Cochin Shipyard Q4 Results 2024-25: Profit and Revenue Soar, Dividend Declared
Cochin Shipyard Ltd., a leading state-run shipbuilder in India, has reported impressive financial results for the fourth quarter of the financial year 2024-25. The company’s shares surged by over 5% on May 15, 2025, continuing a five-day gaining streak, driven by strong earnings and a positive market response.
Key Financial Highlights
The company showcased robust growth in its Q4 performance:
- Net Profit: Rose by 10.8% to ₹287 crore, compared to the previous year.
- Revenue: Jumped by 37% to ₹1,758 crore, reflecting strong operational efficiency.
- EBITDA: Declined by 7.6% to ₹266 crore, with margins narrowing to 15.10% from 22.40% last year, a drop of 730 basis points.
Despite the dip in margins, the revenue and profit growth underscore Cochin Shipyard’s ability to capitalise on its order pipeline and operational strengths.
Dividend Announcement
The board has recommended a final dividend of ₹2.25 per equity share (face value ₹5) for FY 2024-25. This proposal awaits shareholder approval at the upcoming Annual General Meeting (AGM). Once approved, the dividend will be paid within 30 days of the AGM, rewarding investors for their trust in the company.
Stock Performance and Market Outlook
On May 15, 2025, Cochin Shipyard’s shares climbed 5.23% to ₹1,788.30, with a remarkable 26% gain over the past five trading sessions. The stock’s upward momentum reflects investor confidence in the company’s growth trajectory.
Antique Stock Broking, in its analysis, highlighted that Cochin Shipyard’s revenue growth is expected to remain strong, driven by short-cycle orders. The brokerage targets sustained EBITDA margins of 20%–22% in the medium term. However, higher depreciation from a recently completed ₹2,800 crore capex programme may temper earnings growth in FY26.
Order Book Strength: Cochin Shipyard’s current order book stands at ₹22,500 crore, providing revenue visibility for nearly five years.
Challenges and Comparisons
While the company’s order book is robust, it lags behind competitors like Mazagon Dock Shipbuilders and Garden Reach Shipbuilders & Engineers due to the deferral of the IAC-II order. This has led Antique to predict that Cochin Shipyard’s stock may underperform its peers due to relatively weaker revenue visibility.
Analyst recommendations remain mixed, with three out of five analysts rating the stock as a ‘Buy,’ one suggesting ‘Hold,’ and one recommending ‘Sell.’
Strategic Growth in Ship Repair
Antique noted that an increasing focus on the ship-repair business could boost Cochin Shipyard’s blended margins. This shift aligns with the company’s strategy to diversify its revenue streams and strengthen its position in the competitive shipbuilding and repair market.
Why This Matters for Investors
Cochin Shipyard’s Q4 results highlight its resilience in a challenging industry. The combination of strong revenue growth, a healthy order book, and a shareholder-friendly dividend makes it an attractive option for investors seeking exposure to India’s defence and shipbuilding sectors. However, potential investors should weigh the risks of margin pressure and competitive challenges before making decisions.
Conclusion
Cochin Shipyard’s Q4 FY 2024-25 performance reflects its operational strength and market potential. With a solid order book, a strategic push into ship repair, and a commitment to rewarding shareholders, the company is well-positioned for growth. Investors will be keenly watching the AGM for dividend approval and further updates on the company’s strategic roadmap.
Disclaimer: The stock market is subject to risks, and investors should conduct thorough research or consult financial advisors before investing.
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