Cochin Shipyard Q1 Results: Net profit falls 19.5% to ₹151 crore as margins shrink

Cochin Shipyard, a leading shipbuilding and repair yard in India, released its financial performance for the June quarter today, post market hours, reporting a 19.4% year-on-year decline in consolidated net profit to ₹151.45 crore, compared with ₹188 crore in the corresponding quarter last year.

The decline in profitability was primarily driven by lower revenue across both shipbuilding and ship-repair segments, coupled with a weaker segment mix.

On a sequential basis, the net profit came in lower as it declined by 45.2% from ₹276.48 crore in the March quarter, while the revenue fell 26.3%.

Its revenue from operations rose 2.4% YoY to ₹1,094.21 crore, from ₹1,068.59 crore in Q1 FY26.

The pressure was visible at the operating level, with EBITDA standing at around ₹193.18 crore, compared with ₹240.34 crore in the year-ago period, while the EBITDA margin moderated to around 17.7% from 22.5% a year earlier.

In terms of segment-wise performance, the shipbuilding business remained the key growth driver, with revenue rising 59.5% YoY to ₹700.04 crore from ₹438.97 crore, while segment profit (PBIT) jumped 75.5% to ₹63.89 crore from ₹36.41 crore.

In contrast, the ship-repair business witnessed a sharp decline, with revenue falling 37.4% YoY to ₹394.17 crore from ₹629.62 crore, while segment profit declined 51.5% to ₹135.02 crore from ₹278.24 crore.

The company's total expenses increased 9.1% YoY to ₹958.76 crore during the quarter, compared with ₹873.38 crore a year ago. The cost of materials consumed rose to ₹453.26 crore from ₹325.06 crore, while finance costs increased to ₹25.36 crore from ₹12.17 crore.

Shares remain volatile

The company's shares have remained volatile, largely trending lower since hitting a record high of ₹2,979 apiece in July 2024. After reaching that peak, the stock closed six of the following seven months in the red. Although it recovered some of its losses in the subsequent months, the recovery proved to be short-lived.

Even as broader defence stocks have started attracting investor interest again, the stock has remained weak in 2026, losing 8% so far after delivering a modest 6% return in 2025. At its current trading price of ₹1,496, the stock is around 50% below its all-time high.

Nevertheless, the stock's long-term performance remains impressive, with shares trading 363% higher over the past three years and 740% higher over the last five years.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.