Shares of Cochin Shipyard Ltd. declined as much as 7.4% on Wednesday, Nov. 11, after the state-owned shipbuilder reported a 50% year-on-year decline in consolidated net profit for the September quarter, even as revenue registered double-digit growth.
At around 9:37 a.m., the stock was trading at Rs 1,198.4 on the NSE, down 7.10% from the previous close of Rs 1,290. The decline came even as the broader market traded higher, with the Nifty 50 gaining 1.38% at the same time.
The stock fell during the early trading session, with the earnings performance and sharp contraction in operating margins weighing on investor sentiment.
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Cochin Shipyard Q2 Results: Profit Falls 50%
Cochin Shipyard reported consolidated net profit of Rs 53.8 crore for the September quarter, compared with Rs 107.5 crore in the corresponding quarter last year. Revenue from operations, however, increased 11.7% YoY to Rs 1,249 crore from Rs 1,119 crore.
EBITDA or earnings before interest, taxes, depreciation, and amortsation declined 30.8% to Rs 50.95 crore from Rs 73.66 crore in the year-ago period. Ebitda margin contracted to 4.1% from 6.6%, highlighting the pressure on operating profitability despite higher revenue.
Shipbuilding Segment Weighs On Performance
A closer look at the segmental performance shows that the shipbuilding business faced significant pressure. Revenue from the segment increased to Rs 783.1 crore from Rs 759 crore, but it reported an operating loss of Rs 6.1 crore against an operating profit of Rs 149.7 crore in the corresponding quarter last year.
In contrast, the ship repair business delivered a stronger performance. Revenue from the segment rose to Rs 466.05 crore from Rs 359.6 crore, while operating profit more than doubled to Rs 143.3 crore from Rs 67.2 crore.
The company's board also declared an interim dividend of Rs 3 per equity share for FY27, with Nov. 16 fixed as the record date.
Cochin Shipyard Share Price Performance
The shipyard has been under pressure for over a year now. The stock lost around 32% in the past year, while in 2026 itself, it has been down over 26%.
Currently, it is trading at a price-to-earnings multiple of 54.18 times, with a market cap of Rs 31,377.64 crore on the NSE.
Also Read: Cochin Shipyard Dividend: PSU Declares Interim Dividend Of Rs 3/Share — Check Record Date
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