From Ammonia-Fuelled Ships to Harbour Tugs: SDHI Expands Shipbuilding Portfolio.
SDHI shipyard in Gujarat, India.
SDHI Financial Results: Swan Defence and Heavy Industries Limited (SDHI) has reported a significant increase in operating revenue for the first half of the 2026-27 financial year, alongside a substantial order book that provides visibility for the company’s shipbuilding and heavy engineering operations through FY31. The company announced its unaudited financial results for the six months ended 30 September 2026 on 13 October.
SDHI said its operating revenue increased 2.5 times during the first half of FY27, while its firm order book stood at approximately ₹6,500 crore at the end of September. The company’s latest performance reflects its efforts to move beyond a turnaround phase towards executing new orders, expanding its capabilities and rebuilding its position in the domestic and international shipbuilding markets.
The order book includes six chemical tankers for Norway-based Rederiet Stenersen AS, four ammonia dual-fuel bulk carriers for Energy ONE Limited, four harbour tugs for Svitzer and a training ship for the Royal Navy of Oman.
A ₹6,500 crore order book provides long-term visibility
A strong order book is an important indicator for shipbuilding companies because vessels typically take considerable time to design, construct and deliver. Orders secured today can support future revenue, provided projects progress according to schedule and contractual conditions are met.
SDHI’s order book comprises projects across commercial shipping, specialised vessels and maritime services. The mix gives the company opportunities to serve customers in different segments rather than relying on a single category of shipbuilding.
However, an order book should not be confused with revenue already earned. The pace at which these orders translate into financial performance will depend on construction milestones, delivery schedules, project costs and customer requirements.
For SDHI, the immediate priority is to convert its secured contracts into completed vessels and deliver them within agreed timelines.
New orders strengthen the shipbuilding pipeline
One of the company’s notable developments is an order from Energy ONE Limited for four 92,500-deadweight-tonnage (DWT) ammonia dual-fuel bulk carriers. According to SDHI, this is the first order of its kind for an Indian shipyard, with deliveries expected to begin from FY30.
DWT refers to a ship’s carrying capacity, including cargo, fuel, provisions and other loads. Bulk carriers transport unpackaged commodities such as minerals, grains and other raw materials.
The vessels’ ammonia dual-fuel capability is particularly significant as the maritime industry explores alternatives to conventional marine fuels. Ammonia is being considered as a potential fuel for reducing shipping emissions, although its environmental benefits depend on how it is produced and the technology used onboard. Its adoption also requires careful management of toxicity, safety and operational challenges.
The contract could therefore provide SDHI with experience in building more technologically specialised vessels as the industry evaluates lower-emission shipping options.
The company has also secured an order from Svitzer, backed by the A.P. Moller–Maersk group, for four TRAnsverse 3200 harbour tugs. Deliveries are scheduled to begin in early 2028.
Harbour tugs assist larger ships with manoeuvring, berthing and other operations in ports. They are an essential part of maritime infrastructure, particularly at busy commercial terminals where safe and efficient vessel movement is critical.
Together, these contracts expand SDHI’s project pipeline and strengthen its presence in international shipbuilding markets.
Ship repair and refit operations remain important
Alongside new vessel construction, SDHI is developing its ship repair and refit business. During the first half of FY27, the company completed seven repair and refit projects involving Indian Coast Guard vessels, commercial ships and offshore rigs.
One of the major projects involved the refit and dry-docking of ICGS Samudra Pavak, a Pollution Control Vessel operated by the Indian Coast Guard.
The work included robotic hull scanning and hydroblasting, the overhaul of propulsion, steering and main engine systems, and a comprehensive upgrade of pollution control systems. SDHI said the project was delivered ahead of schedule.
Ship repair and refit services can provide shipyards with work beyond the construction of new vessels. These activities also require specialised technical expertise, maintenance infrastructure and the ability to minimise the time a vessel remains out of service.
For SDHI, this segment offers an opportunity to use its existing facilities and engineering capabilities to serve government and commercial customers.
SDHI shipyard in Gujarat, India.
Heavy engineering adds another growth avenue
SDHI’s operations also extend beyond shipbuilding. In heavy engineering, the company has commenced steel cutting for five barge unloaders, each designed to handle 2,500 tonnes per hour, for L&T Mines and Minerals.
Barge unloaders are industrial systems used to transfer bulk materials from barges to shore-based facilities. They can play an important role in ports and industrial supply chains that handle large volumes of raw materials.
The project illustrates how shipyard infrastructure and fabrication expertise can support other heavy industrial applications. Diversification across maritime and engineering projects may also help the company make broader use of its manufacturing capacity.
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Strategic partnership with DNV
SDHI has signed a strategic memorandum of understanding with DNV, an international organisation providing services including classification and technical assurance for the maritime industry.
The agreement is intended to strengthen SDHI’s capabilities across seven areas: design certification, repair projects, research and development, supplier ecosystem development, next-generation maritime technologies, digital adoption and cybersecurity.
The partnership could support the development of technical processes and capabilities needed to meet international maritime requirements. Design certification and technical assurance are particularly relevant when shipyards build vessels with increasingly complex systems or new fuel technologies.
Digitalisation and cybersecurity are also becoming more important as shipbuilding and vessel operations incorporate connected systems, digital engineering tools and automated processes.
The agreement establishes a framework for cooperation, although the announcement does not specify individual projects, financial commitments or implementation timelines.
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Capacity expansion under the national shipbuilding initiative
SDHI has received in-principle approval for a brownfield expansion under the Shipbuilding Development Scheme (SbDS). The proposed investment includes a 600-tonne Goliath crane and a 40-tonne ELL crane.
A brownfield expansion involves upgrading or expanding an existing industrial facility rather than building an entirely new site. For a shipyard, larger lifting equipment can support the movement and assembly of heavy vessel sections, potentially improving construction efficiency.
The proposed upgrades are intended to expand SDHI’s capabilities and improve operational efficiency at its dry dock, which measures 662 metres by 65 metres. The company also reports an annual fabrication capacity of 164,000 tonnes.
Eligible capital assistance and interest incentives remain subject to the scheme’s conditions. The in-principle approval should therefore not be interpreted as confirmation that all proposed financial support has been granted.
From turnaround to execution
Chief executive officer Rear Admiral Vipin Kumar Saxena, IN (retd.), said the first half of FY27 marked the company’s transition from turnaround to scaled execution. He added that SDHI had completed its resolution plan and settled its obligations to the Committee of Creditors, allowing management to focus on systems, processes, teams and delivery.
Saxena also pointed to renewed export orders as a sign of customer confidence in the company and India’s shipbuilding capabilities. He expects domestic demand to strengthen over the next 12 to 18 months, supported by government efforts to expand commercial shipbuilding and proposed defence programmes.
SDHI is backed by industrial conglomerate Swan Corp Limited and operates what it describes as India’s largest dry dock.
The company’s next challenge will be to translate its growing order book into timely deliveries, manage costs and expand production without compromising quality. Its revenue growth, international contracts, repair work and planned capacity upgrades provide several avenues for expansion, but sustained performance will depend on execution.
With a ₹6,500 crore order book and projects spanning conventional vessels, alternative-fuel ships, harbour tugs and heavy engineering, SDHI is positioning itself for a larger role in India’s shipbuilding ambitions. The coming years will show how effectively it converts that pipeline into completed projects and durable financial growth.
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