Cochin Shipyard Limited has been declared the lowest bidder for a substantial ₹5,000 crore contract for the construction of five Next Generation Survey Vessels (NGSVs) for the Indian Navy, according to a recent Ministry of Defence announcement. This status as the L1 bidder was confirmed during a meeting in New Delhi; however, the contract’s finalization is subject to completing all necessary formalities.
The shipyard also emphasized that there are no related party transactions linked to this contract, asserting that its promoter group has no interests in the awarding entity. This transparency is critical as the company navigates its ongoing projects and potential contracts.
In its third-quarter financial results for FY26, Cochin Shipyard reported a year-on-year net profit decline of 18.3%, amounting to ₹145 crore, down from ₹177 crore in the same quarter last year. Interestingly, revenue from operations increased by 17.7%, rising to ₹1,350 crore. Despite this revenue growth, EBITDA fell significantly by 21.4%, resulting in a tighter operating margin, which decreased from 20.7% to 13.8%.
Additionally, the shipbuilder announced an interim dividend of ₹3.5 per share amid these varying financial indicators. On the National Stock Exchange (NSE), shares closed at ₹1,469.40, reflecting a slight dip of 0.23%. While Cochin’s stock has appreciated nearly 18% over the past year, it has dropped around 9% since January, contrasting with the broader market, where Nifty saw a gain of 0.83%.
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