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IAC-2 aircraft carrier order delay
View Risks →Cochin Shipyard Limited — Q1 FY26
Cochin Shipyard reported a strong Q1 FY26 with revenue of INR 1,068.59 crore (+38.5% YoY) and PAT of INR 187.82 crore (+7.8% YoY), driven by robust execution in shipbuilding and repair.
bullish
high
Financial stats pending filing verification
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Cochin Shipyard reported a strong Q1 FY26 with revenue of INR 1,068.59 crore (+38.5% YoY) and PAT of INR 187.82 crore (+7.8% YoY), driven by robust execution in shipbuilding and repair. EBITDA margin stood at 28%, though management guided full-year margins lower to ~20% due to a normalizing ship repair mix after last year's aircraft carrier work. The order book remains healthy at ~INR 21,000 crore (75 vessels), with new MoUs with HD KSOE and Drydocks World expected to drive long-term growth. Revenue guidance for FY26 is 14-15% growth, with PAT margin around 15%. Key risk: delays in defense order conversions (e.g., IAC-2) could impact future pipeline visibility.
कोचीन शिपयार्ड ने वित्त वर्ष 2025-26 की पहली तिमाही में शानदार प्रदर्शन किया। कंपनी की कमाई 1,068.59 करोड़ रुपये रही, जो पिछले साल की समान तिमाही से 38.5% अधिक है। मुनाफा 187.82 करोड़ रुपये रहा, जो 7.8% की बढ़त दर्शाता है। यह वृद्धि जहाज निर्माण और मरम्मत के बेहतर काम के कारण हुई। कंपनी का परिचालन मुनाफा (EBITDA) 28% रहा, लेकिन प्रबंधन ने पूरे साल के लिए इसे घटकर लगभग 20% रहने का अनुमान जताया है। इसकी वजह यह है कि पिछले साल विमानवाहक पोत की मरम्मत के बाद अब सामान्य जहाजों की मरम्मत का मिश्रण बदल रहा है। कंपनी के पास 21,000 करोड़ रुपये के ऑर्डर (75 जहाज) हैं। नई साझेदारियों से लंबी अवधि में वृद्धि की उम्मीद है। वित्त वर्ष 2026 में कमाई 14-15% बढ़ने और मुनाफा 15% रहने का अनुमान है। मुख्य जोखिम: रक्षा ऑर्डर मिलने में देरी से भविष्य के काम पर असर पड़ सकता है।
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Order Book
INR 21,000 crore
N/A
Includes shipbuilding (~INR 19,500 crore) and ship repair (~INR 1,500 crore) across 75 vessels.
Ship Repair Revenue Guidance FY26
INR 1,500 crore
-20% YoY
Management guided ship repair revenue of ~INR 1,500 crore for FY26, down from INR 1,875 crore last year due to absence of aircraft carrier repair.
ISRF Capacity Utilization
14 vessels
N/A
14 vessels currently under repair at the new International Ship Repair Facility, which has a full capacity of 82 ships per year.
Defense Order Pipeline
INR 2.2 trillion
N/A
Includes INR 1.29 trillion at RFI stage and INR 65,000 crore commercial; bids submitted for two ~INR 10,000 crore projects.
What Changed vs Last Quarter
NEW
PAT margin of ~15% for FY26
Management guided PAT margin around 15% for the full year.
NEW
Ship repair revenue of ~INR 1,500 crore in FY26
Ship repair revenue expected to be around INR 1,500 crore for FY26.
NEW
ISRF to generate INR 250 crore extra revenue in 18-24 months
The new International Ship Repair Facility is expected to generate about INR 250 crore of additional revenue in the initial 18-24 months, scaling to INR 600+ crore at full capacity.
UPDATED
Revenue growth of 14-15% for FY26
Management guided top-line growth of 14-15% for the current financial year.
DROPPED
EBITDA margin guidance of 17-19%
Blended EBITDA margin expected to be in the 17-19% range, with ship repair margins around 22-23%.
DROPPED
Additional depreciation of INR 125-150 crore from new facilities
Depreciation from ISRF and new dry dock (total CapEx ~INR 2,800 crore) will be around INR 125-150 crore annually.
DROPPED
Global operating partner for ISRF to be appointed
A global tender for an operating partner for the International Ship Repair Facility will be issued shortly.
NEW RISK
IAC-2 aircraft carrier order delay
Management reported no fresh developments on the IAC-2 order, with no timeline visibility, which could impact future defense revenue.
NEW RISK
Dredger delivery challenges
Management acknowledged challenges in delivery timelines for the dredger being built for Dredging Corporation of India, with launch expected in one month and delivery still several months away.
NEW RISK
Margin compression from normalizing ship repair mix
EBITDA margin is expected to decline to ~20% for FY26 from 28% in Q1, as ship repair margins normalize after last year's high-margin aircraft carrier work.
NEW RISK
U.S. Navy ship repair engagement uncertainty
Despite having a Master Ship Repair Agreement, no ship repair contracts have been concluded with the U.S. Navy, and management declined to provide a timeline.
RISK GONE
IAC-2 order uncertainty
The next indigenous aircraft carrier order is not yet confirmed; management declined to comment on timelines, citing it as a prerogative of the Navy.
RISK GONE
Margin compression from higher depreciation
New facilities will add INR 125-150 crore depreciation, pressuring net margins despite revenue growth.
RISK GONE
Execution risk in new capacities
The new dry dock and ISRF are expected to be fully operational by August 2024; any delays could impact revenue guidance.
RISK GONE
Dependence on defense orders
~68% of order book is defense-related; any slowdown in defense procurement could impact future revenue visibility.
Fast read
Guidance and risk preview
Management guided top-line growth of 14-15% for the current financial year.
Management reported no fresh developments on the IAC-2 order, with no timeline visibility, which could impact future defense revenue.
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