Cochin Shipyard’s Q2 profit falls 50% despite higher revenue; ₹3 dividend declared

Cochin Shipyard Limited reported a 50% year-on-year decline in consolidated net profit to ₹53.77 crore for the quarter ended 30 September 2026, as rising expenses and lower other income offset revenue growth. The state-owned shipbuilder’s revenue from operations increased 11.7% to ₹1,249.19 crore, compared with ₹1,118.59 crore a year earlier.

The board approved the unaudited results on 10 November and declared an interim dividend of ₹3 per equity share for financial year 2026–27. The results showed contrasting performances across the company’s two principal businesses, with ship repair strengthening while shipbuilding slipped into a segment loss.

Why did profit decline despite revenue growth?

Total expenses increased 14.7% to ₹1,256.72 crore from ₹1,095.97 crore, growing faster than operating revenue. Materials consumed accounted for ₹682.78 crore, compared with ₹554.76 crore in the corresponding quarter of the previous year.

Subcontracting and other direct expenses also rose, reaching ₹275.80 crore against ₹242.02 crore.

Other income fell to ₹82.62 crore from ₹127.30 crore, reducing its contribution to earnings. Together, the higher expenditure and lower other income brought profit before tax down to ₹75.08 crore from ₹149.91 crore.

Earnings before interest, tax, depreciation and amortisation declined 30.8% to approximately ₹50.95 crore. The corresponding margin narrowed to 4.1%, compared with 6.6% a year earlier, indicating weaker operating profitability despite the increase in business volumes reflected in revenue.

How did shipbuilding and ship repair perform?

Shipbuilding revenue increased to approximately ₹783.1 crore from ₹759 crore in the September 2025 quarter. However, the segment recorded a loss of ₹6.08 crore, compared with a profit of ₹149.71 crore a year earlier.

Ship repair delivered a stronger performance. Revenue rose to ₹466.05 crore from ₹359.6 crore, while segment profit increased to ₹143.34 crore from ₹67.20 crore.

These figures show that repair activity provided an important earnings contribution during the quarter, although its improvement was insufficient to offset the deterioration in shipbuilding profitability and the reduction in other income.

What do the half-year results show?

For the six months ended 30 September 2026, consolidated revenue from operations reached ₹2,343.41 crore, compared with ₹2,187.18 crore in the corresponding period of the previous year.

Consolidated net profit declined to ₹205.22 crore from ₹295.36 crore. Basic earnings per share for the half-year fell to ₹7.80 from ₹11.23.

The September quarter also showed a sequential earnings decline. Net profit fell from ₹151.45 crore in the June quarter, even as operating revenue increased from ₹1,094.21 crore. Quarterly basic earnings per share stood at ₹2.04, compared with ₹4.09 a year earlier.

When will shareholders receive the interim dividend?

The board declared an interim dividend of ₹3 on each fully paid equity share with a face value of ₹5, equivalent to 60% of face value.

The company fixed 16 November 2026 as the record date for determining eligible shareholders. Payment is scheduled on or before 9 December 2026.

The dividend accompanies the approval of both standalone and consolidated results for the quarter and half-year. While revenue continued to expand, the latest figures place the focus on restoring shipbuilding profitability and sustaining the stronger contribution from ship repair.