₹21,100 Cr Order Book: Defence stock jumps after securing order worth up to ₹250 Cr

Synopsis: Cochin Shipyard shares gained after the company secured a Rs. 100–250 crore notable order from Polestar Maritime for two green tugs under the GTTP scheme, strengthening its order book.

This is a leading player in the construction of all kinds of vessels, repairs and refits of all types of vessels, including periodic upgradation and life extension of ships is now in the spotlight after securing an order from Polestar Maritime Limited.

With a market capitalisation of Rs. 42,968 cr, the shares of Cochin Shipyard Ltd are currently trading at Rs. 1,629 per share, increasing 2% in today’s market session, making a high of Rs. 1,647.05, up from its previous close of Rs. 1,610.30 per share.  The stock gained 12% over the past year, is flat year-to-date, and is up 1% in the last month.

About the order

Cochin Shipyard Limited has secured a Notable domestic order from Polestar Maritime Limited for the construction of two Green Tugs with 60-ton Bollard Pull capacity under the Green Tug Transition Programme (GTTP) of the Ministry of Ports, Shipping and Waterways, Government of India. 

The project aligns with the Government’s initiative to promote environmentally sustainable maritime operations. The two tugs are scheduled for delivery in August 2027 and September 2027, respectively. 

The order falls in the Rs. 100–250 crore value bracket under the company’s order classification. It has confirmed that neither its promoters nor promoter group entities have any interest in Polestar Maritime Limited, and the transaction does not qualify as a related party transaction. 

Cochin Shipyard Ltd is one of India’s leading shipbuilding and ship repair companies, located in Kochi, Kerala. It plays a key role in building and repairing commercial vessels, defence ships, and offshore structures. It is especially known for its work for the Indian Navy and Coast Guard, as well as for handling large international ship repair projects.

It has strong profitability with an ROCE of 20.4% and an ROE of 15.8%, low leverage with a debt-to-equity ratio of 0.18, and follows a healthy dividend payout of 42.9%.

For Q3FY26, the company reported sales of Rs. 1,165 crore, registering a YoY growth of 9% compared to Rs. 1,070 crore in Q3FY25. EBITDA declined sharply by 3% YoY to Rs. 166 crore from Rs. 242 crore, reflecting margin pressure. Net profit stood at Rs. 138 crore, down 25% YoY from Rs. 184 crore, while EPS fell by 25% YoY to Rs. 5.23 from Rs. 7.01.

Order Book and Dividend

As of Q2FY26, Cochin Shipyard has a healthy order book of around Rs. 21,100 crore, providing clear revenue visibility. This includes Rs. 19,600 crore from shipbuilding orders across 75 vessels, led by the defence segment at Rs. 13,700 crore, followed by commercial export and domestic orders. 

Additionally, ship repair orders worth about Rs. 1,500 crore further strengthen its overall order pipeline, reflecting a balanced mix of defence, commercial, and green vessel projects.

It also announced that its Board of Directors, at a meeting held on January 28, 2026, declared the second interim dividend of Rs. 3.50 per equity share (70%) for FY 2025–26. The dividend will be paid by February 26, 2026, subject to tax deduction, to shareholders whose names appear on the records as of February 3, 2026.

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