Cochin Shipyard Q1 FY27: consolidated PAT down 19% YoY to ₹151 Cr as margins compress

Cochin Shipyard's consolidated Q1 FY27 (quarter ended June 30, 2026) print shows revenue of ₹1,094.2 Cr, up a modest 2.4% YoY from ₹1,068.6 Cr, while PAT fell 19.4% YoY to ₹151.5 Cr from ₹187.8 Cr — a profit decline despite revenue growth. There are no exceptional items in either the current or year-ago column, so the raw and adjusted YoY reads are identical (-19.4%); this is genuine margin erosion, not a one-off distortion. Sequentially PAT is down 45.2% QoQ from Q4 FY26's ₹276.5 Cr, but Q4 is typically the strongest print for a project-billing business like shipbuilding as milestones and year-end deliveries cluster, so the QoQ drop reads as largely seasonal rather than fresh deterioration; YoY is the cleaner signal here. No reliable, quarter-specific consensus estimate could be benchmarked against this print — a web search surfaced only last year's actual Q1 FY26 numbers mislabeled as a preview — so vsStreet is marked unknown rather than guessed.

The margin story is the real headline. Net profit margin (PAT/total income) compressed to 13.0% from 16.7% a year ago and 16.9% last quarter, while operating margin (PBT + finance cost + depreciation − other income, over revenue) fell to roughly 17.7% from 22.6% YoY and 20.9% QoQ. The driver is a segment mix shift: Ship building revenue jumped 59.5% YoY to ₹700.0 Cr while Ship Repair — the higher-margin segment, at a 34% PBIT margin this quarter versus shipbuilding's 9% — fell 37.4% YoY to ₹394.2 Cr. That shows up directly in costs: cost of materials consumed rose 39.4% YoY to ₹453.3 Cr, well ahead of 2.4% revenue growth. Finance costs more than doubled YoY (+108%) to ₹25.4 Cr as the group's debt-equity ratio rose to 0.21 from just 0.03 a year earlier.

The stock went into the print at ₹1,496.5, up 6.4% over the past month of trading.

For context: PAT has now risen for 2 consecutive quarters.

EPS (basic, not annualised) — consolidated ₹5.76 vs ₹10.51 in Q4 FY26 and ₹7.14 in Q1 FY26.

Standalone PAT fell more steeply than consolidated — down 27.7% YoY to ₹135.8 Cr versus ₹187.9 Cr a year ago — while the two subsidiaries, Udupi CSL and Hooghly CSL, contributed a combined ~₹15.4 Cr of profit this quarter per the auditor's note, cushioning the group number; readers looking only at the standalone print will see a materially weaker picture than the consolidated headline. Management gives no formal quarterly guidance on record, and neither our database nor a web search turned up a prior outlook to grade this print against; a press release with management's own framing of the quarter was not available at extraction time. The quarter's corporate developments — a promoter (President of India) OFS worth ~₹1,113 Cr reducing its stake by up to 5.04%, plus a CMD charge extension and new nominee/senior-management appointments — are governance-side events unconnected to the P&L. The more substantive open items are the auditors' emphasis-of-matter notes: two Andaman & Nicobar passenger vessels (₹819 Cr contract, ~55% complete, delivery dates lapsed since 2023) remain in provisioning limbo pending reallocation talks, with ~₹215.7 Cr of liquidated damages already recognized, and Hooghly CSL's lease accounting and delayed lease-rent interest provisioning were flagged as inconsistent with governing deeds — neither is quantified as a P&L impact yet but both are candidates for future adjustment.