Cochin Shipyard Q2 Results: Consolidated PAT Plunges 50% to ₹53.77 Crore; Board Declares ₹3 Interim Dividend – Indian PSU
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 ₹53.77 crore for the second quarter of FY 2026-27.
The company had posted a consolidated net profit of ₹107.52 crore in the corresponding quarter of the previous financial year.
Despite the sharp decline in profitability, Cochin Shipyard reported an improvement in its total income, which increased to ₹1,331.81 crore during the July-September quarter, compared with ₹1,245.88 crore in the corresponding period last year.
Revenue from operations stood at ₹1,249.19 crore, against ₹1,118.59 crore in Q2 FY26, registering year-on-year growth of approximately 11.7%.
Rising Expenses Put Pressure on Profitability
The decline in net profit came amid a significant increase in operating expenses.
Total expenses rose to ₹1,256.72 crore during the quarter, compared with ₹1,095.97 crore in the year-ago period.
The cost of materials consumed increased to ₹682.78 crore, while subcontracting and other direct expenses stood at ₹275.80 crore. Employee benefit expenses also increased to ₹127.90 crore.
Additionally, other income declined to ₹82.62 crore from ₹127.30 crore in the corresponding quarter last year, further affecting the company’s bottom line.
Consolidated profit before tax (PBT) declined to ₹75.10 crore from approximately ₹149.91 crore in Q2 FY26.
Ship Repair Business Provides Support
The company’s segmental performance reflected contrasting trends in its shipbuilding and ship repair businesses.
Shipbuilding revenue increased marginally to ₹783.14 crore from ₹758.98 crore. However, the segment reported a loss before interest and tax of ₹6.08 crore, compared with a profit of ₹149.71 crore in the corresponding quarter last year.
In contrast, the ship repair segment recorded revenue of ₹466.05 crore, up from ₹359.60 crore. Its profit before interest and tax more than doubled to ₹143.34 crore from ₹67.20 crore.
₹3 Interim Dividend Declared
Meanwhile, the Board of Directors of Cochin Shipyard has declared an interim dividend of ₹3 per equity share of ₹5 face value for FY 2026-27, representing a 60% payout.
The company has fixed November 16, 2026, as the record date for determining shareholders eligible to receive the interim dividend.
The dividend will be paid on or before December 9, 2026.
The latest results present a mixed financial picture for the state-owned shipbuilder, with revenue continuing to grow but a substantial decline in profitability highlighting the pressure from higher expenses and weaker shipbuilding segment performance.
