| Transworld Shipping Lines Limited | ||||
| Rating placed on 'Watch Developing' | ||||
| Rating Action | ||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||
| 1 crore = 10 million | ||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has placed its rating on the long-term bank facilities of Transworld Shipping Lines Ltd (TSLL; erstwhile Shreyas Shipping and Logistics Ltd) on 'Rating Watch with Developing Implications'.
On March 20, 2026, TSLL announced that it has entered into a memorandum of agreement (MoA) for the sale of a container vessel, namely SSL Krishna, to Avana Logistek Ltd (Avana). The company’s fleet comprises 12 vessels, including 10 container feeder vessels and 2 dry handy-size bulk vessels, out of which SSL Krishna, a container feeder vessel, has been sold to Avana for $11.9 million (~Rs 110 crore). The sale is expected to be completed by the first quarter of fiscal 2027. Crisil Ratings will engage with the company’s management to understand its plans for utilisation of sale proceeds, business plan with regards to other vessels and impact on the business and financial risk profiles of the company.
The rating action factors in the impact of the ongoing conflict in the Middle East as TSLL has deployed three of its vessels, namely SSL Kaveri, SSL Krishna and SSL Godavari; out of these, SSL Kaveri is stuck at Jebel Ali Port in Dubai, UAE, and operations have been halted for SSL Kaveri. Crisil Ratings will continue to monitor the impact of the war on the company’s operating performance, including the status of SSL Kaveri.
In the third quarter of fiscal 2026, TSLL acquired two promoter-owned companies, namely Transworld Logistics Pvt Ltd (TLPL) and Transworld Integrated Logistek Pvt Ltd (TILPL), involved in shipping and freight forwarding businesses, for total consideration of Rs 27 crore. These companies generated revenue of Rs 204.79 crore in fiscal 2025 and had negligible working capital debt of Rs 5-10 crore. The acquisition was funded through the existing liquidity of TSLL.
In the first nine months of fiscal 2026, the company has reported consolidated revenue of Rs 413 crore (including two new subsidiaries) with Ebitda (earnings before interest, tax, depreciation and amortisation) margin of 9.8% (compared with 24.1% in the corresponding period of fiscal 2025). Revenue of the shipping segment has been impacted by 18%, declining from Rs 336 crore in the first nine months of fiscal 2025 to Rs 275 crore in the first nine months of fiscal 2026 on account of operational issues in four old vessels owned by the company, and the operating margin was impacted on account of lower absorption of fixed cost (vessel standing cost) and higher repair cost for repair / Scheduled ITSS of vessels.
The rating continues to reflect the established market position of TSLL in the shipping business, the steady cash flow from the long-term free carrier (FCA) with Avana, and operational and financial synergies with the Transworld group, which has extensive experience in shipping and logistics. These strengths are partially offset by modest financial risk profile, susceptibility to fluctuation in charter rates and exposure to intense competition in the global shipping industry. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of TSLL and its wholly owned subsidiaries.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Established market position TSLL is one of the leading shipping companies in India with a legacy of more than three decades in owning and operating ships. It has a fleet of 12 vessels (10 containers and two DB) with total capacity of 22,066 TEU (twenty-foot equivalent unit) for container vessels, and gross registered tonnage (GRT) of 279,962. Of this, SSL Krishna having capacity of 2,490 TEUs and GRT of 27,322 is being sold. Average fleet age was 21.92 years as on March 31, 2025. The company mitigates the risk of ageing fleet with timely dry-docking of vessels, scrapping and subsequent addition of new vessels.
Currently, it has four ships which are nearing useful life and hence require constant repairs, resulting in loss of vessel operating days and hence, lower absorption of fixed cost as (vessel standing cost) well as higher operational cost. The company plans to replace or scrap the vessels before December 2026, which will be monitorable.
Steady cash flow from long-term FCA; plans to operate DB vessels TSLL benefits from steady revenue visibility and cash flow supported by the long-term FCA with Avana. The strong position of Unifeeder in the global charter-hire market and strategic focus on India provide TSLL access to a wide global clientele for export-import (EXIM) as well as domestic cargo. The FCA has reduced cargo volume offtake and geopolitical risks as the entire container tonnage will be deployed by Avana.
Furthermore, TSLL plans to operate its two-owned DB vessels from fiscal 2027 and gradually take more DB vessels depending on market dynamics, reducing its involvement in pool arrangement. It has formed a joint venture with Dubai-based Bainbridge Navigation DMCC, which will be operational by first quarter of fiscal 2027, which will diversify the revenue profile and reduce dependence on the container segment.
Operational and financial synergies with the Transworld group Set up by R Sivaswamy in 1977, the Transworld group operates in India, the Middle East, the US, Europe and Sri Lanka. The group offers a range of shipping logistics services, including feeder (vessel-owning companies), coastal container shipping and logistics solutions. Furthermore, TSLL derives operational and financial synergies from its association with the group. The group provided financial support to TSLL in fiscal 2020, when it purchased a vessel from TSLL and leased it back to cushion the company’s liquidity. |
Key Rating Drivers - Weaknesses Modest financial risk profile The debt protection metrics remain moderate with net cash accrual to adjusted debt ratio of 0.2 time and interest coverage ratio of 2.02 times in the first nine months of fiscal 2026. The financial risk profile is likely to improve on account of sale of SSL Krishna, as the proceeds are likely to be utilised to bring down debt. As on December 31, 2025, the company had networth of Rs 830 crore and debt of Rs 285 crore with gearing of 0.3 time.. Improvement in the financial risk profile remains monitorable.
Exposure to volatility in spot charter rates and intense competition The company has chartered all 10 container vessels under the FCA to Avana. The two DB vessels purchased in fiscal 2022 have been chartered externally. While the FCA with Avana provides stability to cash flow, spot charter rates vary based on trade volumes, availability of ships and containers as well as demand and supply. TSLL therefore remains partly vulnerable to downturns in the shipping cycle and pricing volatility, and this can increase with DB vessels not covered under the FCA. Furthermore, intense competition may continue to restrict pricing power, thereby constraining operating profitability. TSLL is also susceptible to fluctuations in foreign exchange rates. However, this risk is mitigated by a natural hedge as most of the borrowing is in foreign currency or by the use of derivative instruments. |
Liquidity Adequate Unencumbered cash and bank balance of around Rs 43 as on December 31, 2025 (excluding DSRA and other lien marked fixed deposits totaling Rs 35 crore), will continue to support liquidity. The company has generated net cash accrual of Rs 29 crore in the first nine months of fiscal 2026 and is expected to generate ~Rs 40 crore for fiscal 2026. Timely, need-based financial support from the Transworld group is likely to continue. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company TSLL was incorporated in 1988 by the late R Sivaswamy to own and operate vessels for container feeder operations between Indian and international container trans-shipment ports. The company has diversified into logistics, transportation, warehousing and distribution services. It was the first company to provide coastal trans-shipment services at several domestic ports, including Jawaharlal Nehru Port Authority in Nhava Sheva, Maharashtra. Post sale of its containerised domestic coastal and EXIM feeder shipping business to Avana, the company follows an asset-heavy business model with owning and long-term chartering of vessels. |
Key Financial Indicators (Crisil Ratings-adjusted financials)
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Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
& - Swapped both interest and principal with foreign currency |
Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||
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Criteria Details
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