Cochin Shipyard Shares Fall 8% After 43% Decline in Q2FY26 Profits

On Thursday, the Cochin Shipyard share price fell by 8.1%, touching a day’s low price of Rs 1,645.30 on NSE after the Cochin Shipyard reported a challenging set of financial results for Q2FY26, reflecting margin pressure and higher operating costs even as the company continued its core focus on shipbuilding and repair for the Indian Navy and other clients.

Q2FY26 Financial Performance

Cochin Shipyard’s consolidated net profit for the Q2FY26 quarter recorded a sharp decline of 43% year-on-year to Rs 107.52 crore, slipping from Rs 188.92 crore reported in the same period last year. Operational revenue saw a marginal 2.15% decrease to Rs 1,118.58 crore.

 EBITDA experienced a substantial contraction, dropping 62.66% year-on-year to Rs 73.66 crore compared to Rs 197.26 crore in Q2FY25, with operating margins shrinking sharply from 17.26% to just 6.6%. This margin erosion was driven by both elevated expenses and underperformance in the company’s main shipbuilding vertical.

Segment-wise, revenue from shipbuilding declined by 12%, largely due to a less favourable project mix and execution delays. In contrast, the ship repair division delivered robust performance, posting a 27% increase in revenues, which partially offset the pressures in shipbuilding. The company’s weaker operational leverage rose from rising input costs, as well as provisioning and depreciation impacts.

Dividend Declaration

Despite subdued quarterly performance, Cochin Shipyard’s board approved an interim dividend of Rs 4 per equity share for FY26. The record date for this payout is November 18, with disbursement scheduled on or before December 11, 2025. This dividend continues the company’s track record of rewarding shareholders, complemented by its recent history of regular interim and final dividends. In the past 12 months alone, the company distributed a total of Rs 9.75 in dividends per share.

Market Reaction

Cochin Shipyard’s shares reacted negatively by falling up to 8% on NSE on Thursday. Over the last six months, the company’s stock has appreciated by 9.69%, and it has delivered around 31% gains in the past year. On a YTD (Year to Date) basis, the shares have delivered around 10.33%, respectively.

Government Support

The Indian government announced a Rs 69,725 crore shipbuilding programme to boost the maritime sector and improve domestic companies’ global competitiveness. Cochin Shipyard, among other domestic players, is expected to benefit from this initiative, which aims to modernise infrastructure, expand capacity, and strengthen India’s position as a leading shipbuilding and repair hub.

Cochin Shipyard’s Q2FY26 results highlighted a notable squeeze on profitability and margins amid higher costs and softer shipbuilding activity, even as ship repair provided some offsetting strength. The interim dividend declaration remains positive for shareholders. The government's push towards developing the shipbuilding industry is a sign of opportunities in the coming days.