Cochin Shipyard Q2 Net Profit Falls 65% QoQ

Summary of Key Information:

Reporting Period (Quarter/Year): Quarter and Half Year ended September 30, 2026

Nature of Filing / Announcement: Outcome of Board Meeting and Financial Results

Audit Opinion:

Unmodified conclusion with emphasis of matter. The auditors issued a clean opinion but highlighted several significant matters requiring attention.

Key Financial Highlights [₹ in Lakhs]:

Consolidated Results:

Quarter Ended September 30, 2026:

Revenue from Operations: ₹124,919.09 (YoY: +11.7%, QoQ: +14.1%)
Other Income: ₹8,262.08
Total Income: ₹133,181.17
Total Expenses: ₹125,671.58
Profit Before Tax: ₹7,508.00 (YoY: -49.9%, QoQ: -62.9%)
Tax Expense: ₹2,130.92
Net Profit: ₹5,377.08 (YoY: -50.0%, QoQ: -64.5%)
EPS: ₹2.04 (Basic and Diluted)

Half Year Ended September 30, 2026:

Revenue from Operations: ₹234,340.52 (YoY: +7.1%)
Other Income: ₹14,965.70
Total Income: ₹249,306.22
Net Profit: ₹20,522.44 (YoY: -30.5%)
EPS: ₹7.80 (Basic and Diluted)

Standalone Results:

Quarter Ended September 30, 2026:

Revenue from Operations: ₹107,378.86
Other Income: ₹8,352.70
Total Income: ₹115,731.56
Profit Before Tax: ₹6,400.38
Net Profit: ₹4,734.27
EPS: ₹1.80 (Basic and Diluted)

Half Year Ended September 30, 2026:

Revenue from Operations: ₹198,370.71
Other Income: ₹15,594.75
Total Income: ₹213,965.46
Net Profit: ₹18,313.84
EPS: ₹6.96 (Basic and Diluted)

Financial Position as of September 30, 2026:

Consolidated Balance Sheet:

Total Assets: ₹15,95,550.05
Property, Plant and Equipment: ₹3,12,064.43
Capital Work-in-Progress: ₹62,066.52
Inventories: ₹2,38,024.94
Cash and Cash Equivalents: ₹16,688.17
Bank Balances (other than cash): ₹1,84,651.96
Total Equity: ₹6,07,045.91
Borrowings: ₹1,78,358.48
Networth: ₹6,07,045.91

Standalone Balance Sheet:

Total Assets: ₹15,42,263.26
Property, Plant and Equipment: ₹2,88,917.82
Capital Work-in-Progress: ₹61,762.24
Inventories: ₹2,23,718.72
Cash and Cash Equivalents: ₹4,750.17
Bank Balances (other than cash): ₹1,78,045.01
Total Equity: ₹6,05,876.60
Borrowings: ₹1,65,709.54
Networth: ₹6,05,876.60

Segment-wise Performance [₹ in Lakhs]:

Consolidated Segment Revenue (Q2 FY27):

Ship Building: ₹78,314.42
Ship Repair: ₹46,604.67
Unallocated: ₹8,262.08

Consolidated Segment Result (PBIT) (Q2 FY27):

Ship Building: (₹608.19) loss
Ship Repair: ₹14,334.49 profit
Unallocated: (₹3,566.70) loss

Standalone Segment Revenue (Q2 FY27):

Ship Building: ₹60,699.76
Ship Repair: ₹46,679.10
Unallocated: ₹8,352.70

Standalone Segment Result (PBIT) (Q2 FY27):

Ship Building: (₹4,641.90) loss
Ship Repair: ₹14,408.92 profit
Unallocated: (₹934.27) loss

Corporate Actions:

Declared interim dividend of ₹3 per equity share (60% on face value of ₹5)
Record Date: Monday, November 16, 2026
Payment Date: On or before December 09, 2026

Emphasis of Matter Items:

1. Suspension of Construction of Two Passenger Vessels:

Contract value: ₹81,900 lakhs with Union Territory Administration
Vessels launched in January 2020 and August 2022
55% construction completed, ₹66,504 lakhs received
Construction suspended pending finalization of modifications and commercial terms
Bank guarantees of ₹1,12,412 lakhs pending renewal
Financial impact undeterminable due to vessel ageing and berthing costs

2. Lease Accounting by Hooghly Cochin Shipyard Limited (HCSL):

HCSL not following Ind AS 116 in accordance with Deed of Declaration
Lease term and effective dates not aligned with governing agreement

3. Provision for Interest on Delayed Payment of Lease Rent by HCSL:

HCSL paid delayed lease rent to Government of India in August 2024
Provision of ₹55 lakhs made at 10.90% p.a. interest rate
Additional ₹28 lakhs interest not considered for earlier periods

4. Construction of Caisson Gate by HCSL:

Project 98.75% complete, delivery date expired March 31, 2023
No progress during FY26 and Q2 FY27
Total expenditure: ₹1,632 lakhs, costs increasing due to delays

5. Ship Building Financial Assistance Policy (SBFAP):

HCSL recognized ₹611 lakhs income under SBFAP (PY: ₹1,237 lakhs)
Total due under scheme: ₹2,036 lakhs, realization subject to vessel delivery

6. Interest on Project Funds with IWAI:

HCSL earned ₹783 lakhs interest on temporary deployment of project funds
IWAI requested payment of interest, provision made in books

Other Significant Information:

Credit Rating: AAA maintained
Debt Equity Ratio: 0.29 (Consolidated), 0.27 (Standalone)
Current Ratio: 1.32 (Consolidated), 1.32 (Standalone)
Asset Coverage Ratio: 5.59 as on September 30, 2026
Entities included in consolidation: Two wholly-owned subsidiaries (UCSL and Hooghly-CSL) and one joint venture (Green Maritime Propulsion Pvt Ltd, 40% shareholding)