India's defense sector is back in focus amid escalating geopolitical tensions and the recent launch of Operation Sindur against terrorism. In this environment, the push for self-reliance in defense manufacturing is gaining momentum, and Cochin Shipyard Limited (CSL), a public sector undertaking, stands out as a key beneficiary.
Cochin Shipyard has been quietly cementing its role as a cornerstone of India's naval strength and maritime capabilities. The company boasts a robust order book worth ₹22,000 crore—more than five times its annual revenue, offering strong earnings visibility. And the momentum isn't slowing. The pipeline of future orders continues to grow steadily.
In the first nine months of the financial year 2025, Cochin Shipyard reported revenue of ₹3,620 crore, marking a 20% year-on-year increase. Notably, ship repair revenue surged 46%, while shipbuilding revenue grew by over 10%. CSL's growth story extends beyond defense as well. The company has entered into collaborations with global players like MK and Drydocks World, paving the way for ship repair partnerships and offshore fabrication hubs in Kochi and Vinar.
In August 2024, CSL’s new integrated ship repair facility became operational. With the capacity to service six vessels simultaneously, this facility is expected to deliver meaningful financial gains from FY26 onwards. By September 2024, the ship repair order book alone stood at ₹1,000 crore, with most projects slated for execution in FY26 and FY27.
Looking ahead, Cochin Shipyard is guiding for a 20–25% revenue growth in FY26. This optimistic outlook is driven by enhanced execution capabilities, ongoing capacity expansion, and high-value defense projects such as the INS Vikramaditya refit. While near-term margins may face some pressure, long-term prospects remain strong, supported by government policies, strategic partnerships, and scalable operations.
Shares of Cochin Shipyard have surged 58% from their February 2025 low. Today as well, the stock is trading 12% higher at ₹2,019 on the NSE, reflecting strong investor confidence in its growth trajectory.
At 33 times its FY27 estimated earnings, CSL is trading at a reasonable valuation considering its growth potential and improving financials. Cochin Shipyard is not merely capitalizing on India's rising defense spending—it is actively shaping it
Disclaimer:
The information provided in this article is for informational purposes only and does not constitute investment advice. Readers are advised to do their own research or consult a financial advisor before making any investment decisions. The author and the blog are not responsible for any losses arising from investments based on this content.
