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Cochin Shipyard Q1 profit drops 19.4% as EBITDA margin falls
The shipbuilder reported revenue from operations rising 2.4% year over year, but operating profitability weakened, with EBITDA down to about ₹193.2 crore and margins slipping to about 17.7%.
Cochin Shipyard reported a 19.4% year over year decline in consolidated net profit for the June quarter to ₹151.45 crore, down from about ₹188 crore in the same period last year, according to LiveMint Markets. The company said profitability fell mainly due to lower revenue across its shipbuilding and ship repair segments, along with a weaker segment mix.
On a quarterly basis, net profit also softened, dropping 45.2% from ₹276.48 crore in the March quarter, while revenue fell 26.3%, the outlet reported. Revenue from operations rose 2.4% year over year to ₹1,094.21 crore, compared with ₹1,068.59 crore in Q1 FY26, but the company saw margin pressure at the operating level.
EBITDA came in at about ₹193.18 crore, versus ₹240.34 crore a year earlier, and EBITDA margin moderated to about 17.7% from 22.5%. LiveMint Markets added that total expenses increased 9.1% year over year to ₹958.76 crore, with higher costs including materials consumed rising to ₹453.26 crore from ₹325.06 crore, and finance costs increasing to ₹25.36 crore from ₹12.17 crore.
Segment-wise, shipbuilding revenue increased 59.5% year over year to ₹700.04 crore and segment profit rose 75.5% to ₹63.89 crore. Ship repair revenue, by contrast, fell 37.4% year over year to ₹394.17 crore and segment profit declined 51.5% to ₹135.02 crore, the report said. Shares have traded lower after hitting a record high of ₹2,979 apiece in July 2024, and the stock was around 50% below its all-time high at the current trading level cited by LiveMint Markets.