Dredging Corporation of India (DCIL) shares rose after the company signed a memorandum of understanding with Colombo Dockyard PLC, marking a step in maritime cooperation between India and Sri Lanka. The stock advanced seven point four six per cent to Rs 902.10 as investors reacted to the tie-up. The memorandum aims to combine DCIL's dredging fleet and operational expertise with Colombo Dockyard's ship repair and shipbuilding infrastructure to deliver timely and cost-effective solutions.

Under the agreement, both companies will provide comprehensive ship repair and dry-docking services for DCIL's fleet and will jointly explore shipbuilding opportunities, particularly specialised dredgers and offshore support vessels. The partnership contemplates retrofitting, maintenance and dry-docking to enhance lifecycle efficiency and reduce turnaround times. Technical collaboration and knowledge sharing are expected to strengthen regional maritime capabilities.

DCIL's managing director and chief executive officer indicated that the memorandum reflected a commitment to operational excellence, fleet modernisation and expanding regional partnerships while aiming to enhance lifecycle efficiency and to explore new shipbuilding avenues. Colombo Dockyard's chief executive described the collaboration as reinforcing the company’s position as a preferred maritime service provider in South Asia and as opening channels for technological exchange and sustainable growth. Both parties plan to leverage complementary strengths to offer cost-effective services.

The company reported a standalone net loss of Rs 246.3 million (mn) in the third quarter of fiscal year 26, against a net profit of Rs 160.6 mn in the same quarter a year earlier, as revenue from operations declined 14.9 per cent year on year to Rs 2,760.8 mn. Dredging Corporation of India provides integrated dredging services to ports, the Indian Navy and other maritime organisations. Market observers noted that the strategic tie-up could create new revenue streams while supporting fleet modernisation and regional cooperation.