New Delhi: Cochin Shipyard Limited reported a mixed set of audited financial results for FY26, showing a decline in profitability despite moderate revenue growth. The state-owned shipbuilding company saw its consolidated net profit drop 13.5% year-on-year, even as operations remained steady across key segments.
FY26 Net Profit Drops Despite Revenue Growth
For the financial year ended March 31, 2026, Cochin Shipyard posted a consolidated net profit of ₹71,674 lakhs (₹716.74 crore), compared to ₹82,733 lakhs (₹827.33 crore) in FY25.
- Net profit decline: 13.5% YoY
- Total income: ₹5,43,169 lakhs (↑ 4.3%)
- Revenue from operations: ₹5,02,187 lakhs (↑ 4.2%)
- Total expenses: ₹4,43,266 lakhs (↑ 8.5%)
- EPS: ₹27.24 vs ₹31.45 last year
The company said higher costs in subcontracting, employee benefits, and finance expenses weighed on profitability.
Read also: PESB Fails to Find Suitable Candidate for Cochin Shipyard CMD Post; Fresh Selection Process Likely
Q4 FY26 Performance: Slight Decline in Profit
For the March 2026 quarter (Q4 FY26), CSL reported a consolidated net profit of ₹27,648 lakhs, compared to ₹28,719 lakhs in the same quarter last year, marking a 3.7% decline.
The company continued execution across shipbuilding and ship repair projects during the quarter.
Segment-Wise Performance: Shipbuilding Grows, Repairs Decline
Performance across business segments showed mixed trends:
- Shipbuilding revenue: ₹3,36,557 lakhs (up from ₹2,95,539 lakhs)
- Ship repair revenue: ₹1,65,630 lakhs (down from ₹1,86,457 lakhs)
Growth in shipbuilding helped offset weakness in the repair division.
Dividend Announcement for FY26
The Board of Directors has recommended a final dividend of ₹1.5 per equity share (face value ₹5).
- Subject to approval at the upcoming AGM
- Payable within 30 days after declaration
This reflects continued shareholder returns despite earnings pressure.
Auditor Report and Governance Observation
CSL’s statutory auditors issued an unmodified (clean) audit opinion on FY26 results.
However, the report highlighted a governance concern:
- Lack of required independent directors
- Non-constitution of Audit Committee and Nomination & Remuneration Committee
- Non-compliance with Companies Act, 2013 and SEBI LODR norms
The company stated that appointments are under the Government of India’s jurisdiction and has forwarded requests accordingly.
Project Updates: Vessel Delays and Hydrogen Fuel Cell Asset
Passenger Vessel Delay (Andaman & Nicobar Project)
- Two passenger vessels remain incomplete
- Delivery timelines have expired
- Construction suspended pending reassignment
- Liquidated damages already recognized:
- ₹11,814 lakhs (first vessel)
- ₹9,756 lakhs (second vessel)
No additional provisions have been made beyond earlier recognition.
Hydrogen Fuel Cell Vessel
- Completed R&D vessel now classified as “Held for Sale”
- Ministry has clarified ownership
- Sale discussions are currently underway
About Cochin Shipyard
Cochin Shipyard Limited is one of India’s leading public sector shipbuilding and ship repair companies under the Government of India. It plays a key role in constructing commercial vessels, defence ships, and offshore structures, while also handling major ship repair projects for domestic and international clients. The company is also actively involved in green maritime innovation, including hydrogen fuel cell vessel development.
Read also: Hindustan Copper Q4 & FY26 Results: PAT ₹207 Cr, ₹1.86 Dividend Declared Despite One-Time Provision
