Cochin Shipyard Limited hosted an Investor Conference Call on Thursday, September 10, 2026, at 02:00 P.M. to discuss the company's performance and business updates. The call was hosted by Kirin Advisors Private Limited.
Management Participants
The following management representatives from Cochin Shipyard Limited participated:
- Mr. Jose V J – Chairman and Managing Director, and Director (Finance)
- Dr. Harikrishnan S – Director (Operations)
- Mr. Rajesh Gopalakrishnan – Director (Technical)
- Mr. Shiraz V P – Executive Director (Ship Building)
- Mr. Shibu John – Chief General Manager, Finance
- Mr. Syamkamal N – Company Secretary
Financial Period Discussed
The management discussed the operational and financial performance for Q1 FY27.
Operational Highlights
- CSL delivered three vessels: the third vessel in a series of eight Anti-Submarine Warfare Shallow Water Crafts for the Indian Navy, the second multipurpose vessel for a German client (export order), and a double-ended Ro-Ro ferry for Kochi Municipal Corporation.
- The wholly-owned subsidiary, Udupi Cochin Shipyard, delivered three vessels: two 3,800 TDW general cargo vessels to Wilson Group, Norway, and a 70-tonne bollard pull tug to M/s. Polestar Maritime (an Adani Group company).
Financial Highlights
- Turnover: INR 1,094.21 crores (vs. INR 1,068.59 crores YoY)
- PBT: INR 202.49 crores (vs. INR 249.54 crores YoY)
- PAT: INR 151.45 crores (vs. INR 187.82 crores YoY)
- EBITDA Margin: ~24%
- PAT Margin: ~14%
Strategic Updates and Forward-Looking Statements
Joint Venture with Drydocks World, Dubai:
- The Board approved forming a 50:50 JV with Drydocks World (a DP World company) to own, operate, and manage CSL's International Ship Repair Facility (ISRF) at Willingdon Island, Kochi.
- The ISRF is a 30-hectare facility with a 6,000-ton ship lift, six workstations, and ~1,400 meters of berthing space, capable of handling vessels up to 130 meters.
- The JV will undertake capacity augmentation by adding 10 more workstations.
- The ISRF undertaking will be transferred to the JV on a slump sale basis for a consideration of INR 1,800 crores (based on an independent valuation). CSL will receive 50% in cash and 50% as equity in the JV.
- Definitive agreements are finalized. The JV agreement will be signed on September 19, 2026. The transaction requires approvals from the Ministry of Ports, Shipping and Waterways, DIPAM, and CSL shareholders (via a postal ballot). The target implementation is before the end of FY27.
Block Fabrication Facility:
- CSL will proceed independently with the development of a Block Fabrication Facility at a smaller scale after discussions with HD KSOE of Korea did not result in a mutually agreed JV.
- The new planned capacity is 60,000 tons per annum (vs. the originally envisaged 1 lakh tons). Combined with the existing 12,000-ton capacity, the total steel throughput will be ~72,000 tons.
Vadinar Ship Repair Facility:
- A joint project with Deendayal Port Authority in Gujarat, which received CCEA approval in May 2026.
- The facility will have two floating drydocks capable of handling vessels up to 250 meters.
- Environmental clearance is expected shortly. The facility is targeted to be operational within 36 months of receiving clearance.
- CSL may explore collaboration with Drydocks World for operating this facility.
Tuticorin Hybrid Facility:
- CSL emerged as the successful bidder in an e-auction by V.O. Chidambaranar Port for a 30-year lease of 110 acres of land and 17.29 acres of waterfront.
- The one-time payment is INR 305.76 crores.
- The facility will be developed for hybrid shipbuilding and ship repair, including European short sea vessels and wind energy vessels. It will also provide additional capacity for the land-constrained Udupi Cochin Shipyard subsidiary.
Funding for Projects:
- Projects will be funded through a combination of debt and equity (target debt-equity ratio of 80:20).
- CSL has applied for financial support under the Government of India's Shipbuilding Development Scheme (25% capex subsidy) and plans to utilize the Maritime Development Fund's Interest Incentivisation Fund (3% interest subvention).
Order Book:
- The current unexecuted order book stands at ~INR 22,000 crores.
- CSL is L1 for a contract to build five Next-Generation Survey Vessels for the Indian Navy, valued at ~INR 5,000 crores. Once concluded, the order book will be ~INR 27,000 crores.
Q&A Session Highlights (Key Topics)
- Green Maritime Propulsion JV (with HBL): Focus on marinizing energy storage systems for the marine sector. Targeting revenue of INR 640 crores by the 5th year (2031) with an expected EBITDA margin of ~20%. Capital deployed is INR 50 crores (CSL holds a 40% stake).
- Drydocks World JV Operations: Clarified that the JV will handle execution, with CSL continuing to secure orders for its captive market (defense/government vessels). DDW will bring global clients, adding to capacity.
- Order Pipeline: Defense pipeline includes LPD (4 ships, ~INR 32,000 cr), MCMV (12 ships, ~INR 36,000 cr), and P-17 Bravo (7 ships, ~INR 49,000 cr). Commercial pipeline includes a repeat dredger for DCI (~INR 1,300 cr) and 4 passenger vessels for Andaman.
- Cash Flow: Negative operating cash flow in FY26 was attributed to tail-ended payment terms for export orders. Cash flow is expected to turn positive in FY27 upon the delivery of ~10 vessels.
- Margins: Blended EBITDA margin guidance of 14-15% (Shipbuilding: 10-12%; Ship Repair: 22-24%). The reduction from historical highs is due to the absence of high-margin nominated orders (e.g., aircraft carrier) and a decrease in interest income from cash reserves.
- Capex Revenue Potential: ISRF targeted to scale to INR 1,000-1,200 cr in 5 years; Vadinar targeted at INR 300-600 cr after 3 years; Tuticorin targeted to scale to INR 1,800-2,000 cr in 7-8 years.
Additional Notes Section
- The document is a regulatory filing containing the transcript of the investor conference call.
- The transcript was attached to the disclosure sent to the stock exchanges.
- The summary is based strictly on the facts and figures disclosed in the provided transcript.