1. At a Glance
If the Indian Navy had a favorite shipyard, it would probably swipe right onCochin Shipyard Ltd (CSL)— the country’s engineering marvel that builds warships by day and repairs global giants by night. Incorporated in 1972, CSL is the pride of Kochi’s waterfront and a PSU that’s aging like wine (and budget allocation). As of19th Nov 2025, the company’smarket cap stands at ₹44,653 crore, with the stock hovering at₹1,697, trading at aP/E of 58.9×— clearly, the market loves shipbuilders more than IT services right now.
In the last three months, CSL’s stock has moved like a submarine — stealthy and almost flat — up just0.15%, though itsone-year return of 25.7%would make even LIC agents nod approvingly. With anROE of 15.8%,ROCE of 20.4%, and a dividend yield of0.57%, this Navratna isn’t just floating — it’s sailing profitably.
The company reported aQ2FY26 PAT of ₹101 crore, down a sharp47.6% YoY, reminding everyone that shipbuilding isn’t exactly a fast-twitch business. Sales too fell13.3% YoY to ₹951 crore. But patience is a virtue — and as the Bhagavad Gita says,“Karmanye vadhikaraste ma phaleshu kadachana”— CSL is clearly focused on building, not worrying about quarterly stock reactions.
2. Introduction
When most of us struggle to build IKEA furniture, Cochin Shipyard is out here buildingaircraft carriers. From the mightyINS Vikrantto futuristic green vessels running on hydrogen, CSL’s engineering scale makes Elon Musk’s “Starship” look like a bath toy.
The last two years have been a rollercoaster — record order inflows, green hydrogen projects, international MoUs, and now SEBI fines worth ₹12.6 lakh each (because what’s a PSU story without a little regulatory seasoning?). Yet, the company continues to hold its course.
Cochin Shipyard’s real drama isn’t just in its dry docks — it’s in the₹21,500 crore order book,₹9,000 crore order pipeline, and multiple collaborations withglobal maritime playerslike HD KSOE and Drydocks World. These deals show that CSL is no longer just India’s ship repair shop; it’s becoming a global marine powerhouse.
But here’s the catch — shipbuilding is slow, expensive, and cyclical. You can’t sell a destroyer on Diwali discounts. The question is: can CSL keep its operational efficiency intact while balancing defence, exports, and its newfound “green” obsession? Let’s dive in (pun intended).
3. Business Model – WTF Do They Even Do?
Imagine a factory so large it can fit an aircraft carrier and still have room for your ego. That’s Cochin Shipyard. The company has three major segments:
- Shipbuilding (72% of 9M FY24 revenue)– They design and build everything from oil tankers, product carriers, bulk carriers, and passenger ferries to advanced defence ships like air defence vessels. Basically, if it floats and makes noise, CSL can build it.
- Ship Repair (28% of 9M FY24 revenue)– Since 1982, CSL has been India’s garage for maritime giants. From refitting oil rigs to fixing navy ships, they do everything except washing your car.
- Marine Engineering & Strategic Solutions– Through training and consultancy, they create future marine engineers and provide advanced naval solutions. The next generation of “ship doctors” comes from here.
The company’s new focus iszero-emission green vessels— includinghydrogen-fuel cell shipsandelectric catamaran ferries. They’re literally trying to make shipping green, which is like trying to make biryani diet-friendly — ambitious, but admirable.
4. Financials Overview
| Metric | Q2FY26 | Q2FY25 (YoY) | Q1FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 951 | 1,097 | 977 | -13.3% | -2.7% |
| EBITDA (₹ Cr) | 56 | 196 | 234 | -71.4% | -76.1% |
| PAT (₹ Cr) | 101 | 193 | 188 | -47.6% | -46.3% |
| EPS (₹) | 3.84 | 7.34 | 7.14 | -47.6% | -46.2% |
Annualised EPS:₹15.36P/E (Annualised):~110.5×
When your quarterly profit drops by half but your P/E still hits the sky, either investors are seeing the future or the market’s on too much caffeine.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s play the valuation game.
1️⃣ P/E Method:Current EPS (TTM): ₹28.8Industry P/E: 48.4×Fair Value Range = ₹28.8 × (40–50) =₹1,152 – ₹1,440
2️⃣ EV/EBITDA Method:EV = ₹43,116 CrEBITDA (TTM) = ₹1,165 Cr (approx)EV/EBITDA = 37× (from screener)If fair multiple = 25×, then EV = 25 × 1,165 = ₹29,125 Cr → Implied equity = ₹29,125 – ₹1,048 (debt) = ₹28,077 Cr → Fair Price ≈₹1,065/share
3️⃣ DCF Snapshot:Assuming 10% growth next 5 years, terminal growth 4%, discount rate 11% → Fair value ≈₹1,200–₹1,500/share
👉Educational Fair Value Range:₹1,050 – ₹1,500(This fair value range is for educational purposes only and is not investment advice.)
6. What’s Cooking – News, Triggers, Drama
If you thought shipbuilding was boring, CSL’s newsfeed looks like a Netflix maritime thriller:
- 14 Oct 2025:Signed LOI with a European client forsix LNG-fuelled feeder vessels (1,700 TEU)— estimated project size ₹3,000+ crore.
- 17 Sep 2025:Bagged ₹200 crore contract withONGCfor major lay-up repairs of a jack-up rig.
- 23 Sep 2025:MoU signed withHD KSOE (Hyundai)— a ₹3,700 crore boost with a potential greenfield project worth ₹15,000 crore.
- 12 May 2025:Partnered withDrydocks World(a DP World company) to build ship repair clusters in India — PSU collabs are the new love language.
- 28 Jun 2024:Order fromWilson ASA, Norwayfor 4 cargo vessels worth ₹1,100 crore.
- 13 May 2024:Bagged aHybrid Service Operation Vesselcontract from a European client with options for two more.
- 6 Apr 2024:Signed
