Essar Shipping Limited. (ESSARSHPNG) AI Stock Analysis

• Market Cap: ₹4.89B
• Dividend Yield: N/A
• Average Volume (3M): 63.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -189.01%
• EPS Growth: -87.15%
• Country: IN
• Employees: 46
• Sector: Services
• Sector Strength: N/A
• Industry: Marine Shipping
• EPS (TTM): -4.26
• Shares Outstanding: 206,976,060
• 10 Day Avg. Volume: 117,230
• 30 Day Avg. Volume: 63,430
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.20
• Price to Sales (P/S): 45.81
• P/FCF Ratio: 1.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹24.50 ▼(-4.15% Downside)
• Action: Upgraded Date: 03/06/26
• Date: Action: Upgraded 03/06/26

The score is driven primarily by weak financial fundamentals—negative operating profitability, volatile revenue, and a stressed balance sheet with negative equity—partly offset by improved recent operating/free cash flow. Technicals add further pressure with the stock trading below key moving averages and a negative MACD, while valuation is difficult to assess due to the negative P/E and no dividend yield data.

Positive Factors

Operating & free cash flow generation

Recent positive operating and free cash flow indicate the company can convert operations into cash, providing durable liquidity to meet near-term obligations and fund vessel upkeep. Sustained cash generation reduces reliance on external funding and supports operational continuity over months.

Time-charter revenue provides predictability

A business model that includes time-charter contracts yields steadier, contracted cash inflows versus pure spot exposure. Persistently securing time-charters improves revenue visibility, aids budgeting for maintenance and debt service, and cushions the company through cyclical freight cycles.

Revenue diversification via ship management and cargo types

Earning from both transport services and ship/technical management creates multiple revenue streams. This structural diversification can stabilize cash flow across shipping cycles, allow cross-selling of services, and lower dependence on a single market segment over the medium term.

Negative Factors

Persistent negative margins and operating losses

Sustained negative gross and EBIT margins erode retained capital and signal structural earnings weakness. Over months, persistent losses restrict reinvestment in the fleet, reduce ability to absorb shocks, and force dependence on external capital or asset sales to fund operations and capex.

Highly leveraged balance sheet; negative equity

Negative equity and elevated leverage indicate solvency strain and limited financial flexibility. This condition raises refinancing risk, increases borrowing costs, and can necessitate deleveraging through asset disposals or restructuring, constraining long-term fleet renewal and growth plans.

Severe revenue decline and high volatility

Large, volatile revenue declines impair forecasting, weaken negotiating leverage for long-term charters, and reduce fixed-cost coverage. Over a multi-month horizon, unstable top-line trends make operating planning harder and heighten the risk that cash generation will revert to negative under adverse market swings.

Essar Shipping Limited. Business Overview & Revenue Model

Company Description

Essar Shipping Limited, a shipping company, provides sea transportation, logistics, and oilfields services. The company is involved in the fleet operating and chartering activities consisting of tankers and dry bulkers; and oilfields services, such as land and semi- submersible rigs; and logistics services, including trucks, trailers, and tippers. It also offers contract drilling services to oil and gas companies. The company operates a fleet of 12 vessels, including a double hull very large crude oil carrier, 6 mini-capesize vessels, a panamax bulk carrier, 2 supramax bulk carriers, and 2 general cargo ships. It operates in India, Singapore, Cyprus, the United Arab Emirates, Taiwan, Kuwait, Demark, and Bangladesh. The company was incorporated in 2010 and is based in Mumbai, India. Essar Shipping Limited is a subsidiary of Essar Shipping Mauritius Holdings Limited.

How the Company Makes Money

Essar Shipping Limited generates revenue through multiple key streams, primarily from its shipping services, including the transportation of crude oil, petroleum products, and bulk cargo. The company operates on a chartering model, earning income by leasing its vessels to third parties for specific periods or for particular cargo. This model allows Essar to optimize fleet utilization and respond to market demands effectively. Additionally, the company engages in long-term contracts with major clients in the oil and gas sector, which provide a stable revenue base. Significant partnerships with industry players and involvement in large-scale logistics projects also contribute to its earnings, enhancing its market position and expanding its operational capabilities.

Essar Shipping Limited. Financial Statement Overview

Summary

Income statement and balance sheet signals are very weak: consistently negative gross/EBIT margins, volatile and declining revenue, and a highly levered balance sheet with negative equity (liabilities exceeding assets). Cash flow is a relative bright spot with positive operating and free cash flow in the latest year, but historical volatility keeps overall financial strength near the low end.

Income Statement

Essar Shipping Limited has faced a challenging financial period, evident from negative gross and net profit margins. The company reported a significant net income improvement in 2025, but it was not indicative of operational efficiency given the consistent negative EBIT and gross profit margins. Revenue growth has been volatile, showcasing a decline in recent years, which raises concerns about long-term sustainability.

Balance Sheet

The balance sheet reflects high leverage with a negative equity, indicating financial instability. The debt-to-equity ratio is unfavorably high due to the negative stockholders' equity, posing significant financial risk. The equity ratio is negative, signifying that liabilities exceed assets, which raises concerns about the company's solvency.

Cash Flow

The cash flow statement presents a mixed picture, with positive operating cash flow and free cash flow in the latest year, suggesting some ability to generate cash operationally. However, the high variability in free cash flow growth and negative past figures highlight potential liquidity issues. The operating cash flow to net income ratio is favorable for 2025, but historical fluctuations indicate inconsistency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	-1.38B	102.60M	127.70M	606.70M	3.28B	4.72B
Gross Profit	-56.70M	-88.60M	-697.50M	152.00M	-98.00M	-1.22B
EBITDA	1.41B	7.58B	83.30M	17.96B	3.82B	400.20M
Net Income	641.90M	6.60B	-1.18B	16.50B	-784.90M	-6.20B
Balance Sheet
Total Assets	2.97B	3.00B	9.11B	10.47B	11.70B	20.84B
Cash, Cash Equivalents and Short-Term Investments	53.00M	63.50M	239.50M	270.90M	311.70M	333.10M
Total Debt	16.45B	16.31B	26.42B	27.04B	39.12B	45.99B
Total Liabilities	26.68B	26.79B	35.85B	36.70B	58.16B	66.33B
Stockholders Equity	-23.71B	-23.80B	-28.07B	-27.42B	-49.14B	-48.13B
Cash Flow
Free Cash Flow	-216.70M	3.48B	-469.60M	5.14B	1.40B	412.90M
Operating Cash Flow	61.00M	5.28B	-465.00M	5.14B	1.40B	965.60M
Investing Cash Flow	518.90M	2.67B	567.20M	903.10M	4.93B	-536.60M
Financing Cash Flow	-572.20M	-2.08B	-705.20M	-9.69B	-6.27B	-862.30M

Essar Shipping Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESSARSHPNG, the sentiment is Negative. The current price of 25.56 is above the 20-day moving average (MA) of 24.96, below the 50-day MA of 25.90, and below the 200-day MA of 28.10, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 40.61 is Neutral, neither overbought nor oversold. The STOCH value of 39.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESSARSHPNG.

Essar Shipping Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITCO	62 Neutral	₹5.62B	18.26	―	―	34.34%	2.00%
TRANSWORLD	60 Neutral	₹2.93B	-4.30	―	0.76%	10.69%	-203.58%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SNOWMAN	50 Neutral	₹5.73B	-89.54	―	2.44%	9.91%	-66.86%
LANCER	48 Neutral	₹2.26B	-10.73	―	―	-22.87%	-143.53%
ESSARSHPNG	42 Neutral	₹4.89B	-1.60	―	―	-189.01%	-87.15%
SICALLOG	39 Underperform	₹13.78B	3.00	―	―	76.34%	94.50%

Essar Shipping Limited. Corporate Events

Essar Shipping Partially Redeems Rs. 1,552 Crore in Non-Convertible Debentures

Essar Shipping Limited has partially redeemed a tranche of its 1% secured, redeemable, unlisted and unrated non-convertible debentures issued to Abhinand Ventures Private Limited, in line with the original terms of issue. The company redeemed 14,442,000 debentures with a face value totalling Rs. 1,444.2 crore on February 26, 2026, paying Rs. 1,552.25 crore including Rs. 108.05 crore in interest, following an earlier redemption in January, while 24,262,750 debentures remain outstanding and the firm reported no impact on its capital structure from this transaction.

Essar Shipping Files SEBI Dematerialisation Compliance Certificate for December Quarter

Essar Shipping Limited has submitted to BSE and NSE a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming that all securities received for dematerialisation were duly verified, accepted or rejected, and that corresponding physical certificates were mutilated, cancelled and replaced in records with the depositories as the registered owners. Issued by the company’s registrar and transfer agent, Data Software Research Co. Pvt. Ltd., the filing underscores Essar Shipping’s adherence to regulatory requirements governing dematerialisation and strengthens assurance for investors and market regulators regarding the integrity and proper handling of its listed securities.

Essar Shipping Mauritius Holdings to Acquire 10.34% Stake in Essar Shipping Limited

Essar Shipping Mauritius Holdings Limited, a promoter group entity of Essar Shipping Limited, plans to acquire a 10.34% equity stake in the company from IDH International Drilling Holdco Limited through an inter-se transfer. This acquisition, exempt from an open offer under SEBI regulations, is part of a strategic realignment within the promoter group, potentially impacting the company’s shareholding structure and market perception.