Shares of Cochin Shipyard Limited (CSL) rose as much as two per cent to ₹1,920.30 apiece in Monday’s trading session after the company announced that it had secured a major new contract from Oil and Natural Gas Corporation Limited (ONGC).
In a regulatory filing on 17 September, Cochin Shipyard confirmed that it had signed an agreement with ONGC for dry dock and major lay-up repairs of one of the latter’s Jack-Up Rigs. The contract, valued at around ₹200 crore, is expected to be completed within 12 months.
The company described the development as a significant milestone in its premium offshore engineering portfolio, reinforcing its position as a trusted partner for public sector enterprises in the oil and gas industry. CSL also clarified that the deal does not constitute a related-party transaction and that none of its promoter group entities hold any interest in ONGC.
Cochin Shipyard shares have rewarded investors handsomely in recent years. Despite volatility in the Indian stock market, the stock has surged 44 per cent over the past six months and 12 per cent in one year. Over a five-year horizon, CSL has proven to be a multibagger, soaring more than 1,023 per cent.
The shipbuilder has also reported robust earnings. For the June quarter of FY25, net profit rose 7.9 per cent year-on-year to ₹187.8 crore, compared to ₹174 crore a year earlier. Quarterly revenue jumped 38.5 per cent to ₹1,068 crore, up from ₹771.5 crore in Q1FY25.
On the operating front, EBITDA increased 35.7 per cent to ₹241.3 crore, against ₹177.8 crore in the corresponding period last year. However, EBITDA margin slipped slightly by 50 basis points to 22.5 per cent, compared with 23 per cent in the same quarter of FY24.
