Cochin Shipyard Q2 FY27 Results Analysis: PAT Halves on Steel Costs, Ship Repair Surges 30% (COCHINSHIP)
Cochin Shipyard Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,249.19 Cr (+11.68% YoY) and PAT growth of -50.00% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 10, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,249.19 Cr (+11.68% YoY) |
| PAT (Q2) | Rs. 53.77 Cr (-50.00% YoY) |
| EBITDA margin | 10.69% (-728 bps YoY) |
| EPS (Q2) | Rs. 2.04 (-50.10% YoY) |
Quarter Snapshot
Revenue grew 11.68% YoY to Rs.1,249.19 Cr but PAT halved to Rs.53.77 Cr as steel cost inflation pushed materials to 54.66% of revenue and shipbuilding PBIT turned negative (−0.78% margin vs +19.73% a year ago). Ship Repair was the offset, growing 29.60% YoY at a 30.76% PBIT margin, while Q2 EBITDA margin of 10.69% fell below management's ~14% guidance and H1 CFO stayed negative at −Rs.635.37 Cr. The DDW/ISRF slump sale (≥Rs.1,800 Cr) and shipbuilding margin recovery are the key H2 swing factors for the ~12% revenue growth and positive FY27 cash-flow targets.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "likely in-line to modestly ahead of the guided path, hinging on deliveries and repair recovery" | Q2 +11.68% YoY (H1 +7.14%) | Played out on the quarter |
| Margins | "flat-to-compressing on input costs" | Mgmt-basis margin 10.69% vs 23.78% in Q1; shipbuilding PBIT negative — worse than "flat-to-compressing" | Played out |
| FX/other income supportive | weaker rupee "a tailwind for export realizations and FX/other income" | Other income −35.10% YoY despite an H1 FX gain of Rs.38.23 Cr | Contradicted on the YoY direction |
| Ship Repair inflection | "whether Ship Repair (FY26 −11.21%) inflects" | +29.60% YoY revenue, 30.76% margin | Played out |
| Delivery count, margin bridge, NGSV/DCI, DDW ballot | watch-list items | None addressed in the filing — remain open for the call — dividend partially delivered: Rs.3/share declared | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| ~12% annual revenue growth (12–15% potential) | Q1 FY27 earnings call, recurring guidance | Q2 +11.68% YoY; H1 +7.14% | On Track on Q2, below run-rate on H1 |
| ~14% blended EBITDA margin ("on a very conservative basis") | Q1 FY27 earnings call | Q2 10.69% mgmt-basis; H1 16.80% | Met on H1; Q2 print below |
| Positive operating cash flow in FY27 | Q1 FY27 earnings call | H1 CFO −Rs.635.37 Cr (−3.10× PAT) | Stretch |
| Interim dividend consideration | Nov 10, 2026 board-outcome filing | Rs.3.00/share declared | Met |
| DDW/ISRF JV (≥Rs.1,800 Cr slump sale) before FY27-end; NGSV (~Rs.5,000 Cr L1) and DCI dredger (~Rs.1,300 Cr) conversions due ~Nov 2026 | Q1 FY27 call and Sep/Oct 2026 filings | Filing silent on all three | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 11.68% YoY to Rs.1,249.19 Cr and 14.16% QoQ — first double-digit YoY print of FY27
- Ship Repair revenue grew 29.60% YoY to Rs.466.05 Cr with PBIT margin of 30.76% vs 18.69% a year ago
- H1 EBITDA margin on management basis was 16.80%, within the ~14% blended guidance
- Interim dividend of Rs.3.00/share declared (record date Nov 16, 2026), ~Rs.78.92 Cr
- Net worth rose 6.53% YoY to Rs.6,070.46 Cr; company retained AAA credit rating
- H1 CFO improved by Rs.137.53 Cr YoY (−Rs.635.37 Cr vs −Rs.772.90 Cr)
- H1 FX/derivative net gain of Rs.38.23 Cr vs Rs.2.10 Cr in H1 FY26
Risk Factors
- PAT fell 50.00% YoY to Rs.53.77 Cr and 64.50% QoQ; EPS fell to Rs.2.04 from Rs.4.09
- Shipbuilding segment PBIT turned negative at −Rs.6.08 Cr (−0.78% margin) vs +Rs.149.71 Cr (19.73%) a year ago; standalone shipbuilding PBIT was −Rs.46.42 Cr
- Cost of materials rose to 54.66% of revenue from 49.59% YoY on steel/HRC inflation
- Q2 EBITDA margin of 10.69% fell below management's ~14% blended guidance
- H1 CFO was −Rs.635.37 Cr (−3.10x PAT); trade receivables rose 83.29% since March
- A&N vessel contract suspended at ~55% completion with cumulative LD of Rs.215.70 Cr and Rs.1,124.12 Cr bank guarantees; financial impact undetermined by auditors
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.