Cochin Shipyard ↗

CSL is a CPSE, with majority ownership (63.33% holding as on July 31, 2026) of the GoI, operating under the administrative control of the Ministry of Ports, Shipping and Waterways. CSL was granted ‘Miniratna’ status in 2013, and its board of direct ors includes nominee directors from GoI and the Government of Kerala (GoK). CSL built India’s first indigenous aircraft carrier (IAC) for the Indian Navy, becoming the only Indian shipyard with such a

As on June 30, 2026, CSL had an order book of ~₹22,223 crore, providing strong revenue visibility in the medium term. While majority order book is skewed towards defence orders, the company has diversified its portfolio with orders from Europe. The share of defence orders reduced from ~88% to ~57%, while foreign commercial shipbuilding accounted for 29% of the order book as on June 30, 2026. CSL forayed into the small and mid-sized commercial vessel segment through its subsidiaries, UCSL

Supported by a strong order book and healthy execution, CSL’s scale of operations increased from ~₹3,000 crore from FY22- FY23 to ~₹5,000 crore in FY25 and FY26. Revenue grew by 4% from ₹4,846 crore in FY25 and ₹5,036 crore in FY26. Ship repair is the relatively higher-margin segment. With revenue from this segment declining by ~₹200 crore in FY26, the operating margin moderated from 19.03% in FY25 to 16.79% in FY26. The margin remains healthy compared to industry levels.

CSL’s capital structure remained comfortable, with overall gearing of 0.31x as on March 31, 2026. The company receives intere st- free milestone-based advance payments which support its working-capital requirements. As on June 30, 2026, CSL’s consolidated order book included ₹6,038 crore of export orders(29% of the consolidated order book). The company receives advances of only 20-30% on export orders, with the balance received at the time of delivery. This results in a working-capital gap for w

The shipbuilding industry is expected to witness sustained growth, driven by a healthy order pipeline from the defence sector, increased focus on maritime security, and the GoI’s thrust on indigenisation under the ‘Aatmanirbhar Bharat’ initiative. Demand prospects remain favourable, led by the Indian Navy and Coast Guard’s ongoing fleet modernisation programmes, and rising requirements for commercial vessels. The industry is further aided by policy measures, such as the revamped Shipbuilding Fin

CSL’s shipbuilding and ship-repair businesses cater to international clients, and a large portion of components and raw materials are imported, exposing the company to significant foreign currency risk. CSL has incorporated a foreign exchange rate fluctuation clause in agreements with select clients, where fluctuations are passed on to customers. The company has a board-approved Forex Risk Management Policy and hedges exposures depending on market conditions. Forward cover is opted for based on

CSL’s operations remain working capital-intensive, primarily due to substantial upfront procurement of materials and advances extended. With increasing export orders, there is an increasing reliance on working capital lines.