Cochin Shipyard share price: Cochin Shipyard shares came under heavy selling pressure on Wednesday, November 11, after the defence PSU reported a sharp decline in its September quarter earnings. Despite an 11.7% increase in revenue, the company's consolidated net profit nearly halved year-on-year, with higher expenses and losses in its shipbuilding business weighing on performance.
The stock tumbled 8% to an intra-day low of ₹1,186.75. This marked a steep retreat from its 52-week high of ₹1,843.60, recorded in May 2026, although it remained above its 52-week low of ₹1,101.25 touched in October 2026.
The recent correction has been substantial, with the stock losing 2% over one month, 19% over three months, 29% over six months and 31% over one year. However, its long-term performance remains strong, with Cochin Shipyard delivering multibagger returns of 545% over five years.
Cochin Shipyard Q2 results
The September quarter exposed a sharp divergence between Cochin Shipyard's revenue growth and profitability. The Miniratna PSU reported consolidated net profit of ₹53.77 crore in Q2 FY27, down nearly 50% from ₹107.53 crore in the corresponding quarter of the previous financial year.
Revenue from operations, however, grew 11.7% year-on-year to ₹1,249.19 crore during July-September 2026, compared with ₹1,118.59 crore in Q2 FY26. Total income increased 6.9% to ₹1,331.81 crore from ₹1,245.88 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 30.7% year-on-year to ₹51 crore from ₹73.6 crore a year ago. EBITDA margin also contracted to 4.1% in the September quarter from 6.6% in the year-ago period.
The pressure on profitability was also reflected in the company's expenses, which climbed faster than revenue. Total expenses rose 14.7% year-on-year to ₹1,256.72 crore in Q2 FY27, against ₹1,095.97 crore in Q2 FY26.
A closer look at the segment performance showed that shipbuilding remained the biggest drag. Revenue from the division increased 3.2% year-on-year to ₹783.14 crore in the September quarter, compared with ₹758.98 crore a year earlier. However, the segment swung to a loss of ₹6.08 crore at the segment result level, against a profit of ₹149.71 crore in Q2 FY26.
The ship repair business, in contrast, delivered a significantly stronger performance. Its segment result more than doubled to ₹143.34 crore from ₹67.20 crore in the corresponding quarter last year, marking growth of around 113.3%.
Cochin Shipyard dividend
Despite the decline in quarterly earnings, Cochin Shipyard announced an interim dividend of ₹3 per equity share of ₹5 face value for FY27. The payout represents a 60% dividend on the face value of each share.
The company has set November 16, 2026, as the record date for identifying shareholders eligible to receive the dividend. The payment is scheduled to be completed on or before December 9, 2026.
The latest announcement follows a series of dividend payouts by the defence PSU. Cochin Shipyard paid ₹1.50 per equity share in September 2026, with September 18, 2026, serving as both the ex-date and record date. Before that, it announced an interim dividend of ₹3.50 per share in February 2026 and ₹4 per share in November 2025.
Should you buy Cochin Shipyard shares?
Antique Stock Broking has lowered its target price on Cochin Shipyard to ₹1,407 from ₹1,671 following the weak quarterly performance. However, the brokerage has retained its 'Hold' rating, pointing to execution challenges and expensive valuations. The new target implies an upside potential of 18.5% from today's low.
The brokerage flagged the sharp shortfall in Ebitda and profit during the September quarter, even though revenue growth broadly matched its estimates. The shipbuilding division's inability to generate profits, resulting in an EBIT loss, was a key factor behind the deterioration in overall margins.
Antique believes the company's sizeable order book continues to offer medium-term revenue visibility. However, translating these orders into revenue and profitability remains a key near-term challenge.
"We remain constructive on the shipbuilding sector, supported by a robust naval acquisition pipeline and an expanding commercial shipbuilding opportunity. However, CSL’s valuations at 32 times/27 times FY28E/FY29E earnings remain at a premium to listed defence shipbuilding peers, limiting near-term upside," Antique said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.