Essar Shipping Limited. (ESSARSHPNG) AI Stock Analysis

• Market Cap: ₹5.53B
• Dividend Yield: N/A
• Average Volume (3M): 63.43K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.76
• Revenue Growth: -189.01%
• EPS Growth: -87.15%
• Country: IN
• Employees: 46
• Sector: Services
• Sector Strength: N/A
• Industry: Marine Shipping
• EPS (TTM): -0.76
• 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: 48 Neutral
• Price Target: ₹26.00 ▲(1.72% Upside)

Essar Shipping Limited's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative equity. While technical analysis and valuation provide some positive aspects, they are overshadowed by the significant financial risks.

Positive Factors

Predictable time-charter revenue

A structural mix that includes time-charter revenue reduces reliance on spot rates and provides contracted, recurring cash inflows. Over months this steadier revenue profile supports predictable operating cash generation, better capex/maintenance planning and debt servicing capacity.

Positive operating & free cash flow (latest year)

Reported positive operating and free cash flow in the most recent year shows the business can generate cash from operations. Durable OCF supports working capital, routine capex and interest payments, giving the company a runway to stabilize operations and address liabilities if cash generation persists.

Net income improvement in 2025

The notable net income improvement in 2025 indicates a potential turnaround in operating performance or market conditions. If sustained across subsequent quarters, this can rebuild retained earnings, help restore equity and reduce leverage, enabling reinvestment in fleet and operations.

Negative Factors

Negative equity and high leverage

A balance sheet with negative equity and liabilities exceeding assets is a structural solvency concern. High leverage restricts financing options, raises default risk, and typically requires equity injections or asset sales to restore financial flexibility, a multi‑quarter challenge.

Severe revenue contraction

A ~-189% revenue change signals extreme top‑line volatility and contraction. For a capital‑intensive shipping business, this erodes scale economics and makes fixed cost absorption difficult, forcing reliance on long-term charters or sustained market recovery to restore sustainable cash flows.

Persistent negative margins and weak profitability

Consistent negative gross, EBIT and net margins show weak unit economics. Persistent margin deficits undermine cash generation needed to deleverage, increase risk of asset disposals or restructuring, and indicate the company must improve pricing, utilization or cost structure to reach sustainable profits.

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

Essar Shipping Limited exhibits significant financial instability with high leverage, negative equity, and volatile revenue growth. Despite some improvement in cash flow, the overall financial health remains precarious, posing substantial solvency and liquidity risks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	94.10M	102.60M	127.70M	606.70M	3.28B	4.72B
Gross Profit	1.43B	-88.60M	-697.50M	152.00M	-98.00M	-1.22B
EBITDA	8.06B	7.58B	83.30M	17.96B	3.82B	400.20M
Net Income	7.22B	6.60B	-1.18B	16.50B	-784.90M	-6.20B
Balance Sheet
Total Assets	0.00	3.00B	9.11B	10.47B	11.70B	20.84B
Cash, Cash Equivalents and Short-Term Investments	63.50M	63.50M	239.50M	270.90M	311.70M	333.10M
Total Debt	0.00	16.31B	26.42B	27.04B	39.12B	45.99B
Total Liabilities	23.80B	26.79B	35.85B	36.70B	58.16B	66.33B
Stockholders Equity	-23.80B	-23.80B	-28.07B	-27.42B	-49.14B	-48.13B
Cash Flow
Free Cash Flow	0.00	3.48B	-469.60M	5.14B	1.40B	412.90M
Operating Cash Flow	0.00	5.28B	-465.00M	5.14B	1.40B	965.60M
Investing Cash Flow	0.00	2.67B	567.20M	903.10M	4.93B	-536.60M
Financing Cash Flow	0.00	-2.08B	-705.20M	-9.69B	-6.27B	-862.30M

Essar Shipping Limited. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESSARSHPNG, the sentiment is Neutral. The current price of 25.56 is above the 20-day moving average (MA) of 24.99, below the 50-day MA of 26.94, and below the 200-day MA of 28.92, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 50.91 is Neutral, neither overbought nor oversold. The STOCH value of 87.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	₹6.89B	16.02	―	―	34.34%	2.00%
TRANSWORLD	60 Neutral	₹3.96B	-62.15	―	0.76%	10.69%	-203.58%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LANCER	51 Neutral	₹2.78B	-10.28	―	―	-22.87%	-143.53%
SNOWMAN	50 Neutral	₹6.48B	222.11	―	2.44%	9.91%	-66.86%
ESSARSHPNG	48 Neutral	₹5.53B	8.62	―	―	-189.01%	-87.15%
SICALLOG	39 Underperform	₹5.91B	-396.45	―	―	76.34%	94.50%

Essar Shipping Limited. Corporate Events

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.

Essar Shipping Partially Redeems Non-Convertible Debentures

Essar Shipping Limited announced the partial redemption of its 1% Secured, Redeemable, Unlisted, Unrated, Non-Convertible Debentures, initially issued to Abhinand Ventures Private Limited. This financial maneuver involves a redemption value of Rs. 654,600,000, with a total amount paid including interest and premium reaching Rs. 659,047,693. This move is part of the company’s strategic financial management, although it does not impact the capital structure or involve early redemption options.

Essar Shipping Limited Reports Financial Results for September 2025

Essar Shipping Limited announced the approval of its unaudited financial results for the quarter and half-year ended September 30, 2025, during a board meeting held on November 13, 2025. The announcement includes both standalone and consolidated financial results, which are accompanied by a limited review report. This development is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor confidence.