Cochin Shipyard Stock falls 3.88% after Q1 profit drops 19% check details

Cochin Shipyard shares fell as much as 3.88% to ₹1,436.95 on Monday after the state owned shipbuilder reported a weak June quarter performance. The stock came under pressure as lower profitability and contracting margins offset a modest rise in revenue.

At 10:01 am, Cochin Shipyard shares were trading 1.58% lower at ₹1,471.35, while the BSE Sensex was down 0.43% at around 77,673.

The company reported a 19.4% year on year fall in consolidated net profit for the first quarter of financial year 2027. Net profit stood at ₹151.5 crore, compared with ₹188 crore in the same quarter last year.

Cochin Shipyard Q1 results

Revenue from operations increased 2.3% year on year to ₹1,094 crore, compared with ₹1,069 crore in the year ago quarter.

Profitability was weaker. EBITDA fell 20.4% to ₹193 crore from ₹242 crore a year earlier. The EBITDA margin also fell to 17.6% from 22.7%.

Particulars	Q1 FY2027	Year ago	Change
Revenue	₹1,094 crore	₹1,069 crore	2.3%
Net profit	₹151.5 crore	₹188 crore	19.4%
EBITDA	₹193 crore	₹242 crore	20.4%
EBITDA margin	17.6%	22.7%	Lower

The results showed a sharp gap between revenue growth and profitability, with higher revenue failing to translate into higher operating profit.

What did Kotak Securities say?

Kotak Securities retained its 'Sell' rating on Cochin Shipyard and raised its target price to ₹860 from ₹830.

The brokerage said shipbuilding revenue grew 48% year on year, but this was offset by a 38% fall in ship repair revenue. It noted that the EBITDA margin of 17.3% was broadly in line with its estimate.

Kotak Securities attributed the weaker profitability to the completion of one time repair orders for INS Vikrant and INS Vikramaditya.

What investors should watch

Kotak Securities pointed to new partnerships with HD KSOE, Maersk and Drydocks World as developments to watch. The brokerage also highlighted the possible benefit from Cochin Shipyard's Vadinar ship repair expansion, supported by the ₹70,000 crore shipbuilding package.

The landing platform dock order is another opportunity for the company, particularly as uncertainty remains around the IAC 2 programme.

Cochin Shipyard operates across shipbuilding and ship repair for commercial and defence customers in India and overseas.