Summary of earnings call for Cochin Shipyard Ltd published on 26 Aug, 2025

Cochin Shipyard Limited
Q1 FY26
Call date · August 19, 2025

Secured new orders for two 70-ton bollard pull tugs (Polestar Maritime) and a luxury river cruise vessel (Heritage River Cruise Journeys).
Delivered the 19th Electric Hybrid Water Metro Boat to Kochi Metro; Udupi-CSL delivered its first dry cargo vessel to a European client.
Signed MoUs with Drydocks World UAE (ship repair clusters) and HD KSOE, South Korea (shipbuilding collaboration).
Both major capital projects—the new Dry Dock and International Ship Repair Facility (ISRF)—are completed and operational.
Q1 turnover rose to Rs.1,068.59 crores (vs. Rs.771.47 crores YoY); PAT at Rs.187.82 crores (vs. Rs.174.23 crores YoY); EBITDA margin at 28%, PAT margin at 18%.
Robust order book of ~Rs.21,100 crores (shipbuilding: Rs.19,600 crores; ship repair: Rs.1,500 crores).

No fresh developments on IAC-2; timelines remain uncertain.
Ship repair margins expected to decline in FY26 due to absence of large aircraft carrier projects.
Challenges in delivery timelines for the Dredging Corporation of India dredger project.

Capex: Further investments likely for new fabrication/workstation facilities (HD KSOE JV); no immediate capex for Drydocks World JV unless business expands.
New products/segments: Focus on merchant shipbuilding (with HD KSOE), specialist vessel exports to Europe, and leveraging ISRF for ship repair.
Expected client wins/losses: Targeting Maersk for ship repair in FY26; ongoing discussions with US Navy (MSRA) but no concluded engagements yet.
Revenue/margin outlook: FY26 topline growth guided at 14–15%; PAT margin at ~15%; shipbuilding margin at 10–12%; ship repair revenue expected at ~Rs.1,500 crores.
Strategic initiatives: Continued focus on technology adoption (digital tools, modular construction), workforce skilling, and leveraging government’s Maritime Development Fund as opportunities arise.

Q 1 (Composite): What is the roadmap for digital/smart shipyard initiatives and global competitiveness?
A (Management):

Will invest in modern systems and digital tools, especially in engineering and production.
No immediate plans for a fully smart shipyard; selective adoption of technology as required.

Q 2 (Composite): Details and revenue potential of MoUs with HD KSOE, Drydocks World, and Maersk; timelines for fruition.
A (Management):

HD KSOE: Focus on merchant shipbuilding, leveraging new dry dock, skill and engineering cooperation; 3–5 year horizon for material impact.
Drydocks World: Ship repair focus, leveraging ISRF; initial impact in 1.5–2 years.
Maersk: Targeting first ship repair in FY26; no financial figures disclosed.

Q 3 (Composite): Order pipeline and status of major defense/commercial projects (including IAC-2).
A (Management):

Strong defense and commercial order pipeline; several projects at bid/RFI stage.
No new developments on IAC-2; timelines uncertain.

Q 4 (Composite): Margin outlook for shipbuilding and ship repair; impact of product mix.
A (Management):

Ship repair margins to decline in FY26 (no large carrier projects); revenue ~Rs.1,500 crores.
Shipbuilding margin at 10–12%; overall PAT margin guided at ~15%.
FY26 EBITDA margin guided at ~20% (vs. 28% in Q1, higher in FY25 due to one-offs).

Q 5 (Composite): Capex requirements for JVs, new facilities, and doubling revenue by 2030–31.
A (Management):

Further capex for HD KSOE JV likely; ISRF and dry dock capex cycle (~Rs.3,250 crores) largely complete.
Doubling revenue by 2030–31 may not require significant new capex; future investments to support growth beyond that.

Q 6 (Composite): Utilization of new facilities (ISRF, dry dock) and revenue potential.
A (Management):

ISRF: 14 vessels under repair; capacity for 82 ships/year; revenue potential Rs.250 crores (18–24 months), Rs.600+ crores at full scale.
New dry dock: 3 vessels under construction, 1 dredger for repair; currently fully utilized.

Q 7 (Composite): Export strategy, recurring revenue streams, and government policy impact.
A (Management):

Exports are a key long-term focus, especially specialist vessels for Europe and merchant vessels with partners.
Ship repair provides recurring revenue; shipbuilding is EPC/project-based.
Government’s cluster policy and Maritime Development Fund expected to support industry growth.

Q 8 (Composite): Defense order book and pipeline details; major projects in bid/RFI stage.
A (Management):

Defense order book: Rs.13,700 crores (ASW Corvette: Rs.3,700 crores; Next Gen Missile Vessels: balance).
Pipeline: Two projects worth Rs.10,000 crores (Next Gen Fast Patrol Vessels for Coast Guard, Next Gen Survey Vessels for Navy); large RFI projects include MCMV, P-17 Bravo, LPD.

Q1 FY26 turnover: Rs.1,068.59 crores
Q1 FY25 turnover: Rs.771.47 crores
Q1 FY26 profit before tax: Rs.249.54 crores
Q1 FY25 profit before tax: Rs.235.82 crores
Q1 FY26 profit after tax: Rs.187.82 crores
Q1 FY25 profit after tax: Rs.174.23 crores
Q1 FY26 EBITDA margin: 28%
Q1 FY26 PAT margin: 18%
Order book: ~Rs.21,100 crores (shipbuilding: Rs.19,600 crores; ship repair: Rs.1,500 crores)
Number of vessels under contract: 75 (25 in design/construction, 37 in fabrication/assembly, 13 launched)
ISRF capacity: 82 ships/year; currently 14 vessels under repair
Ship repair revenue guidance FY26: ~Rs.1,500 crores
Topline growth guidance FY26: 14–15%
PAT margin guidance FY26: ~15%
Shipbuilding margin: 10–12%
Recent capex cycle: ~Rs.3,250 crores (over 7 years)
Defense order book: Rs.13,700 crores (ASW Corvette: Rs.3,700 crores; Next Gen Missile Vessels: balance)
Defense order pipeline: Rs.2,20,000 crores (bid/RFP/RFI stages)
Commercial order pipeline: Rs.65,000 crores
ISRF revenue potential: Rs.250 crores (18–24 months), Rs.600+ crores (full scale)
Number of vessels at ISRF: 14
Number of vessels under construction (group): 50 (37 fabrication/assembly + 13 launched)
Dredger for Dredging Corporation of India: To be launched in next 1 month
No financial figures disclosed for Maersk or US Navy ship repair engagements (Not disclosed)