Analyst Concall
Cochin Shipyard targets 14% EBITDA margin for next 2 years
This story was originally published at 16:40 IST on 10 September 2026
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--Cochin Shipyard: See JV with Drydocks World Dubai aiding with global orders
--CONTEXT: Cochin Shipyard's JV with Drydocks World Dubai in Kochi
--Cochin Shipyard: Actively looking at bagging commercial ship orders in FY27
--CONTEXT: Comments by Cochin Shipyard mgmt in call with analysts
--Cochin Shipyard: Targeting EBITDA margin of 14% for next two years
--Cochin Shipyard: See 12-15% revenue from current order book for next 2 yrs
By Astha Oriel and Avishek Rakshit
NEW DELHI/KOLKATA – State-owned Cochin Shipyard is targetting earnings before interest, tax, depreciation and amortisation margin of 14% for the next two financial years, the company's management said in an analyst conference call Thursday. The company expects ship building EBITDA margin at 10% to 12%, and that for ship repair at around 22% to 24%, a company official said.
The defence company expects to see 12-15% revenue from the current order book in the next two years, according to the management. Currently, the company has an unexecuted order book of INR 222 billion, as per the mangement.
"We have also declared an L1 for a wide number of next generation survey vessels for the Indian Navy valued at approximately INR 5,000 crores (INR 50 billion). Once this contract concludes, the order book will be around INR 27,000 crores (INR 270 billion)," the management said.
The company is also actively looking at bagging commercial ship orders in the current financial year, as per the management. Its commercial order book for the domestic and international market is INR 16 billion and INR 72 billion, respectively, as per the company's investor presentation.
On Wednesday, the company approved plans to form a joint venture with Drydocks World Dubai - Free Zone Co. to operate the International Ship Repair Facility at Willingdon island, Kochi. As per the proposal, the facility will be transferred to the joint venture company on a slump sale basis as a going concern for a consideration of not less than INR 18 billion. Cochin Shipyard will receive 50?sh and 50% in shares of the joint venture after the slump sale, the company said in an exchange filing.
The company expects the joint venture with Drydocks World Dubai to help with global orders, as per the management. "We are expecting more of, you know, global vessels to be brought in by the JV (joint venture) by DWD (Drydocks World Dubai) and because they will now want to tap into their global clientele," a senior company official said.
Notably, in June, the company incorporated a joint venture named Green Maritime Propulsion Pvt. Ltd. in partnership with HBL Engineering Ltd. to develop electric mobility technology and energy storage solutions in the maritime space. Cochin Shipyard has 40% stake, while HBL Engineering has 60% stake in the joint venture.
"The company is targetting a revenue of INR 640 crore (INR 6.4 billion) by fifth year. This is our plan... We are targetting a margin of over 20%," the management said, adding that the company expects a lot of orders for batteries in the coming years.
"The purpose of sponsoring that JV is that, see now HBL is the number one battery manufacturer but they are not in the marine sector. And we have expertise in the marine sector. So this company will modernise the battery requirements for the marine usage," the management said. Cochin Shipyard, however, doesn't expect any meaningful revenue from the joint venture in the immediate future, it said.
For the June quarter, the company reported a net profit of INR 2.16 billion on revenues of INR 12.14 billion. Thursday, shares of the company closed 2.2% lower at INR 1,520.40 apiece on the National Stock Exchange. End
Edited by Avishek Dutta
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