Cochin Shipyard's net profit halved in the September quarter. Standalone net earnings slumped 51% to ₹53 crore from ₹108 crore a year earlier, hit by an operational loss inside its core construction yards.
Top-line expansion offered little shelter. Standalone revenue climbed 12.9% to ₹1,074 crore, up from ₹951 crore in the year-ago period. Yet higher billings failed to protect operating returns. Earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 31% to ₹51 crore. Operating margin contracted 250 basis points to finish at 4.1%, down from 6.6% in the same quarter last year.
The earnings drag traced directly to the primary yard floor. While shipbuilding revenue edged up to ₹783 crore from ₹759 crore a year earlier, execution costs wiped out returns. Profit before tax for the vessel construction division swung to a loss of ₹6 crore, reversing sharply from a ₹150 crore profit booked during the corresponding quarter of the prior fiscal year.
The repair docks told a completely different story. Commercial ship repair generated ₹466 crore in quarterly revenue, up 29.4% from ₹360 crore a year ago. Segment profit before interest and tax leaped to ₹143 crore, more than doubling from ₹67 crore.
| Operational Metric (₹ Crore) | Q2 Current Period | Q2 Year-Ago Period | YoY Change (%) |
|---|---|---|---|
| Standalone Revenue | 1,074 | 951 | +12.9% |
| Standalone EBITDA | 51 | 74 | -31.0% |
| EBITDA Margin (%) | 4.1% | 6.6% | -250 bps |
| Standalone Net Profit | 53 | 108 | -50.9% |
| Shipbuilding Segment Revenue | 783 | 759 | +3.2% |
Balance sheet pressures mounted alongside the operating squeeze. Total corporate borrowings spiked 62% over the prior year's mark. At the same time, working capital tie-ups drained liquidity. Consolidated cash flow from operations at the end of the first half stood at a negative ₹635 crore.
Market Context: The steep deceleration leaves management well behind its stated full-year trajectory. Executive guidance had targeted 12% revenue growth—with an upside target of 15%—alongside an EBITDA margin of 14%. At the halfway mark, actual revenue growth stands at 7%, while operating margins languish at 9%.
Shares of Cochin Shipyard gained 4.3% to close at ₹1,290 on Monday, ahead of the earnings disclosure. The stock trades 30% below its 52-week peak of ₹1,842.8. Traders will test the stock's valuation on Wednesday, November 11, when bourses reopen to absorb the full impact of the second-quarter contraction.
| Shipbuilding Segment PBT | -6 | 150 | Swung to Loss |
| Ship Repair Segment Revenue | 466 | 360 | +29.4% |
| Ship Repair Segment PBIT | 143 | 67 | +113.4% |
| Total Borrowings YoY Change | — | — | +62.0% |
| H1 Consolidated Operating Cash Flow | -635 | — | Negative Outflow |