India’s shipbuilding and allied services sector, valued at over $1.12 billion in 2024, is poised for significant growth. Despite a global market share of less than 1% , the industry is receiving a major boost from the FY2025-26 Union Budget.
Key initiatives include a Rs. 25,000 crore (US$2.87 billion) Maritime Development Fund and a revamped financial assistance policy to elevate India’s maritime capabilities.
With a market capitalization of Rs 44,859 crore, the shares of Cochin Shipyard Ltd were trading at Rs 1,702.10 per share, decreasing around 0.31 percent as compared to the previous closing price of Rs 1,707.40 apiece.
Guidance
Cochin Shipyard Ltd targets doubling its revenue by 2030-31, with an expected 15% topline growth in FY26. Net Profit margins are projected to hold steady at 15% for the current year. However, margins in the ship repair segment may not sustain at present levels. Meanwhile, the shipbuilding segment is forecasted to deliver 10-12% margins, but its revenue contribution is expected to decrease, with shipbuilding revenue estimated at ₹1,500 crore for this fiscal.
Cochin Shipyard’s shipbuilding order pipeline stands at an impressive ₹2,85,000 crore, with defence contracts accounting for a dominant 77% share, while commercial orders contribute 23%. Key defence orders are in advanced RFI and bid stages, totaling ₹2,20,000 crore.
On the commercial side, domestic projects make up 38% and international ones 62% of ₹65,000 crore. This diversified pipeline signals strong future prospects and stability across business segments.
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The order book totals ₹21,100 crore, with 75 vessels underway. Defence projects form the largest share at ₹13,700 crore for 14 vessels, while commercial export and domestic projects add ₹4,200 crore and ₹1,700 crore, respectively. Ship repair orders contribute another ₹1,500 crore, showing healthy business diversity.
Order execution is advancing, with 25 projects in design and engineering, 37 in hull fabrication, and 13 at the advanced stage. Notably, the commercial segment features a strong green vessels presence, supporting sustainability goals and enabling clear visibility on future revenue streams.
In Q1 FY26, total income grew 31% year-on-year to ₹1,032 crore, driven mainly by a surge in ship repair revenue, which jumped 157%. Shipbuilding revenue declined 25%, reflecting a business mix shift. Consolidated income stood at ₹1,123 crore, showing solid performance despite reduced other income, and turnover increased 38%, highlighting strong operational execution.
Cochin Shipyard Limited is an India-based company that is engaged in the shipbuilding and ship repair business. The Company is engaged in the construction of vessels and repairs and refits of all types of vessels, including upgradation of ships, periodical layup repairs, and life extension of ships.
Written by Abhishek Singh
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