Cochin Shipyard's margin rebounds, but net profit falls 3.73% YoY
Costs fell faster than revenue, lifting operating margin to 20.87%, but higher interest, tax and other-income dependence held back earnings.
Filed 15 May 2026, 19:24 IST · after market close · Cochin Shipyard Ltd (COCHINSHIP)
Key takeaways
- Consolidated operating margin rose 5.75 percentage points year on year to 20.87% because expenses fell faster than revenue.
- Net profit fell 3.73% year on year despite 16.55% operating-profit growth, as the tax rate rose 6.10 percentage points and interest expense increased 174.23%.
- The stock fell 5.08% after the results, a larger move than its 3.58% median absolute reaction to the past eight results.
Price around the results
Margin recovery outpaced revenue momentum
Consolidated revenue fell 15.55% year on year, but expenses declined 21.27%, allowing operating profit to rise 16.55%. Operating margin consequently improved by 5.75 percentage points to 20.87%. Sequentially, revenue grew 9.91% while expenses rose only 0.92%, lifting margin by 7.05 percentage points from Q3FY26.
Higher financing and tax costs weakened profit conversion
Net profit declined 3.73% year on year even as operating profit grew, because interest expense rose 174.23% and the tax rate increased by 6.10 percentage points. Other income was nearly unchanged year on year, but accounted for 39.01% of profit before tax, making reported earnings meaningfully dependent on non-operating income. Sequentially, other income rose 120.78% and contributed to the 91.11% increase in net profit.
Margin now sits above the industrials peer median
Operating margin improved from 6.59% in Q2FY26 to 13.82% in Q3FY26 and 20.87% in Q4FY26, marking a second straight quarterly recovery. It was 5.21 percentage points above the 15.66% median for the 71 Industrials peers that had reported the quarter. The sequential improvement is stronger than the year-on-year picture because Q4FY25 had higher revenue but a lower 15.12% margin.
The market reaction was negative and somewhat larger than usual
The stock fell 5.08% on the first trading session after the results and was down 9.61% after 15 sessions. The initial decline was larger than the 3.58% median absolute move across the past eight result reactions, although the direction was not unusual: four reactions were up and four were down.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,484 cr | ₹1,350 cr | +9.91% | -15.55% |
| Other income | ₹157 cr | ₹71 cr | +120.78% | -0.05% |
| Expenses | ₹1,175 cr | ₹1,164 cr | +0.92% | -21.27% |
| Operating profit | ₹310 cr | ₹187 cr | +66.00% | +16.55% |
| Operating margin (%) | 20.87% | 13.82% | — | — |
| Interest | ₹32 cr | ₹28 cr | +15.01% | +174.23% |
| Depreciation | ₹32 cr | ₹33 cr | -2.83% | +18.09% |
| Profit before tax | ₹403 cr | ₹197 cr | +104.58% | +4.82% |
| Tax | ₹126 cr | ₹52 cr | +141.97% | +30.15% |
| Net profit | ₹276 cr | ₹145 cr | +91.11% | -3.73% |
| EPS (₹) | ₹10.51 | ₹5.50 | +91.09% | -3.75% |
Operating margin of 20.87% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.08% | -5.11% |
| Next session | -6.58% | — |
| 5 sessions | -4.11% | -5.75% |
| 15 sessions | -9.61% | — |
| 30 sessions | -5.65% | — |
Volume on the results session was 1.30× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 20.87%.
- Whether other income remains below its 39.01% share of profit before tax.
- Whether interest expense growth moderates from +174.23% year on year.