Cochin Shipyard’s profitability came under pressure in the first quarter of FY27 as a sharp decline in ship-repair revenue offset strong growth in its shipbuilding business.
The shipbuilder reported a 19.4 percent year-on-year decline in consolidated net profit to ₹151.45 crore for the quarter ended June 2026, compared with ₹188 crore in the corresponding period last year.
Revenue from operations, however, increased 2.4 percent to ₹1,094.21 crore from ₹1,068.59 crore a year earlier. The modest revenue growth failed to translate into higher profits as the company faced a weaker business mix and higher expenses.
On a sequential basis, the performance was weaker. Net profit fell 45.2 percent from ₹276.48 crore in the March quarter, while revenue declined 26.3 percent.
The pressure was more visible at the operating level. EBITDA declined to ₹193.18 crore from ₹240.34 crore in the year-ago quarter, while the EBITDA margin narrowed to around 17.7 percent from 22.5 percent.
Total expenses rose 9.1 percent year-on-year to ₹958.76 crore from ₹873.38 crore. Material costs increased sharply to ₹453.26 crore from ₹325.06 crore, while finance costs more than doubled to ₹25.36 crore from ₹12.17 crore.
The shipbuilding segment remained the bright spot during the quarter. Revenue from the business jumped 59.5 percent year-on-year to ₹700.04 crore from ₹438.97 crore.
Segment profit (PBIT) increased 75.5 percent to ₹63.89 crore from ₹36.41 crore, reflecting the stronger contribution from shipbuilding activities.
The performance, however, was more than offset by weakness in ship repair.
Revenue from the ship-repair business fell 37.4 percent to ₹394.17 crore from ₹629.62 crore in the year-ago quarter. Segment profit dropped 51.5 percent to ₹135.02 crore from ₹278.24 crore.
The sharp decline in this high-margin business was a key factor behind the contraction in overall profitability and operating margins.
Cochin Shipyard’s shares have remained volatile after hitting a record high of ₹2,979 in July 2024. The stock has struggled to regain that peak despite intermittent recoveries.
The shares have fallen around 8 percent so far in 2026, following a modest 6 percent gain in 2025. At around ₹1,496, the stock is nearly 50 percent below its all-time high.
Despite the recent weakness, its longer-term returns remain strong. The stock is up around 363 percent over the past three years and about 740 percent over five years.
The June-quarter results underline the challenge for Cochin Shipyard: while its shipbuilding order pipeline and segment growth remain encouraging, a sustained recovery in the higher-margin ship-repair business will be important for restoring profitability and margins.
