The share price of Cochin Shipyard surged over 6% in the early trade today (February 17) after the state-run company said it has emerged as the lowest bidder (L1) for a major defence contract worth around Rs 5,000 crore.
The project involves building five Next Generation Survey Vessels (NGSV) for the Indian Navy under a tender floated by the Ministry of Defence. The announcement was made in a regulatory filing after market hours on February 16.
Let’s take a look at the 5 key things investors should know –
Cochin Shipyard: What the Rs 5,000 crore order means
According to the company’s exchange filing, it has been declared L1 for constructing five survey vessels for the Navy.
Being L1 means the company has quoted the lowest bid among competitors. However, the final contract will be awarded only after completion of required formalities.
Cochin Shipyard: Final contract award subject to regulatory approvals and formalities
The company through the exchange filing also clarified that the order is subject to necessary approvals and procedural clearances.
“The final announcement of the contract will be subject to the satisfactory completion of necessary formalities in this regard, which will be updated in due course,” said the company in the regulatory filing.
The firm said it will update exchanges once there is further progress.
Cochin Shipyard: Recent business developments
Earlier in January, Cochin Shipyard secured another order from Polestar Maritime for building two Green Tugs under the government’s Green Tug Transition Programme.
The company classifies this as a “notable” order, typically valued between Rs 100 crore and Rs 250 crore. These tugboats are scheduled for delivery in August and September 2027.
Cochin Shipyard: Latest quarterly performance
In its third-quarter results for FY26 (Q3FY26), the net profit of the company declined 18.3% year-on-year to Rs 144.6 crore from Rs 177 crore.
Furthermore, Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 21.5% to Rs 186.6 crore from Rs 237.6 crore in the previous year. The EBITDA margin also narrowed to 13.8% from 20.7%.
However, revenue grew 17.7% to Rs 1,350.4 crore compared to Rs 1,147.6 crore in the same period last year. The company also announced a second interim dividend of Rs 3.5 per share for FY26, with February 3 fixed as the record date. The dividend is expected to be paid on or before February 26, 2026.
Cochin Shipyard stock performance
In the past five trading sessions, the share price has fallen around 5%. Over the last six months, it has delivered a negative return of 14%, and so far in 2026, the stock is down about 9%.
On a one-year basis, however, the stock has gained 21%. The 52-week high stands at Rs 2,545, while the 52-week low is Rs 1,180.20.