Cochin Shipyard Limited (CSL), a prominent player in the Indian shipbuilding and repair industry, has unveiled an optimistic financial outlook for the fiscal year 2026 (FY26), signaling strong growth prospects and operational efficiency.

Financial Projections

The company has set forth ambitious targets for FY26:

• Revenue Growth: CSL anticipates a substantial increase in revenue, projecting a growth of 14-15%.
• Profit After Tax (PAT) Margins: The company expects to maintain robust profitability with PAT margins around 15%.
• Ship Repair Revenue: A significant contribution to the overall revenue is expected from the ship repair segment, with an estimated ₹1,500.00 crores for FY26.
• Shipbuilding Margins: The core shipbuilding business is projected to deliver margins between 10-12%.
• EBITDA Guidance: Overall EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is forecasted at approximately 20%.

Long-Term Growth Strategy

Looking beyond FY26, Cochin Shipyard has outlined a compelling long-term growth trajectory:

• The company has set a revenue growth guidance of 10-12% over the next 5-10 years, indicating sustained expansion plans and market confidence.

Recent Financial Performance

The company's Q1 FY26 results, as presented in their recent investor presentation, showcase a strong start to the fiscal year:

Order Book and Future Prospects

Cochin Shipyard's robust order book position stands at approximately ₹21,100.00 crores, providing clear revenue visibility:

• Defence Orders: ₹13,700.00 crores (65% of total order book)
• Commercial - Domestic: ₹1,700.00 crores (8%)
• Commercial - Export: ₹4,200.00 crores (20%)
• Ship Repair Orders: ₹1,500.00 crores (7%)

The company's focus on green vessels is evident, with 39% of its commercial segment order book dedicated to eco-friendly ships.

Strategic Partnerships

CSL has recently signed significant Memorandums of Understanding (MoUs):

1. With Drydocks World, UAE: To explore joint development of world-class ship repair clusters at Kochi and Vadinar.
2. With HD KSOE, South Korea: For joint exploration of new building opportunities, sharing technical expertise, and enhancing productivity.

These partnerships are expected to bolster CSL's capabilities and global reach in the shipbuilding and repair sectors.

Cochin Shipyard's ambitious projections and strategic initiatives underscore its commitment to growth and innovation in the maritime industry. As the company continues to expand its order book and enhance its operational efficiency, it appears well-positioned to navigate the challenges and opportunities in the evolving global shipbuilding market.

Cochin Shipyard Limited (CSL) has delivered a strong performance in the first quarter, demonstrating significant growth and a healthy order book. The company's financial results and strategic developments paint a picture of resilience and expansion in both domestic and international markets.

Financial Highlights

Cochin Shipyard reported impressive financial results for Q1:

• Consolidated revenue increased by 38% year-on-year to Rs 1,068.59 crores
• Profit after tax (PAT) grew by 4% to Rs 187.83 crores
• Earnings per share (EPS) stood at Rs 7.14, up 4% from the previous year
• EBITDA margin was 28%, compared to 37% in the same quarter last year

Segment Performance

The company's performance was marked by contrasting results in its two main segments:

• Ship repair segment: Witnessed extraordinary growth of 157%, reaching Rs 629.62 crores
• Shipbuilding segment: Experienced a slight decline of 5.6%, with revenue of Rs 438.97 crores

Order Book and Pipeline

Cochin Shipyard maintains a strong position in the market with a substantial order book:

• Total order book stands at Rs 19,600 crores, covering 75 vessels
• Defence orders account for Rs 13,700 crores (70% of the order book)
• Commercial orders amount to Rs 5,900 crores (30% of the order book)

The company also boasts an impressive order pipeline of Rs 2,85,000 crores, with 77% from defence and 23% from commercial segments.

Strategic Developments

During the quarter, CSL made significant strides in expanding its business and capabilities:

New Orders

• Secured contracts for power tugs from Polestar Maritime Limited
• Received an order for a luxury river cruise vessel from Heritage River Journeys Private Limited

Deliveries

• Delivered the 19th electric hybrid water metro boat to Kochi Metro

Strategic Partnerships

• Signed a Memorandum of Understanding (MoU) with HD KSOE of South Korea to explore new shipbuilding opportunities and share technical expertise
• Entered into a strategic partnership with Drydocks World of UAE to explore joint development of world-class ship repair clusters in Kochi and Vadinar

Infrastructure Enhancement

Cochin Shipyard has significantly upgraded its facilities:

• New ship repair infrastructure capable of handling vessels up to 130 meters in length
• Increased capacity to repair 82 ships annually
• Completed capex projects including a new dry dock for building and repairing large vessels, including Suezmax/Capesize ships and aircraft carriers

Outlook

With its strong financial performance, robust order book, and strategic partnerships, Cochin Shipyard appears well-positioned for continued growth. The company's focus on both defence and commercial segments, along with its infrastructure investments, suggests a balanced approach to capitalizing on opportunities in the shipbuilding and repair markets.