Cochin Shipyard Shares Fall for Second Day; Reports 28% Drop in Q3 FY25 Net Profit

Cochin Shipyard’s Q3 FY25 results met expectations with strong ship repair performance compensating for weaker shipbuilding. Despite an 8.6% rise in revenue, net profit dropped by 28%, and stock performance shows a dip.

Share Price Performance

Cochin Shipyard’s share price traded at ₹1,366.40, at 10:00 AM on the NSE, reflecting a decline of ₹45.05 or 3.19% from its previous close of ₹1,411.45. The stock opened at ₹1,335.00 and reached a high of ₹1,374.55 during the session, with a low of ₹1,335. The drop in the share price today added to yesterday’s losses of around 0.87%.

Cochin Shipyard’s stock has recently faced a downturn, falling by 8.3% since January 2025. However, this follows a rally in the past two years, with the stock more than doubling in both 2023 and 2024. It surged by 127% in 2024 and another 153% the year before.

Q3 FY25 Financial Performance

Cochin Shipyard reported a 28% decline in net profit, falling to ₹177 crore from ₹244 crore in the same quarter last year. Revenue increased by 8.6%, reaching ₹1,148 crore compared to ₹1,056 crore in Q3 FY24.

However, EBITDA saw a 23% drop, totalling ₹237 crore against ₹310 crore year-on-year, and the operating margin narrowed by 870 basis points to 20.7% from 29.3% in Q3 FY24.

The decrease in net profit and margin was mainly attributed to weaker performance in shipbuilding, though strong growth in the ship repair segment helped mitigate some of the challenges. Looking ahead, Cochin Shipyard anticipates that the INS Vikramaditya repair order will support margins through Q1 FY26.

Business Development: Expansion of UCSL’s Order Book

Udupi Cochin Shipyard Limited (UCSL), a wholly owned subsidiary of Cochin Shipyard Limited (CSL), has secured a significant order from Ocean Sparkle Limited, an Adani Group company, for the construction of eight 70T Bollard Pull ASD tugs.

The tugs, which will be delivered between December 2026 and August 2028, are designed to meet the Approved Standard Tug Design and Specifications (ASTDS) by the Government of India, supporting the Atma Nirbhar Bharat initiative.

This order adds to UCSL’s growing portfolio, which includes ongoing projects like three additional tugs for Ocean Sparkle and various vessel constructions for international clients. With an order book exceeding INR 2000 crore, UCSL continues to expand its capabilities, positioning itself as a key player in the Indian shipbuilding sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.