Shares of Cochin Shipyard Ltd have been on a roll, rising nearly 26% over five trading sessions as investor confidence builds ahead of its Q4 FY25 results.Â
The defence PSU’s share price jumped 4.4% on May 15, closing at ₹1,774.95 on the BSE, fueled by strong earnings expectations and optimism about its order book and strategic positioning.
Cochin Shipyard’s key financial highlights
Cochin Shipyard is one of India’s premier shipbuilding and repair firms, serving mainly defence contracts alongside commercial and offshore projects. It plays a critical role in India’s maritime infrastructure and defence indigenisation efforts, aligned with the Maritime India Vision 2030.
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Financial snapshot for Q4 FY25 vs Q4 FY24:
| Metric | Q4 FY25 |
| Revenue from operations | ₹1,757.65 crore (36.7% increase) |
| EBITDA | ₹266 crore (7.6% decline) |
| EBITDA margin | 15.10% (down from 22.4%) |
| Shipbuilding revenue | ₹815 crore (12% decline YoY) |
| Ship repair revenue | ₹836 crore (178% surge YoY) |
| Consolidated net profit | ₹287.18 crore (27% increase) |
| Standalone net profit | ₹285 crore (8% increase) |
| Dividend declared | ₹2.25 per share |
The company announced a final dividend of ₹2.25 per share for FY25, pending shareholder approval.
What’s driving the numbers?
Revenue growth in Q4 FY25 was powered by divergent trends, while shipbuilding revenue declined 12% to ₹815 crore, ship repair jumped 178% to ₹836 crore. The strong performance in ship repairs helped offset margin pressures.
EBITDA margins slipped to 15.10% from 22.4% a year ago due to rising costs and higher depreciation following a ₹2,800 crore capital expenditure in 2024 aimed at capacity expansion.
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How does Cochin Shipyard stack against its peers?
With an order book of ₹22,500 crore, Cochin Shipyard enjoys nearly five years of revenue visibility. However, compared to rivals like Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers, its pipeline is more muted, mainly due to the deferral of the IAC-II aircraft carrier order.
Analysts remain mixed:
- Antique Stock Broking rates it ‘Hold’ with a ₹1,481 target, citing concerns over delayed large projects.
- Among five analysts tracking the stock, three recommend ‘Buy’, while one each recommends ‘Hold’ and ‘Sell’.
- Kotak Institutional Equities and Antique emphasise the need for new defence orders to fuel medium-term growth.
Cochin Shipyard’s FY25 performance reflects solid growth, mainly from ship repair and key defence contracts. Yet, margin pressures and a comparatively modest order book suggest caution.
The fate of large projects like the IAC-II aircraft carrier remains a key driver for the company’s future growth and ability to compete with larger peers.
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Conclusion
Cochin Shipyard’s Q4 FY25 results are set to confirm steady revenue growth and a resilient defence business amid margin challenges. The recent stock rally reflects investor confidence in the company’s strategic role and upcoming projects.
However, winning large new orders like the IAC-II will be pivotal for sustained growth and market leadership.
