Cochin Shipyard's Q2 profit halves despite higher revenue

Cochin Shipyard Limited (NSE: COCHINSHIP) reported Q2 FY27 consolidated revenue of ₹1,249 crore, up 11.7% year on year. Profit after tax declined 50% to ₹53.8 crore, highlighting a sharp deterioration in quarterly profitability. What happened The shipbuilding segment generated revenue of ₹783 crore, up 3.2%. Ship repair revenue increased 29.6% to ₹466 crore. Despite higher revenue, profit before tax fell approximately 50%, while EBITDA declined 30.7%. EBITDA margin contracted to around 4.1% from 6.6% in the year-ago quarter. The company also declared an interim dividend of ₹3 per share, with 16 November 2026 set as the record date. Why it matters The contrasting performance of shipbuilding and ship repair is important. Ship repair is growing faster and provides a useful additional revenue stream, but it has not been enough to offset the pressure on overall profitability. There are also project-level execution risks. The company's interim financial disclosures highlight two suspended passenger-vessel contracts, with unresolved delivery and bank-guarantee matters. These issues deserve attention because delays and cost uncertainties can affect cash flows and project economics. What to watch next Monitor EBITDA margin recovery, shipbuilding order execution and progress on the suspended passenger-vessel contracts. The interim dividend record date is 16 November, but the more important medium-term trigger is improvement in operating profitability. Stance: Cautious despite the revenue growth and dividend. The business has a strong position in shipbuilding and repair, but margin recovery and resolution of project-related uncertainties are necessary to improve the earnings outlook.