Cochin Shipyard Q1 FY27 Results (NSE: COCHINSHIP)
Signal: Growth reaccelerated
The read
The quarter marks a weak operating inflection after Q4FY26’s 21% operating margin: consolidated revenue grew only 2.4% YoY, EBITDA fell 12.0% and PAT fell 19.4%, while gross margin compressed 1701bps as raw materials rose to 41.4% of revenue; the key thesis risk is whether shipbuilding profitability recovers, since ship repair’s ₹13501.66 lakh segment result is currently carrying the group.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,094.21 Cr | 2.4% | -26.3% |
| EBIT | ₹227.84 Cr | -12.9% | |
| Net profit | ₹151.45 Cr | -19.4% | |
| EPS | ₹5.76 | -19.3% | |
| EBIT margin | 24% |
P&L walk
Revenue increased 2.4% YoY to ₹109421.43 lakh, but gross margin fell to 37.8% from 54.8% as raw materials rose to 41.4% of revenue from 30.4%; EBITDA declined 12.0% to ₹260.22 lakh, EBIT declined 12.9% to ₹227.84 lakh and PAT declined 19.4% to ₹15145.36 lakh, with other income contributing 33.1% of PBT.
Segments
Ship repair was the group’s earnings driver, with segment result of ₹13501.66 lakh despite revenue falling 37.4% YoY, while shipbuilding result fell 55.4% YoY to ₹6388.80 lakh even as revenue rose 59.5%; subsidiaries materially cushioned standalone PAT of ₹13579.57 lakh to consolidated PAT of ₹15145.36 lakh.
Key positives
- Ship-repair segment result was ₹13501.66 lakh, up 323.0% QoQ, cushioning the group despite a 37.4% YoY revenue decline.
- Consolidated shipbuilding revenue rose 59.5% YoY to ₹70004.27 lakh, indicating higher execution, although the segment result declined 55.4% to ₹6388.80 lakh.
- Consolidated EPS declined 19.3% YoY to ₹5.76, broadly tracking the 19.4% PAT decline and showing no earnings-per-share dilution signal.
Key concerns
- Consolidated gross margin fell 1701bps YoY to 37.8% as raw-material cost rose to 41.4% of revenue from 30.4%; revenue grew 2.4%, implying costs were largely absorbed rather than fully passed through.
- Shipbuilding segment result fell 55.4% YoY to ₹6388.80 lakh despite 59.5% revenue growth, signalling a material execution or contract-margin issue.
- Finance costs rose 108.4% YoY to ₹2535.82 lakh and interest-service coverage fell to 8.99x from 21.51x.
- Standalone revenue fell 6.9% YoY and standalone PAT fell 27.7% YoY, showing that group-level performance was partly supported by subsidiaries.
Earnings quality: includes non-operating other income
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