Cochin Shipyard Ltd. shares tumbled nearly 8% on Thursday, November 13, after the company reported disappointing September quarter (Q2) results late on Wednesday.
The state-run shipbuilder’s revenue fell 13% year-on-year to ₹951 crore, missing expectations. Brokerage firms like Kotak Securities had estimated a 10% rise in revenue for the quarter.
The company’s EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) plunged 71% to ₹56 crore, compared to ₹196 crore last year. The EBITDA margin also dropped sharply to 5.9%, from 17.87% in the same quarter last year. Kotak had projected a 12% growth in EBITDA.
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The weak performance was mainly due to a steep rise in subcontracting costs and provisions. Provisions for the quarter quadrupled to ₹21 crore year-on-year, though they declined 37% compared to the previous quarter. Subcontracting expenses also surged 50% to ₹207 crore, but were 13% lower than in the June quarter.
Despite the weak results, Cochin Shipyard announced an interim dividend of ₹4 per share (on a face value of ₹5) representing an 80% payout for FY 2025–26. The record date for the dividend is November 18, 2025, and payments will be made on or before December 11, 2025.
In early Thursday trading, Cochin Shipyard shares were down 5.5%, trading at ₹1,693.3 on the NSE.