Cochin Shipyard shares tank 8% after Q2 profit drops, provisions quadruple from last year

The company’s revenue declined by 13% from last year to ₹951 crore, while brokerages such as Kotak were expecting the company’s topline to grow by 10% from last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 71% to ₹56 crore from ₹196 crore last year. EBITDA margin was down to just 5.9% from 17.87% last year. Kotak expected EBITDA growth of 12% for the company.

Operating performance for the quarter was hit due to a sharp jump in subcontracting expenses and provisions. Provisions during the quarter quadrupled from last year to ₹21 crore. However, they were down 37% on a sequential basis.

Subcontracting expenses also increased by 50% from last year to ₹207 crore, but were down 13% from the June quarter.

The company has declared an interim dividend of ₹4 per equity share of ₹5 each, representing a payout of 80% for the financial year 2025-26. It has fixed Tuesday, November 18, 2025, as the record date to determine the eligibility of shareholders for the interim dividend. The interim dividend will be paid to eligible shareholders on or before December 11, 2025.

Shares of Cochin Shipyard are trading 5.5% lower in early trades on Thursday at ₹1,693.3.