Swan Defence Shares Hit Upper Circuit On Ammonia-Fuel Ship Order

Shares of Swan Defence and Heavy Industries Ltd were locked in a 5% upper circuit at ₹1,703.45 on the Bombay Stock Exchange (BSE) on Tuesday after the company secured an order to build four 92,500 deadweight tonnage (DWT) dual-fuel ammonia bulk carriers.

At 9:40 am, Swan Defence and Heavy Industries Ltd’s shares continued to trade at this upper circuit level on the BSE. The stock has seen strong gains in recent months:

• Up 155% over the past six months.

• Gained 17% so far in 2026,

Swan Defence and Heavy Industries, earlier called Reliance Naval and Engineering, builds ships and undertakes heavy fabrication work from its facility on India’s west coast. The company runs the country’s largest dry dock. It spans 662 metres in length and 65 metres in width, with an annual fabrication capacity of about 164,000 tonnes.

Order Falls In ₹1,500–₹3,000 Crore Bracket

The company said the contract falls under its ‘Category 4’ orders, valued between ₹1,500 crore and ₹3,000 crore. The project marks a first for India. These will be the first ammonia dual-fuel ships to be built domestically. The vessels are also among the largest commercial ships ever constructed at an Indian yard.

The first vessel is expected to be delivered in October 2029. Subsequent deliveries are scheduled at four-month intervals.

This comes at a time when shipbuilders are looking to align with cleaner fuel technologies. Ammonia is still at an early stage as a marine fuel. The order signals a shift towards low-emission shipping solutions.

Technical Specifications And Global Partners

Each vessel will measure 229.5 metres in length and 37 metres in beam. They will be fitted with ammonia-based propulsion systems.

The ships have been designed by South Korea-based KMS-EMEC, while classification will be handled by Det Norske Veritas, the company said in a press release.

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Management Commentary

Vivek Merchant, director at the company, said the order reflects rising global confidence in Indian shipbuilding capabilities. He said that winning the project is an important step forward for the company. It reflected the confidence global stakeholders are placing in Indian shipbuilding.

He further added that ammonia as a marine fuel remains at an early stage, and the company aims to align with future industry trends through such projects.

Sources:

The Economic Times

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