Kochi: Cochin Shipyard Limited (CSL), a leading public sector shipbuilding and ship repair company under the Ministry of Ports, Shipping and Waterways, has reported a 50% year-on-year decline in consolidated Profit After Tax (PAT) to Rs 53.77 crore for the second quarter of FY 2026-27.
The company had recorded a consolidated net profit of Rs 107.52 crore in the corresponding quarter of the previous financial year.
Despite the decline in profitability, CSL reported growth in its income during the July-September quarter. Total income increased to Rs 1,331.81 crore, compared with Rs 1,245.88 crore in Q2 FY26.
Revenue from operations stood at Rs 1,249.19 crore, against Rs 1,118.59 crore in the year-ago quarter, registering growth of approximately 11.7%.
Higher Operating Expenses Impact Cochin Shipyard’s Profit
The decline in net profit was mainly driven by a significant rise in expenses during the quarter.
Total expenses increased to Rs 1,256.72 crore in Q2 FY27 from Rs 1,095.97 crore in the corresponding period last year.
The cost of materials consumed stood at Rs 682.78 crore, while subcontracting and other direct expenses amounted to Rs 275.80 crore. Employee benefit expenses also increased to Rs 127.90 crore.
In addition, other income declined to Rs 82.62 crore from Rs 127.30 crore in the year-ago quarter, adding further pressure on profitability.
Consequently, consolidated Profit Before Tax (PBT) fell to Rs 75.10 crore from approximately Rs 149.91 crore in Q2 FY26.
Read also: Cochin Shipyard Signs MoUs with Four Kerala Engineering Colleges to Boost Research and Innovation
Ship Repair Business Records Strong Growth
CSL’s segmental performance showed different trends in its shipbuilding and ship repair businesses during the second quarter.
The shipbuilding segment reported revenue of Rs 783.14 crore, compared with Rs 758.98 crore in the corresponding quarter last year. However, the segment recorded a loss before interest and tax of Rs 6.08 crore, against a profit of Rs 149.71 crore in Q2 FY26.
On the other hand, the ship repair segment delivered a stronger performance. Its revenue increased to Rs 466.05 crore from Rs 359.60 crore in the year-ago period.
The segment’s profit before interest and tax more than doubled to Rs 143.34 crore, compared with Rs 67.20 crore in the corresponding quarter last year.
Cochin Shipyard Declares Rs 3 Interim Dividend
Along with announcing its financial results, the Board of Directors of Cochin Shipyard Limited has declared an interim dividend of Rs 3 per equity share with a face value of Rs 5 for FY 2026-27. This represents a dividend payout of 60%.
The company has fixed November 16, 2026, as the record date to determine the shareholders eligible to receive the interim dividend.
The dividend will be paid to eligible shareholders on or before December 9, 2026.
Revenue Growth Continues Despite Profit Decline
Cochin Shipyard’s Q2 FY27 results present a mixed financial picture. While the company recorded growth in total income and revenue from operations, higher operating expenses, lower other income and weaker performance in the shipbuilding segment affected its overall profitability.
Meanwhile, the strong performance of the ship repair business provided support to the company’s operations during the quarter.
About Cochin Shipyard Limited
Cochin Shipyard Limited (CSL) is a leading public sector shipbuilding and ship repair company under the Ministry of Ports, Shipping and Waterways, Government of India. Headquartered in Kochi, Kerala, the company is engaged in building and repairing a wide range of vessels for defence and commercial customers. It plays an important role in India’s maritime and shipbuilding sectors.
