 90.00 crore of the net proceeds goes to working capital. The amount for unidentified acquisitions and general corporate purposes is not yet fixed.
• 10The company reports high employee attrition in the last three fiscals, particularly among workmen at the Alang yard.

Rudra Green Ship Recycling Limited recycles end-of-life ships and sells the steel and other materials recovered from them. It also trades ferrous materials and steel products such as billets, M.S. sponge, TMT and round bars. The business started with Harikrishna Steel Corporation, a partnership firm formed in 1994, and the company took it over after its incorporation in 2018.

Ship recycling is done at Plot No. 132/133M in the Alang-Sosiya Ship Recycling Yard, Bhavnagar, which the Gujarat Maritime Board allotted to the company. A backyard premises at Sosiya supports the yard. Since incorporation the company has recycled 25 vessels aggregating 188,054.82 MT of Light Displacement Tonnage. In the last three fiscals it recycled 12 vessels aggregating 57,268.49 MT. Two more vessels, M.T. Seabas and M.V. Frio Antarctic, aggregating 14,764.80 MT, are under recycling now.

The company has two segments. Sale of manufactured goods, which means materials recovered from ships, gave Rs 109.15 crore or 53.37% of FY2026 revenue from operations. Sale of traded goods gave Rs 95.36 crore or 46.63%. All sales are in India, and Gujarat contributed 97.87% of revenue in FY2026.

A large part of sales goes to Rudra Global Infra Products Limited, a listed Group Company and a related party. It took 52.46% of revenue from operations in FY2026. The company buys all its end-of-life vessels from overseas sellers and pays in U.S. Dollars, while it sells in Indian Rupees.

None of the key premises is owned by the company. The yard is allotted by the Gujarat Maritime Board, and the registered office, backyard premises and storage premises are leased from two of the promoters. The company holds ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications, among others.

The industry

ICRA Analytics says India led world ship recycling by volume in 2025. The global ship recycling market was 8.36 million Gross Tonnage in CY2025 and is projected to reach 11.86 million GT by CY2030, a CAGR of 7.20%. India's market was 2,998 thousand GT in CY2025, with a CAGR of -1.6% over CY2019 to CY2025, and is projected to grow at 8.4% a year to about 4,572 thousand GT by CY2030. The Alang-Sosiya yard accounts for approximately 97% of India's ship recycling activity. The report says the industry remains exposed to shipping market cycles, freight rates, scrap steel prices and foreign exchange movements.

Customer concentration: Rudra Global Infra Products Limited gave 52.46% of FY2026 revenue from operations (51.25% in FY2025). The top 5 customers gave 60.82% in FY2026 and 60.75% in FY2025.