SCI Shares Surge 14% on Stellar 436% Q3 Profit Growth

Introduction to SCI's Strong Quarter

Shipping Corporation of India (SCI) announced a robust financial performance for the third quarter of fiscal year 2026, leading to a significant rally in its stock price. The state-owned shipping major reported a consolidated net profit increase of 436%, which immediately boosted investor confidence. Following the announcement, the company's shares surged over 14% in early trading, reaching a new high and reflecting a strong market reception to the impressive earnings report and dividend declaration.

Detailed Financial Performance for Q3 FY26

The company's financial results for the quarter ending December 31, 2025, showcased substantial growth. Consolidated net profit soared to Rs 404.97 crore, a remarkable increase from the Rs 75.52 crore reported in the same quarter of the previous fiscal year. This growth was supported by a healthy rise in operational income. Revenue from operations for the quarter grew by 22.5% year-on-year, reaching Rs 1,611.67 crore. The profit before tax (PBT) also saw a significant jump, rising 409.89% to Rs 426.93 crore from Rs 83.73 crore in Q3 FY25.

Dividend Declaration for Shareholders

In addition to the strong earnings, SCI's board of directors approved a second interim dividend for the financial year 2025-26. The company declared a dividend of Rs 3.5 per equity share, which corresponds to 35% of the face value of Rs 10 per share. The record date for determining shareholder eligibility for this dividend has been set for February 17, 2026. The dividend payment is scheduled to be completed within 30 days from the date of declaration, providing a direct return to investors.

Market Reaction and Stock Performance

The market responded with strong optimism to SCI's Q3 results. The stock opened higher at Rs 249.40 and surged 14.11% to touch a fresh high of Rs 253 on the BSE, compared to its previous close of Rs 221.70. This rally pushed the company's market capitalization up to Rs 11,665 crore. The stock is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bullish trend. Over the past year, the share has delivered a return of approximately 30%.

Segment-wise Business Performance

The company's diversified operations contributed to its strong quarterly performance. The Tanker segment was the primary revenue driver, generating Rs 1,096.91 crore in Q3 FY26, a significant increase from Rs 817.05 crore in the corresponding quarter of the previous year. The Bulk Carrier segment also showed strong growth, with revenue rising to Rs 237.51 crore from Rs 146.86 crore. These gains helped offset a decline in the Liner segment, which saw revenue decrease to Rs 205.81 crore.

Corporate Developments and Outlook

Shipping Corporation of India continues to move forward with the strategic disinvestment process managed by the Department of Investment and Public Asset Management (DIPAM). The Virtual Data Room remains accessible for due diligence by qualified interested parties, indicating that the process is active. Furthermore, the company has completed the demerger of its non-core assets to Shipping Corporation of India Land and Assets Limited, a move aimed at streamlining its core shipping operations and unlocking value.

Key Financial Ratios

An analysis of SCI's key financial metrics provides further insight into its valuation and performance. The company's Price-to-Earnings (PE) ratio stands at approximately 10.06, which is competitive within its sector. The Price-to-Book (PB) ratio is 1.24, and the trailing twelve months (TTM) Earnings Per Share (EPS) is Rs 24.33. The dividend yield is around 2.69%, offering a reasonable income stream for investors.

Conclusion

Shipping Corporation of India's outstanding performance in the third quarter of FY26, marked by a significant increase in profitability and revenue, has been well-received by the market. The substantial dividend declaration further enhances its appeal to investors. As the company navigates its strategic disinvestment and continues to capitalize on strong performance in key segments like tankers, its stock remains a key focus in the logistics and shipping sector.