Defence Stock Jumps 7% After Bagging ₹5,000 Cr Work Order for the Indian Navy

Synopsis: With the stock giving a 3 year compounded return of 82 percent, the company in context has been named L1 bidder by the Ministry of Defence to build five Next Generation Survey Vessels for the Indian Navy in an estimated Rs 5,000 crore contract.

A mid- cap stock surged by 7 percent as the company in the business of shipbuilding, repair, and marine engineering emerged as the L1 bidder for a Rs 5,000 crore defence order to build five advanced survey vessels, strengthening its role in India’s naval manufacturing ecosystem.

With its market cap around Rs 40,000 Cr, Cochin Shipyard Ltd saw its stock hit an intraday high of Rs 1575 which is 7 percent higher than the previous close of Rs 1468. The company stock has given a compounded return of 82 percent in the last three years.

News

Cochin Shipyard Limited has been declared the L1 bidder by the Ministry of Defence for constructing five Next Generation Survey Vessels for the Indian Navy. The total estimated contract value is around Rs 5,000 crore

This order marks a major defence shipbuilding milestone and strengthens CSL’s position in India’s naval manufacturing sector. The final contract award remains subject to completion of procedural formalities, after which official confirmation will be announced.

A few weeks back, the company also secured an order from Polestar Maritime Limited to build two 60 ton bollard pull Green Tugs under the Green Tug Transition Programme of the Ministry of Ports, Shipping and Waterways. Though the order value was not specifically mentioned it is expected to be in the range of Rs 100 Crore to Rs 250 Crores, and was scheduled for deliveries in August and September 2027.

Order Book and Mix

As of Q2FY26, Cochin Shipyard Ltd had an order book of about Rs 21,100 crore. This number is dominated by Defence projects with Rs 13,700 crore orders across 14 vessels making 65 percent of the order book, while commercial domestic stood at 8 percent with orders worth Rs 1,700 crore from 34 vessels. Export commercial orders account for 20 percent of the book with Rs 4,200 crore value covering 27 vessels, and the rest 7 percent from ship repair contracts that add nearly Rs 1,500 crore.

Business & Financial Overview

Cochin Shipyard Ltd was incorporated in 1972 and is headquartered in Kochi, Kerala. It is India’s largest public sector shipyard, engaged in shipbuilding, ship repair, and maintenance for commercial vessels, offshore platforms, and defence ships, serving both domestic and international clients.

The company plays a strategic role in India’s maritime and defence ecosystem, undertaking construction of warships, patrol vessels, and specialised vessels for the Indian Navy and Coast Guard. It also provides dry docking, refurbishment, and engineering solutions, supporting global shipping lines and offshore energy companies.

In the latest quarter the company saw a YoY revenue growth of 17 percent, going from Rs 1,148 Cr in Q3FY25 to Rs 1,350 Cr in Q3FY26, while the QoQ went up by 21 percent from Rs 1,119 Cr in Q2FY26. The YoY Net Profits  fell by 18 percent, going from Rs 177 Cr in Q3FY25 to Rs 145 Cr in Q3FY26, while the QoQ growth stood at 34 percent from Rs 108 Cr in Q2FY26.

The company has a 3 year sales CAGR of 15 percent, while the TTM is at 22 percent. The company’s 3 year profit CAGR is at 13 percent, while the TTM number is at a negative 9 percent. The company also has a ROCE of 20 percent and a ROE of 16 percent.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Defence Stock Jumps 7% After Bagging ₹5,000 Cr Work Order for the Indian Navy appeared first on Trade Brains.