Cochin Shipyard cash outflow narrows to Rs 635.37 crore

Cochin Shipyard Limited reported a Rs 635.37 crore operating cash outflow for the half year ended September 30, 2026, as trade, other receivables and assets absorbed Rs 1,426.36 crore. The working-capital movement outweighed Rs 273.32 crore of operating cash flow before working-capital changes and a Rs 715.32 crore increase in trade and other payables.

Why did Cochin Shipyard report an operating cash outflow?

Cochin Shipyard reported the outflow because increases in receivables, other assets and inventory exceeded cash generated through higher payables. Trade, other receivables and assets increased by Rs 1,426.36 crore during the half year, while inventory increased by Rs 93.50 crore. Trade and other payables rose by Rs 715.32 crore, partly offsetting these uses of cash, but the net working-capital movement remained an outflow of Rs 531.21 crore.

The operating cash outflow was lower than the Rs 772.90 crore outflow reported for the half year ended September 30, 2025, but cash flow before working-capital changes also declined. Operating cash flow before working-capital changes fell to Rs 273.32 crore from Rs 380.18 crore a year earlier, while net income tax paid increased to Rs 104.16 crore from Rs 79.45 crore. The prior-period working-capital outflow was Rs 693.44 crore, including a Rs 857.58 crore increase in trade, other receivables and assets.

How much did Cochin Shipyard borrow by September 2026?

Cochin Shipyard's total borrowings increased by Rs 684.73 crore between March 31, 2026 and September 30, 2026, reaching Rs 1,783.59 crore. Non-current borrowings rose to Rs 371.43 crore from Rs 23.02 crore, while current borrowings increased to Rs 1,412.16 crore from Rs 1,075.84 crore. The balance sheet therefore records increases in both longer-term and current borrowing categories.

The cash-flow statement records Rs 348.79 crore in proceeds from unsecured long-term loans and Rs 1.39 crore in repayments during the half year. It also records Rs 3,257.22 crore of short-term borrowing proceeds and Rs 2,923.40 crore of short-term borrowing repayments. Net cash from financing activities was Rs 591.49 crore, compared with Rs 434.32 crore in the corresponding 2025 half year, after Rs 27.67 crore of finance costs, Rs 39.46 crore of dividend payments and Rs 25.10 crore of lease-liability repayments.

Which assets absorbed Cochin Shipyard's cash?

Cochin Shipyard's balance sheet shows a Rs 352.48 crore increase in trade receivables and a Rs 926.64 crore increase in other current assets between March 31 and September 30, 2026. Trade receivables reached Rs 775.70 crore from Rs 423.22 crore, while other current assets reached Rs 6,204.74 crore from Rs 5,278.11 crore. Other non-current assets increased to Rs 356.72 crore from Rs 7.96 crore.

Inventory rose to Rs 2,380.25 crore from Rs 2,288.36 crore, while capital work-in-progress increased to Rs 620.67 crore from Rs 586.11 crore. The investing cash-flow statement separately records a Rs 330.48 crore increase in capital advances and a Rs 38.52 crore increase in capital work-in-progress. These cash uses were partly offset by a Rs 454.03 crore decline in bank balances other than cash equivalents, helping investing activities produce an inflow of Rs 105.37 crore.

Cash and cash equivalents nevertheless increased by Rs 61.49 crore to Rs 166.88 crore at September 30, 2026. The closing amount comprised Rs 52.17 crore in current-account balances and Rs 114.71 crore in term deposits with original maturities of less than three months. Other bank balances, which are not classified as cash equivalents, declined to Rs 1,846.52 crore from Rs 2,300.55 crore.

How did Cochin Shipyard's earnings and segments change?

Cochin Shipyard's consolidated profit after tax declined to Rs 205.22 crore for the half year ended September 30, 2026 from Rs 295.36 crore a year earlier, despite revenue rising to Rs 2,493.06 crore from Rs 2,368.81 crore. Profit before tax fell to Rs 277.57 crore from Rs 399.45 crore, while finance cost increased to Rs 51.87 crore from Rs 32.31 crore. The operating cash deficit therefore coincided with lower reported profit as well as higher working-capital absorption.

Shipbuilding generated Rs 1,483.19 crore of half-year revenue, up from Rs 1,197.96 crore, but its profit before interest and tax, or PBIT, fell to Rs 57.81 crore from Rs 186.12 crore. Ship repair revenue declined to Rs 860.22 crore from Rs 989.23 crore and its PBIT declined to Rs 278.36 crore from Rs 345.44 crore. Total segment PBIT declined to Rs 329.44 crore from Rs 431.77 crore, while the unallocated segment reported a Rs 6.73 crore loss against a Rs 99.79 crore loss in the prior period.

Conclusion

Cochin Shipyard's September 2026 half-year accounts show cash being absorbed principally by working capital. A Rs 1,426.36 crore increase in trade, other receivables and assets, together with a Rs 93.50 crore inventory increase, produced a Rs 635.37 crore operating outflow even as financing activities added Rs 591.49 crore. Borrowings were Rs 684.73 crore higher than at March 31, 2026, while profit after tax declined by Rs 90.14 crore year on year.

The next disclosed matter to watch is the status of two 1,200-passenger vessels originally contracted by the Andaman and Nicobar Administration. At September 30, 2026, Cochin Shipyard reported completion of 54.84% for vessel SH.0023 and 55.19% for SH.0024, with discussions under way with the Andaman and Nicobar Administration and the Union Territory of Lakshadweep Administration on taking over the vessels subject to modifications. Cochin Shipyard said it will review accounting estimates and provisioning as more information becomes available.