Cochin Shipyard, the PSU shipbuilding giant, reported a strong performance for the March quarter (Q4FY25), with consolidated net profit climbing 11 per cent year-on-year to Rs 287 crore. Revenue surged 37 per cent YoY to Rs 1,758 crore, compared to Rs 1,286 crore in the same quarter last year. The robust topline growth reflects strong execution across defence and commercial shipbuilding projects.
Margin miss: EBITDA dips 7.6%, OPM slides to 15.1%
Despite stellar revenue growth, Cochin Shipyard’s operating performance saw a hit. EBITDA declined to Rs 266 crore from Rs 288 crore a year ago, leading to a sharp fall in operating margins — from 24.4 per cent to 15.1 per cent. Rising input costs, sub-contracting charges and higher overheads were key drags on profitability.
Stock on fire: 23% rally in 5 sessions
Cochin Shipyard shares have surged 23 per cent in the last five trading days, buoyed by robust earnings and positive sentiment around defence stocks. Investors continue to lap up PSU stocks, especially in the defence and marine manufacturing space, where Cochin Shipyard is a leading player with strategic visibility.
Dividend declared: Rs 2.25 per share final payout
To reward shareholders, the board has recommended a final dividend of Rs 2.25 per share (face value Rs 5) for FY25. The payout will be made within 30 days post shareholder approval in the upcoming AGM. This is in addition to the interim dividend of Rs 2 per share declared earlier.
Strong order book and growth outlook
The company remains a key beneficiary of India’s indigenous defence push. Management commentary remains optimistic, citing a healthy order book, long-term shipbuilding contracts, and opportunities in green energy vessels. As of March 2025, its joint venture investments and order pipeline continue to support a bullish growth trajectory.
Standalone performance: PAT at Rs 28,470 crore
On a standalone basis, the company reported total income of Rs 1,80,665 crore and a net profit of Rs 28,470 crore, after accounting for tax and deferred tax items. Total expenses stood at Rs 1,43,031 crore, driven primarily by raw material costs and labour charges.
Analysts bullish: Long-term play on defence infra
Brokerages remain bullish on Cochin Shipyard, citing the government’s renewed focus on indigenous naval capabilities. With orders from the Indian Navy, Coast Guard, and foreign clients, the company is well-positioned to ride the defence capex wave.
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