Cochin Shipyard shares extend losing streak, drop 4% after Q1 net profit falls 19%

Shares of Cochin Shipyard, a leading shipbuilding and repair yard in India, dropped 4% in intraday deals on Monday, falling to ₹1,435 apiece, in reaction to the company's weak set of numbers for the June quarter.

The company, on Friday, post market hours, reported 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.

Compared to the March quarter, the net profit came in even lower by 45.2%, while revenue from operations rose 2.4% YoY to ₹1,094.21 crore from ₹1,068.59 crore in Q1 FY26. However, it fell 26% on a QoQ basis, as it stood at ₹1,484 crore in Q4 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.

Its total expenses rose to ₹958.76 crore in the June quarter of this fiscal, from ₹873 crore in the same period a year ago.

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.

Meanwhile, looking at the company's other development, its OFS received a strong response from investors. The OFS forms part of the government's disinvestment programme through the Department of Investment and Public Asset Management (DIPAM), which periodically offers stakes in public sector enterprises to investors through the stock exchange mechanism.

Cochin Shipyard is one of the leading shipbuilding and repair yards in India. It also has an exclusive area set aside for offshore construction and future expansion.

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.