Cochin Shipyard margin falls as costs outpace revenue growth
Revenue rose 2.40% year on year, but expenses grew 8.92%, while lower sequential tax and interest costs partly cushioned the profit decline.
Filed 14 Aug 2026, 17:52 IST · after market close · Cochin Shipyard Ltd (COCHINSHIP)
Key takeaways
- Consolidated operating margin fell 4.94 percentage points year on year to 17.65% as expenses grew 8.92% against revenue growth of 2.40%.
- Net profit declined 19.37% year on year, while other income contributed 33.11% of pre-tax profit.
- Quarter-on-quarter operating margin narrowed 3.22 percentage points, but remained 3.23 percentage points above the 14.42% median of 146 reported Industrials peers.
Price around the results
Revenue growth did not translate into profit growth
Consolidated revenue increased only 2.40% year on year, while operating profit fell 19.96% because expenses grew much faster than sales. Sequentially, revenue fell 26.28% and operating profit declined 37.64%, extending the gap between the top line and operating earnings. Net profit fell 19.37% year on year and 45.22% quarter on quarter.
Higher costs and interest weighed on earnings quality
Operating margin narrowed 4.94 percentage points year on year as expenses rose 8.92% against revenue growth of 2.40%; interest expense also increased 108.38%. Other income accounted for 33.11% of pre-tax profit, making a sizeable contribution to reported earnings. Sequentially, the tax rate fell 6.12 percentage points and interest expense declined 21.36%, which cushioned the profit contraction.
Margin recovery paused after two quarters of improvement
Operating margin had risen from 6.59% in Q2FY26 to 13.82% in Q3FY26 and 20.87% in Q4FY26, before slipping to 17.65% in Q1FY27. Despite the sequential decline, the margin was 3.23 percentage points above the 14.42% median for 146 Industrials peers that had reported the quarter.
No immediate stock reaction was available after the filing
The consolidated results were filed after market close, so there is no immediate stock reaction to assess. Across the stock's eight recent result-day reactions, it rose three times and fell five times, with a median absolute move of 4.73%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,094 cr | ₹1,484 cr | -26.28% | +2.40% |
| Other income | ₹67 cr | ₹157 cr | -57.32% | +23.39% |
| Expenses | ₹901 cr | ₹1,175 cr | -23.29% | +8.92% |
| Operating profit | ₹193 cr | ₹310 cr | -37.64% | -19.96% |
| Operating margin (%) | 17.65% | 20.87% | — | — |
| Interest | ₹25 cr | ₹32 cr | -21.36% | +108.38% |
| Depreciation | ₹32 cr | ₹32 cr | +1.19% | -4.74% |
| Profit before tax | ₹202 cr | ₹403 cr | -49.70% | -18.85% |
| Tax | ₹51 cr | ₹126 cr | -59.53% | -17.31% |
| Net profit | ₹151 cr | ₹276 cr | -45.22% | -19.37% |
| EPS (₹) | ₹5.76 | ₹10.51 | -45.20% | -19.33% |
Operating margin of 17.65% compares with a Industrials sector median of 14.42% across 146 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 17.65% after the 3.22-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the 8.92% year-on-year expense increase.
- Whether other income's contribution falls from 33.11% of pre-tax profit.