Cochin Shipyard Limited (CSL) has secured a major defence opportunity after being identified as the lowest bidder (L1) for a prestigious Indian Navy project valued at approximately ₹5,000 crore. The contract pertains to the construction of five Next Generation Survey Vessels (NGSVs), as per a tender issued by the Ministry of Defence.

In a regulatory filing, the company confirmed its L1 status in the bidding process. The formal award of the contract will follow the completion of required procedural and administrative formalities. Further updates will be provided once the agreement is officially executed.

Project Significance

The proposed NGSVs are expected to enhance the Indian Navy’s hydrographic and maritime survey capabilities, strengthening strategic maritime infrastructure. Once formalised, the order will significantly add to Cochin Shipyard’s defence order book and reinforce its position in naval shipbuilding.

Financial Performance in Q3

Cochin Shipyard released its third-quarter results recently, reflecting mixed performance trends.

• Net Profit: Declined 18.3% year-on-year to ₹144.6 crore, compared to ₹177 crore in the same quarter last year.
• Revenue: Increased 17.7% to ₹1,350.4 crore, up from ₹1,147.6 crore a year ago.
• EBITDA: Fell 21.5% to ₹186.6 crore from ₹237.6 crore in the corresponding period of the previous fiscal.
• EBITDA Margin: Contracted to 13.8%, compared to 20.7% in the year-ago quarter.

While revenues showed healthy growth, profitability was impacted due to margin compression.

Dividend Announcement

The company has declared a second interim dividend of ₹3.50 per equity share for the financial year 2026. February 3 was fixed as the record date to determine shareholder eligibility. The dividend payout is scheduled to be completed on or before February 26, 2026.

Summary

Cochin Shipyard has emerged as the lowest bidder for a ₹5,000 crore contract from the Ministry of Defence to build five Next Generation Survey Vessels for the Indian Navy. The final award remains subject to procedural clearances. While the company reported strong revenue growth in Q3, profitability and margins declined year-on-year. Additionally, it announced a second interim dividend of ₹3.50 per share for FY26.

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