Cochin Shipyard profit halves as shipbuilding losses weigh on Q2 results
Shares in the defence PSU fell 6.82% after net profit dropped to ₹53.77 crore despite revenue growth.
Shares in the defence PSU fell 6.82% after net profit dropped to ₹53.77 crore despite revenue growth. Published 2026-11-11 by Falling Shares.
| By Falling Shares Intelligence, edited by Wung Thomas, Editor-in-Chief
Written by Falling Shares Intelligence, our automated newsroom, from the public sources listed below and live market data. Every figure is checked against that material before publication, but the story has not been reviewed by a human editor. Check the linked sources before relying on it, and report errors to info@fallingshares.com.
Shares in Cochin Shipyard Limited fell 6.82% on Wednesday after the state-owned shipbuilder reported that second-quarter net profit nearly halved. The decline came despite an 11.7% rise in revenue, as higher expenses and a loss in the shipbuilding division eroded margins. The company also announced a ₹3 interim dividend.
Shipbuilding division drags margins
Cochin Shipyard reported a net profit of ₹53.77 crore for the quarter ended September, a drop of roughly 50% from the previous year. Mint reported that the profit decline occurred even as top-line revenue grew by 11.7%. The company cited higher expenses and a loss in its shipbuilding segment as key factors behind the weaker results.
Analysts at Antique Stock Broking highlighted that the weak profitability in the shipbuilding division, which resulted in an EBIT loss, dragged on overall margins. This factor contributed to the sharp sell-off in the stock during the latest trading session.
Cochin Shipyard also disclosed that borrowings had increased sharply by 62% compared to the same period last year. CNBCTV18 noted this rise in debt alongside the weak operating results for the second quarter.
Stock underperforms peers
The fall in Cochin Shipyard’s shares stood out against a broader market rally. In the same session, the NIFTY 50 index rose 0.8% and the NIFTY Infrastructure index gained 0.9%. Cochin Shipyard’s 6.82% drop meant it significantly underperformed both the broader market and its specific sector.
By Falling Shares' measure, almost all of the move was company-specific, with the stock falling 8.0% on company factors while the market and sector contributed positively. The stock is currently 33.8% below its 52-week high of ₹1,842.8.
The stock has struggled over the past year, falling 32.4% over the last 12 months. Falling Shares rates the stock Unstable, citing annualised volatility of 41.2% compared to 13.5% for the benchmark index. The stock has seen six sessions with moves of 5% or more in the past six months.