SCI Shares Surge 14% After Q3 Net Profit Jumps 436%

Introduction

Shares of the state-owned Shipping Corporation of India (SCI) experienced a significant rally on Monday, February 9, 2026, climbing as much as 14% to an intraday high of Rs 253 on the BSE. This surge in investor confidence came in response to the company's outstanding financial performance for the third quarter of the fiscal year 2026, which was announced late on Friday, February 6. The results highlighted a massive increase in profitability, driven by both revenue growth and effective cost management.

Stellar Quarterly Performance

For the quarter ending December 31, 2025, Shipping Corporation of India reported a consolidated net profit of Rs 404.97 crore. This represents an extraordinary year-on-year increase of 436% from the profit recorded in the same quarter of the previous fiscal year. The company's profit before tax (PBT) also saw a substantial rise, standing at Rs 426.93 crore, up 409.89% from Rs 83.73 crore in Q3 FY25. This robust bottom-line growth underscores a period of strong operational performance and financial health for the public-sector enterprise.

Revenue Growth and Segmental Analysis

The company's revenue from operations for the October-December 2025 period grew by a healthy 22.5% year-on-year, reaching Rs 1,611.67 crore. A closer look at the segmental performance reveals a mixed but overall positive picture. The tanker segment was the primary growth driver, with revenues climbing 34.25% to Rs 1,096.91 crore. The bulk carrier segment also performed exceptionally well, posting a 61.73% increase in revenue to Rs 237.51 crore. Additionally, the technical and offshore services segment grew by 24.56% to Rs 79.36 crore. However, the liner segment witnessed a decline, with revenue falling 26.78% to Rs 205.81 crore.

Operational Efficiency and Cost Control

A key factor contributing to the surge in profitability was the company's effective management of expenses. Total expenses for Q3 FY26 declined by 1.88% year-on-year to Rs 1,253.28 crore. This reduction was achieved through disciplined cost control across several key areas. The cost of services rendered decreased by 3.99% to Rs 728.80 crore. Furthermore, employee benefit expenses were down 5.43% to Rs 154.15 crore, and finance costs saw a significant drop of 24.3% to Rs 48.39 crore. This ability to grow revenue while simultaneously reducing costs was instrumental in expanding the company's profit margins.

Financial Health Summary

Turnaround from Previous Quarter

The strong performance in the third quarter marks a significant turnaround from the preceding quarter (Q2 FY26). In the quarter ended September 30, 2025, SCI had reported a 35.09% decrease in consolidated net profit to Rs 189.16 crore, with revenue declining by 7.71% to Rs 1,338.87 crore. The robust results in Q3 demonstrate a sharp recovery and a return to a strong growth trajectory, which has been positively received by the market.

Dividend for Shareholders

In addition to the strong earnings report, the company's board of directors approved a second interim dividend for the financial year 2026. Shareholders are set to receive a dividend of Rs 3.5 per equity share, which corresponds to 35% of the face value. The company has fixed February 17, 2026, as the record date for determining shareholder eligibility. The dividend is scheduled to be paid to eligible shareholders within 30 days of its declaration.

Conclusion

Shipping Corporation of India's remarkable third-quarter results, characterized by a massive surge in net profit and solid revenue growth, have provided a strong catalyst for its stock. The performance was driven by strong contributions from its tanker and bulk carrier segments, coupled with disciplined cost-cutting measures. The subsequent 14% rally in its share price reflects strong investor optimism about the company's operational strength and future prospects, further bolstered by the announcement of a shareholder dividend.