Cochin Shipyard shares crash 8%: Defence PSU stock Q2 profit drops 50% but declares ₹3 dividend- Still a stock to buy?

Résumé détaillé

Cochin Shipyard shares fell 8% after Q2 FY27 net profit nearly halved to ₹53.77 crore, despite revenue rising 11.7%. Higher expenses and a loss in shipbuilding weighed on results. The company announced a ₹3 interim dividend.

Cochin Shipyard share price: Cochin Shipyard shares came under heavy selling pressure on Wednesday, November 11, after the defence PSU reported a sharp decline in its September quarter earnings. Despite an 11.7% increase in revenue, the company's consolidated net profit nearly halved year-on-year, with higher expenses and losses in its shipbuilding business weighing on performance.

The stock tumbled 8% to an intra-day low of ₹1,186.75. This marked a steep retreat from its 52-week high of ₹1,843.60, recorded in May 2026, although it remained above its 52-week low of ₹1,101.25 touched in October 2026.

The recent correction has been substantial, with the stock losing 2% over one month, 19% over three months, 29% over six months and 31% over one year. However, its long-term performance remains strong, with Cochin Shipyard delivering multibagger returns of 545% over five years.

The September quarter exposed a sharp divergence between Cochin Shipyard's revenue growth and profitability. The Miniratna PSU reported consolidated net profit of ₹53.77 crore in Q2 FY27, down nearly 50% from ₹107.53 crore in the corresponding quarter of the previous financial year.

Revenue from operations, however, grew 11.7% year-on-year to ₹1,249.19 crore during July-September 2026, compared with ₹1,118.59 crore in Q2 FY26. Total income increased 6.9% to ₹1,331.81 crore from ₹1,245.88 crore in the year-ago quarter.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 30.7% year-on-year to ₹51 crore from ₹73.6 crore a year ago. EBITDA margin also contracted to 4.1% in the September quarter from 6.6% in the year-ago period.

The pressure on profitability was also reflected in the company's expenses, which climbed faster than revenue. Total expenses rose 14.7% year-on-year to ₹1,256.72 crore in Q2 FY27, against ₹1,095.97 crore in Q2 FY26.

A closer look at the segment performance showed that shipbuilding remained the biggest drag.

The ship repair business, in contrast, delivered…

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