According to data released by Cochin Shipyard, India’s largest state-owned shipyard, Cochin Shipyard achieved significant revenue growth in the first quarter of the 2025-26 fiscal year, mainly due to an increase in ship repair business. However, due to a significant increase in operating costs, although revenue was acceptable, net profit only saw a slight increase compared to the same period last year.
In the three months ended June 30, Cochin Shipyard achieved operating revenue of 9.77 billion rupees (about US$117 million), a significant increase from 7.1 billion rupees in the same period last year; and achieved a net profit of 1.88 billion rupees (about US$21 million), a slight increase from 1.81 billion rupees in the same period last year.
Cochin Shipyard stated that the lackluster profit growth was primarily due to a significant increase in company expenditures. Total expenses for the quarter jumped to 78.4 billion rupees (approximately US$0.90 billion), a significant increase from 54.8 billion rupees in the same period last year. The increase in expenses was primarily driven by subcontracting and other direct costs, which reached 23.7 billion rupees. Depreciation and amortization expenses also doubled to 29.1 billion rupees, with Cochin Shipyard attributing this to the recent capitalization of its new international ship repair facilities and new dry dock projects.
By business segment, Cochin Shipyard’s two main business segments show a stark contrast. Overall revenue growth was driven entirely by the ship repair business, which saw its revenue surge from 2.45 billion rupees to 6.3 billion rupees. In contrast, revenue from the shipbuilding business fell from 4.65 billion rupees to 3.48 billion rupees.
Public information indicates that Cochin Shipyard, located in Kerala, southern India, is 67.91% owned by the Indian government. The company has the capability to design, build, and repair a wide range of ships, from merchant ships to aircraft carriers. Over the past five years, it has delivered 70 ships, including 60 small merchant ships and 10 naval ships. As India’s largest shipbuilding and repair facility, Cochin Shipyard’s new drydock and international ship repair center were completed on January 17, 2024.
Earlier this year, Cochin Shipyard also announced plans to establish a brand-new shipbuilding base in Cochin Port, with a total investment of 20 billion rupees (approximately US$229 million). The shipbuilding base will be constructed in collaboration with foreign partners and will be owned by Cochin Shipyard upon completion.
In related news, Cochin Shipyard recently signed a comprehensive Memorandum of Understanding (MoU) on “long-term cooperation in the shipbuilding sector” with HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company of HD Hyundai Group’s shipbuilding business.
Under the agreement, HD KSOE will support Cochin Shipyard in design and procurement, production efficiency improvement, and technical cooperation to ensure that global shipbuilding quality standards are met. The two parties will also seek strategic cooperation in areas such as human resource development and advanced training systems. In the future, they will also jointly explore shipbuilding order opportunities in India and overseas markets.