Cochin Shipyard submitted its Business Responsibility and Sustainability Report (BRSR) for FY26, detailing progress on green shipping initiatives and renewable energy infrastructure. The report underscores a strategic pivot toward low-emission vessels and operational decarbonization.

Green Shipping Initiatives

The company delivered India's first indigenously built Hydrogen Fuel Cell Catamaran Vessel to the Inland Waterways Authority of India. It also handed over two Autonomous Electric Vessels to ASKO Maritime AS in Norway. These vessels are powered by 1,846 kWh capacity batteries.

Further deliveries include 20 out of 23 Hybrid Electric Catamaran Hull Vessels for the Kochi Water Metro Project and three Hybrid Electric Catamaran Passenger Vessels for the Inland Waterways Authority of India. The company is currently constructing vessels for European clients, including Zero Emission Feeder Container Vessels and 70T Bollard Pull Electric TRAnverse Tugs.

Renewable Energy Transition

Cochin Shipyard plans to expand its rooftop solar installation capacity to 4,000 kWp by December 2028, up from the current installed capacity of 2,422 kWp. To enhance green power utilization, the company is implementing a Battery Energy Storage System (BESS) in phases. The first phase is targeted for completion by December 2027.

Upon commissioning, the BESS project is expected to help the company meet approximately 60-70% of its energy requirements through green sources. This replaces an earlier plan for a 14 MW wind-solar hybrid plant, which was shelved due to high costs, land constraints, and lower-than-required wind speeds affecting the Capacity Utilization Factor.

Environmental Metrics

Total energy consumption fell to 172,383.87 GJ in FY26 from 180,403.16 GJ in FY25. Renewable energy consumption rose significantly to 44,765.63 GJ, compared to 23,078.04 GJ in the previous year. Conversely, non-renewable energy consumption dropped to 127,618.24 GJ from 157,325.12 GJ.

Greenhouse gas emissions showed a mixed trend. Scope 1 emissions increased to 3,998.03 metric tonnes of CO2 equivalent from 2,687.63 metric tonnes. However, Scope 2 emissions declined to 21,252.00 metric tonnes from 28,736.33 metric tonnes. Total waste generated rose to 18,846.73 metric tonnes from 12,805.64 metric tonnes, with 6,373.66 metric tonnes recycled.

Governance and Safety

The company reported one fatality among workers in FY26, compared to none in FY25. The Lost Time Injury Frequency Rate for workers stood at 8.92 per million person-hours worked, up from 5.49 in FY25. Employee turnover rates remained stable at 3.89% for permanent employees.

Cochin Shipyard received penalties of ₹32,20,220 each from BSE and NSE for non-compliance with board composition regulations. The company noted that these non-compliances were due to delays in government appointments of independent directors and has sought waivers.

Cochin Shipyard has been fined ₹9,66,420 each by the Bombay Stock Exchange and the National Stock Exchange for regulatory non-compliance related to its board composition.

The penalties were imposed for the quarter ended June 30, 2026, following violations of Regulation 17(1) of the SEBI LODR Regulations regarding the absence of sufficient independent directors. The company also failed to comply with Regulations 18 and 19 concerning the constitution of the audit committee and the nomination and remuneration committee.

Penalty Details

The stock exchanges issued the fines pursuant to Chapter VII: Penal Actions for Non-Compliance of SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The total monetary impact amounts to ₹19,32,840, inclusive of GST at 18%.

The company received the notices via email after office hours on August 25, 2026. Due to Onam being a holiday on August 26, 2026, management became aware of the imposition only on August 27, 2026.

Regulatory Context

As a Central Public Sector Enterprise under the Ministry of Ports, Shipping and Waterways, the power to appoint directors rests with the Government of India. The company stated that the non-compliance was not due to negligence or default by management but rather a delay in government appointments.

Following sustained requests, the Ministry appointed Dr. Vani Ahluwalia as a Non-official (Independent) Director via letter dated August 17, 2026. This appointment allowed the company to duly constitute the audit and nomination committees in line with SEBI regulations.

What the Numbers Show

The financial impact is limited strictly to the penalty amount. The company explicitly stated that there is no other quantifiable impact on operations or activities beyond the fines. Management intends to file waiver requests with both exchanges under the extant Policy for Exemption of Fines, citing that the violations were outside the control of the company's management.