Cochin Shipyard shares fell as much as 9.07% to ₹1,382.50 on Friday, after the company's FY27 EBITDA margin guidance of around 14% disappointed investors. The stock hit an intraday low of ₹1,382.50 on the National Stock Exchange (NSE), compared with Thursday's closing price of ₹1,520.40 apiece. During its investor call on Thursday, the company guided for revenue growth of 12% in FY27, with potential to rise to 15%, but expects margins to stabilize around 14%, compared to the 24% figure it delivered in FY26. The company's revenue mix is expected to be around 70% from shipbuilding and 30% from ship repair going forward. Management expects shipbuilding margins to settle at 10%-12% and ship repair margins to remain between 22%-24% in FY27.
Cochin Shipyard Ltd (CSL) and Drydocks World, owned by UAE's ports giant DP World, have officially signed the 50:50 joint venture agreement to operate the International Ship Repair Facility (ISRF) in Kochi. The agreement was executed on the sidelines of the BRICS Summit 2026 in New Delhi by Captain Rado Antolovic, CEO of DDW, and Jose V J, Chairman and Managing Director of Cochin Shipyard. The signing took place in the presence of Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways, and Omran Sharaf Alhashimi, UAE Assistant Foreign Minister for Advanced Science and Technology. The facility, which started operations in 2024 and was owned solely by CSL, will now be operated, consolidated and expanded by the new partnership. The collaboration builds on the memorandum of understanding signed by Drydocks World and CSL during India Maritime Week 2025, under which the two organisations agreed to explore opportunities for cooperation in ship repair and allied maritime services. The partnership marks the establishment of what the companies describe as a first-of-its-kind public-private partnership in India's ship repair sector, bringing together the capabilities of a leading global shipyard operator and India's largest shipbuilding and ship repair company.
Under the proposed arrangement, CSL will transfer the ISRF to the new joint venture company on a slump-sale basis as a going concern for a consideration of not less than ₹1,800 crore. As reported by CNBC TV18, CSL will receive ₹900 crore in cash (50% of the consideration) and ₹900 crore in equity stake in the JV company. The proposed JV will be incorporated as a private limited company under the Companies Act, 2013, with its registered office in Kochi, with CSL and DDW holding 50% each of the share capital. The ISRF's value, based on third-party independent valuations, stands at ₹1,800 crore, equivalent to around 30.55% of Cochin Shipyard's net worth as of March 31, 2026. This strategic move unlocks ₹900 crore in cash reserves for CSL, significantly boosting its liquidity position and providing crucial funds to support ongoing expansion projects. The company has a total market capitalisation of ₹36,310.41 crore as of September 11, 2026.
Cochin Shipyard reported consolidated net profit of ₹151.45 crore in Q1 FY27, declining 19.38% compared to the same period last year. Revenue from operations increased 2.40% to ₹1,094.21 crore during the quarter, as against ₹1,069.33 crore in Q1 FY26. EBITDA stood at ₹260 crore with an EBITDA margin of 24%, while the PAT margin was 14%. The company delivered three vessels during the quarter, while its wholly owned subsidiary Udupi Cochin Shipyard also delivered three vessels. Management is targeting the delivery of 10 vessels in FY27. The company's unexecuted order book stood at around ₹21,900 crore, comprising ₹11,900 crore of defence orders, ₹1,600 crore of domestic commercial orders, ₹7,200 crore of commercial export orders and ₹1,200 crore of ship repair orders. The company has been declared L1 for five Next Generation Survey Vessels for the Indian Navy, with an estimated value of around ₹5,000 crore.
The company's defence opportunity pipeline includes four Landing Platform Docks (LPDs) worth around ₹32,000 crore, 12 Mine Counter Measure Vessels (MCMVs) worth around ₹36,000 crore and seven P17 Bravo vessels worth around ₹49,000 crore. The combined potential value of these programmes is estimated at more than ₹1.17 lakh crore, based on the management update. The joint venture plans to expand the ISRF by adding 10 workstations to enhance its operational capacity and service offerings. Management expects the facility to generate around ₹600 crore in revenue within two years, scaling up to ₹1,000-1,200 crore in five years. The existing facility has six workstations and can handle up to six vessels simultaneously, with an annual throughput capacity of up to 82 ships. An executive confirmed that the JV has already received an order for the repair of two vessels, demonstrating immediate operational momentum. The partnership combines CSL's established shipbuilding and repair capabilities, engineering expertise and skilled workforce with Drydocks World's global experience in high-end vessel repair and maintenance, major conversions, and offshore engineering, procurement and construction (EPC).
The five-member board of the JV will have three directors nominated by DDW and two by CSL. According to CNBC TV18, DDW will also be entitled to nominate senior management personnel, including the CEO, CFO and COO. The joint venture agreement was signed on September 11, 2026, while the transaction is expected to be implemented before the end of the current financial year. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal emphasized that the JV is a significant step in strengthening India's ship repair ecosystem and a major opportunity for Kerala to emerge as a leading maritime services hub. He noted that by combining CSL's expertise with Drydocks World's global capabilities, the partnership will create new capacity, skills and economic opportunities for Kerala, while enhancing India's maritime competitiveness. The ISRF, spread across around 30 hectares at Willingdon Island, has been developed on land and water areas leased from the Cochin Port Authority for 60 years. The facility was constructed at a cost of ₹970 crore and has a 6,000-tonne ship lift and transfer system, six workstations and around 1,400 metres of berthing space. The facility can handle up to six vessels simultaneously and has an annual throughput capacity of up to 82 ships, with commercial operations beginning in August 2024 after inauguration in January 2024.
