Yes, is possible. You can play around more if you want too, but i'm not impressed by what it performs in KDE Plasma Dolphin (totally different than Thunar or Caja in a GTK environment) ...
Create ~/.local/share/kservices5/ServiceMenus/extracthere_engrampa.desktop folders/file and paste this code in it:
[Desktop Action extractHere]
Exec=engrampa "--extract-to=$(pwd)" --extract-here --force "$@"
[Desktop Action extractTo]
Exec=engrampa "--default-dir=$folder" --extract "$@"
Name=Extract to ...
[Desktop Action compress]
Exec=engrampa "--default-dir=$folder" --add "$@"
Open Dolphin > Configure > Services and activate the 3 that have then Engranpa icon.
The problem with this approach is that all files/folders/archive will display those options ALWAYS.
The smart way is to define, for the extract part what filetype of archives to handle, so they display only for those particular files/archives. That is why, for instance if you compare with the 7z actions menu that you can download, you will see that each has a long and different list of
ServiceTypes for extract ... and only the compress has the
ServiceTypes i used above in my generic example. So, that means you will have to create at least two desktop files, one for extract and one for compress aka create archive, but i honestly will not continue with examples as it takes way too much time to explain.
Here is a list for the
ServiceTypes extract part:
In order for those options to be seen without subMenu (Ark and 7z has that submenu), the
X-KDE-Submenu entry has to not exist in the desktop file (the way i have it in my example if it happens that you will look at the 7z menu actions).