Cochin Shipyard margin falls to 4.08% as costs outpace revenue
Consolidated net profit halved year on year, with other income contributing more than the reported profit before tax.
Filed 10 Nov 2026, 14:27 IST · after market close · Cochin Shipyard Ltd (COCHINSHIP)
Key takeaways
- Consolidated operating margin fell 13.57 percentage points sequentially to 4.08% as expenses grew 32.99%, faster than revenue growth of 14.16%.
- Net profit declined 50.00% year on year to Rs 53.77 cr, while other income equalled 110.02% of profit before tax.
- The 4.08% operating margin was 7.42 percentage points below the 11.5% median for 201 Industrials peers that had reported.
Price around the results
Costs erased the sequential revenue gain
Consolidated revenue rose 14.16% sequentially and 11.68% year on year, but expenses grew 32.99% sequentially and 14.67% year on year. That mismatch reduced operating profit 73.63% sequentially and 30.84% year on year, taking operating margin down 13.57 percentage points sequentially and 2.51 percentage points year on year. Interest expense also rose 31.61% year on year, adding to the pressure below operating profit.
Profit quality was dominated by other income
Other income was 110.02% of profit before tax, so reported pre-tax profit was more than the operating business generated. Net profit fell 50.00% year on year and 64.50% sequentially; the year-on-year tax rate was almost unchanged, rising just 0.11 percentage points, while the sequential tax rate increased 3.18 percentage points. This makes the profit decline primarily an operating and other-income story rather than a tax-rate effect.
Margin has declined for two straight quarters
Operating margin fell from 20.87% in Q4FY26 to 17.65% in Q1FY27 and then 4.08% in Q2FY27. The latest margin was 7.42 percentage points below the 11.5% median among 201 Industrials peers that had reported, placing the company 23rd from the bottom. The sequential decline is therefore sharper than the year-on-year comparison alone suggests.
Results were filed after market close
The consolidated results were filed after market close, so there is no immediate market reaction to report. In the last eight results reactions, the stock fell six times and rose twice, with a median absolute move of 4.73%; the current filing therefore needs to be assessed against a history that has generally skewed negative.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,249 cr | ₹1,094 cr | +14.16% | +11.68% |
| Other income | ₹83 cr | ₹67 cr | +23.21% | -35.11% |
| Expenses | ₹1,198 cr | ₹901 cr | +32.99% | +14.67% |
| Operating profit | ₹51 cr | ₹193 cr | -73.63% | -30.84% |
| Operating margin (%) | 4.08% | 17.65% | — | — |
| Interest | ₹27 cr | ₹25 cr | +4.57% | +31.61% |
| Depreciation | ₹32 cr | ₹32 cr | -1.30% | +3.40% |
| Profit before tax | ₹75 cr | ₹202 cr | -62.92% | -49.92% |
| Tax | ₹21 cr | ₹51 cr | -58.24% | -49.72% |
| Net profit | ₹54 cr | ₹151 cr | -64.50% | -50.00% |
| EPS (₹) | ₹2.04 | ₹5.76 | -64.58% | -50.12% |
Operating margin of 4.08% compares with a Industrials sector median of 11.50% across 201 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.13% | -7.97% |
Volume on the results session was 10.26× its 20-day average.
What to watch
- Whether operating margin recovers from 4.08% after two consecutive quarterly declines.
- Whether expense growth moves below the 14.16% sequential revenue growth rate.
- Whether other income remains above 110.02% of profit before tax.