Cochin Shipyard Ltd Management Discussions

Forward-Looking Statements

1. Statements in this Management Discussion and Analysis of financial condition and results of operations of the Company describing the Companys objectives, expectations or predictions may be forward-looking within the meaning of applicable securities laws and regulations. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Company assumes no responsibility to publicly amend, modify or revise forward-looking statements on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in these statements. Important factors that could influence the Companys operations include Governments strategy relating to acquisition of naval platforms, changes in government regulations, tax laws, economic developments within the country and such other factors globally. The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 and comply with the Accounting Standards specified under Section 133 of the said Act. The Company has used estimates and judgements relating to the financial statements on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner, the state of affairs for the year.

2. The following discussions on our financial condition and

results of operations should be read together with our audited financial statements and the notes to these statements included in the annual report.

Shipbuilding Industry

Global Shipbuilding Outlook

3. The global shipbuilding industry is entering a steady growth phase, with projections indicating the market could exceed US$262 billion by 2029. This growth is primarily driven by commercial vessels, which account for nearly

75% of total demand. This expansion is driven by a massive newbuilding boom, with current orderbooks reaching their third-highest levels in history. Regulatory pressures to reduce emissions are also a key driver of increased demand for newbuilds.

Key Industry Drivers

4. The key drivers propelling the shipbuilding growth include:

(i) Fleet Renewal (Primary Driver): A growing number of vessels are reaching the end of their service lives, creating strong demand for replacements;

(ii) Decarbonisation Mandates: International Maritime Organisation (IMO) regulations are forcing a shift toward green shipping. The industry is transitioning beyond compliance to performance-based sustainability. Nearly 50% of new vessel orders in 2025 were for dual-fuel ships (LNG, methanol or ammonia-ready). Decarbonisation and green transitions are major uncertainties shaping the industry. Increasing focus on alternative fuels such as methanol, LNG, hydrogen and ammonia. Energy efficiency technologies and solutions are becoming increasingly important;

(iii) Demand Growth and Trade Expansion: Despite uncertainties, seaborne trade is expected to grow, supporting long-term ship demand;

(iv) Fleet Modernisation: A significant portion of the global merchant fleet is ageing (over 15-20 years), necessitating replacements with more efficient, tech-heavy models;

(v) Naval Expansion: Rising geopolitical tensions are driving record-high defence spending. The U.S., for example, is investing roughly US$34-36 billion annually to modernise its naval fleet; and

(vi) Offshore Energy: The growth of offshore wind farms has created a surge in demand for specialised installation and service vessels.

Dominant Players and Market Share

5. The shipbuilding industry remains heavily concentrated in East Asia, which controls roughly 93% of global shipbuilding capacity, though capacity is now expanding to other regions as well.

(i) China: The undisputed leader with over 60% of the global commercial orderbook. It excels at cost-efficient production and has recently consolidated state-owned giants such as CSSC and CSIC to form the worlds largest shipbuilding group;

(ii) South Korea: Maintains a strong second position by specialising in high-value, complex vessels such as LNG carriers and mega-container ships;

(iii) Japan: Holds a significant share focused on high-quality, fuel-efficient bulk carriers and advanced ship designs; and

(iv) Emerging Challengers: Nations like India and Vietnam are aggressively seeking to capture market share. There is a structural shift in global competition, especially through the increasing capacity announcements from other regions such as India.

6. Newbuilding prices for bulkers, tankers and container carriers saw a modest increase in 2025. The Chinese Newbuilding Price Index (CNPI), produced by a panel of shipbuilders and shipbrokers, showed a marginal increase, upending the early indication of plateauing of demand. The booming container market played a key role in driving prices up, with second-hand vessel values also rising considerably.

Technology and Innovation Trends

7. The shipbuilding industry, like all others, is undergoing

major technological transformation. A few of these include:

(i) Energy Efficiency Tools: Systems like simulation-based platforms are used to optimise fuel consumption and emissions;

(ii) Alternative Fuel Ecosystem:

• Methanol-ready vessels gaining traction; and

• Growing bunkering infrastructure.

(iii) Smart Ships and AI Integration:

• Machine learning in engine rooms; and

• AI-based energy management systems.

(iv) Future Concepts:

• Thermal Energy Storage Systems (TESS);

• Solar-assisted propulsion; and

• Autonomous vessels.

Major Challenges and Risks

8. Shipyard costs have been steadily rising. Salaries are up, but the more significant factor has been price hikes

from suppliers, driven by inflation and higher demand. Despite the apparent boom in the market, shipyards

are still facing difficulties. Growing construction costs seem to be outpacing the rise in newbuilding prices,

leaving shipyards less satisfied than anticipated. A few contributory factors being:

(i) Cost Volatility: Fluctuating prices for steel, which accounts for up to 80% of a ships material, put severe pressure on yard profit margins;

(ii) Labour Shortages: Approximately 41% of shipyards globally report critical shortages of skilled workers like welders and naval architects; and

(iii) Geopolitical Instability: Trade wars, potential tariffs and conflicts disrupt supply chains and shift trade routes, creating uncertainty for long-term investments.

Shipbuilding in India

9. The shipbuilding industry in India is at a critical stage, influenced by shifting global maritime trends and a growing domestic focus on expansion. Traditionally, India has had a limited share in the global commercial shipbuilding market, with stronger involvement in specific segments. However, recent developments indicate a shift, with growing interest in expanding shipbuilding capacity and increasing participation in global markets.

10. Indias future position will depend on its ability to strengthen key factors such as capacity, investment, supply chain efficiency and overall competitiveness, as highlighted in global comparisons. With rising demand driven by fleet renewal and trade growth, India has the opportunity to enhance its role, though significant competition from established leaders remains.

11. Indias shipbuilding and shipping sectors are undergoing strategic transformation under the Government of Indias long-term maritime vision. Through the Maritime India Vision 2030 (MIV 2030) and Maritime Amrit Kaal Vision 2047 (MAKV 2047), the Government has set ambitious targets to elevate Indias position to the 10 th largest globally in ship owning and shipbuilding by 2030, and 5 th by 2047. These targets are supported by targeted policy interventions and infrastructure development programmes. A comprehensive package of RS.69,725 Crores has been approved by the Union Cabinet to revitalise Indias shipbuilding and maritime sector.

Budgetary Allocation towards shipbuilding industry

12. The budgetary support for the Ministry of Ports, Shipping and Waterways for the year 2026-27 in the Union Budget proposed RS.3,400 million, higher by 74.36% from the 2025-26 revised budgetary support. During the Union

Budget 2025-26, RS.1,950 million has been allocated to the shipbuilding industry, an increase of 30.65% from previous years budget. Additionally, the Government has announced RS.10,000 million Maritime Development Fund, a Shipbuilding Financial Assistance Scheme (SBFAS) with an outlay of RS.5,150 million and a RS.2,500 million for capacity and capability development and credit risk coverage for shipbuilding in India - Shipbuilding Development Scheme (SbDS). The SBFAS is designed to promote the domestic construction of large, green and specialised vessels and is expected to generate nearly H960 billion of shipbuilding activity, replacing the existing policy after March 2026. To improve industry participation, the scheme will be made more flexible, allowing shipyards to combine benefits with other central and state schemes, opt between old and new policies during the transition period and avail retrospective benefits for approved projects where applicable.

Government Support and Policy Initiatives for Indian Shipping Industry

Initiative / Policy	Description
Shipbuilding Financial Assistance Policy (SBFAP 2.0)	The Government of India has introduced the SBFAP 2.0 with a total outlay of RS.24,736 Crores to enhance the cost competitiveness of Indian shipyards. The policy provides financial assistance of 15 percent for vessels costing below RS.100 Crores, 20 percent for vessels above RS.100 Crores, and up to 25 percent for green or hybrid vessels that achieve at least 30 percent domestic value addition. It also includes a ship-breaking credit note scheme of RS.4,001 Crores to promote end-of-life recycling within Indian yards.
Maritime Development Fund (MDF)	The MDF, with a total corpus of RS.25,000 Crores, has been established to strengthen long-term financing for shipbuilding. It comprises a Maritime Investment Fund of RS.20,000 Crores and an Interest Incentivisation Fund of RS.5,000 Crores, which provides up to 3 percent interest subvention on loans extended to shipyards and shipping companies.
@ Shipbuilding Development Scheme (SDS)	The SDS provides RS.19,989 Crores to support greenfield and brownfield expansion of shipyards, along with risk-coverage and capability-building components. Out of this, H9,930 Crores is allocated for greenfield cluster capex, H8,261 Crores for brownfield modernisation, RS.1,443 Crores for risk coverage and RS.305 Crores for skill and capability development initiatives.
Infrastructure Status and Demand Aggregation	In September 2025, the Government accorded infrastructure status to large shipbuilding projects, enabling access to long-tenor, low-cost financing. At the same time, oil and gas public sector undertakings and the Shipping Corporation of India have aggregated demand for more than 112 vessels to be constructed domestically over the next decade, providing assured order visibility to Indian yards.

Outlook

13. Demand for shipbuilding in India is majoriy driven by defence, which is expected to continue and the defence shipbuilding order book is expected to grow by 8-9% over the coming years which is expected to boost the Indian shipbuilding industry. Recent government-ied shipbuilding and maritime reforms are expected to further support the growth of Indias shipbuilding sector. The measures focus on improving domestic capacity through financiai support, iong-term maritime financing and infrastructure development, aimed at reducing reliance on foreign-buiit vesseis and improving competitiveness. These reforms have the potential to boost the shipbuilding capacity to 4.5 million GT and enable shipbuilding output of up to 8.2 million GT, along with the addition of over 2,500 vessels by 2047. The reforms are also expected to drive investments of about RS.4.5 trillion, supporting sustained growth in both commercial and defence shipbuilding in India and are aligned with Indias objective of becoming the 10 th largest ship owning and shipbuilding nation by 2030 and the 5 th largest by 2047.

14. The conflict in West Asia has disrupted key shipping routes, particularly through the Red Sea and Suez Canai, forcing many vessels to take longer routes via the Cape of Good Hope. This increases sailing time and fuel consumption and reduces schedule reliability, tightening effective vessei avaiiabiiity and keeping freight and insurance costs elevated. For India, over 90% of Indias oii is transported on foreign ships, which increases exposure to such giobai disruptions. Against this backdrop, the Government has reiterated the strategic need to reduce dependence on foreign shipping and announced a H70,000 Crores campaign under the Make in India framework to buiid Indian ships and strengthen domestic capabilities across shipbuilding and allied services. Over the medium term, this policy push, along with defence-ied demand, can support incremental order visibility for domestic shipyards, particularly for fleet addition and replacement programmes aligned with selfreliance objectives.

Demand Aggregation

15. In order to provide clear visibility to Indian shipyards of future orders under the above, the Government has aggregated the total demand of vessels up to 2041-42.

Organisation / Programme	Vessel Planned	Gross Tonnage (GT)	Investment (J Crores)
Oil and Gas PSUs - Fleet acquisition plan	59 vessels	2.8 million	47,800
SCI - Long Term Plan (bulk carriers/ tankers/ offshore/ ore vessels)	216 vessels	10 million	1,00,000
SCI - Container Fleet	51 container vessels	~6 million	60,000

Initiative / Policy Public Procurement Preference and Right of First Refusal (RoFR)	Description The public procurement framework mandates that all government and PSU vessel orders valued up to RS.200 Crores must be placed with Indian shipyards. In addition, the revised RoFR policy gives priority to Indian-built, followed by Indian-flagged and Indian-owned vessels in all PSU and government tenders, thereby strengthening domestic shipbuilding demand.
Sagarmala Programme	The Sagarmala Programme, covering over 800 projects with a total investment of RS.5.8 trillion, focuses on port modernisation, ship repair, ship recycling and coastal connectivity. The second phase, Sagarmala 2.0, incorporates shipbuilding clusters and port-linked industrial infrastructure to reduce logistics costs and improve the coastal shipping ecosystem.
Maritime India Vision 2030 (MIV 2030)	The Maritime India Vision 2030 seeks to position India among the worlds top 10 ship owning and shipbuilding nations by 2030. It targets an annual addition of 4-5 million GT of shipbuilding capacity, increased port repair capability and a coastal shipping share of 12-15 percent of domestic freight movement.
Green Shipping and Technological Transition	Under the Green Tug Transition Programme (GTTP), every major port is required to induct at least two green tugs in the first phase, with five standard tug designs released for adoption. The Harit Sagar Guidelines (2023) aim to achieve 60 percent renewable-energy use and a 30 percent reduction in emission intensity by 2030 across Indian ports. The complementary Harit Nauka Guidelines promote the use of clean fuels for inland vessels, while the National Centre of Excellence for Green Ports and Shipping (NCoEGPS)\u2014set up jointly with TERI\u2014focuses on R&D and technical standards for green shipping.
Organisation / Programme		Vessel Planned	Gross Tonnage (GT)	Investment (J Crores)
Domestic Green Tug Programme		100 green tugs	-	12,000
Dredging Corporation of India - Fleet expansion		11 dredgers	-	3,775
Total		437 vessels	~19 million	2.2 Lakhs

Key Focus Sectors

16. Some key sectors focused by CSL which is in line

with the International market drivers coupled with

Indian demand are:

(i) Container Vessels: Globally the container vessel market remains resilient with a large number of vessels being ordered. In addition to construction of small feeder vessels for a European client, CSL bagged an order for constructing 6 feeder container vessels for the worlds third largest container carrier.

(ii) Short sea/ Coastal: The new generation vessels with alternate fuels and green technologies are indicating huge potential in the replacement market of ageing short sea European shipping segment. The Company was successful in bagging such projects with innovative technologies to meet the new regulations. Further, order intake is likely in the coming year as well.

(iii) Tugs and Port Crafts: The policy of the Ministry of Ports, Shipping and Waterways under ASTDS continued to show improved demand for the building of harbour tugs and the Company through its wholly owned subsidiaries viz., Udupi-CSL and Hooghly-CSL are actively working to bag many more orders. Further, with the new Green Tug Transition Programme (GTTP) on green tugs, the Company is ready to roll its green tugs meeting the GTTP guidelines which is likely to bring many more orders to the Company. CSL also bagged an order from a global tug operator to build 4 fully electric tugs (with option of 4 more).

(iv) Inland vessels: The Government is focussed on improving the port and inland water infrastructure. The Companys pilot project of a hydrogen fuel cell powered catamaran vessel is operationalised in Varanasi. Similar projects are under discussion and it is expected to generate good demand. The river cruise vessels are also generating a lot of enquiries. Hooghly-CSL has already got orders for two vessels. This sector is likely to generate keen interest.

(v) Renewables and Offshore Wind Segment: New

large offshore wind farm infrastructure in deep ocean is expanding and the demand for various types

of vessels to support the development, operations and maintenance of infrastructure for offshore wind farms such as Commissioning Service Operation Vessels (CSOV) and Service Operation Vessels (SOV) market, where CSL has established footprint, is likely to further enhance the order book on such projects.

(vi) Defence Shipbuilding: The Indian defence shipbuilding industry is well poised with huge outlay by the Government of India and CSL is very much involved in many of the future projects which are under discussions.

(vii) Large Merchant vessels: Even though CSL in the

past built merchant vessels for carrying liquid and bulk cargo, for the last 18 years, the Company could not make much inroads due to market conditions and stiff competition to offer large tonnage vessels meeting market expectations. However, with the new large dry dock coming into action coupled with the Government of India policy to promote large tonnage vessels demand aggregation for Indian build Indian owned vessels, CSL is sensing a good opportunity to enter this market and bring better value to the Company.

Ship Repair Industry

Global Ship Repair Industry: Market Dynamics

17. The ship repair industry is undergoing a significant shift as global trade routes evolve and environmental regulations become more stringent. India, strategically positioned along major international shipping lanes, is poised to transition from a marginal player to a global hub for ship Maintenance, Repair and Overhaul (MRO).

18. The global ship repair market is projected to cross approximately US$40 billion by 2030. The market is fuelled

by an ageing global commercial fleet and stringent IMO regulations regarding carbon emissions, necessitating retrofitting and life-extension repairs. There is an increasing demand for Green Ship conversions (LNG, ammonia, or hydrogen fuel systems) and digitalised maintenance, such as remote diagnostics and condition-based monitoring. Historically, China, Singapore and the Middle East (Dubai/ Qatar) have dominated the sector due to their massive drydock infrastructure and quick turnaround times.

The Indian Ship Repair Landscape

19. Indias ship repair sector has traditionally been undersized compared to its maritime potential, but it is currently in a high-growth phase. From a modest valuation in previous years, the sector is projected to grow many folds by 2033. Under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, the Indian Government aims to place the country in the Top 10 global shipbuilding and repair nations. India is currently working to overcome the shortage of Large dry docks capable of handling large commercial vessels to fill up the infrastructure gaps.

The Pivotal Role of CSL

20. As Indias largest and most modern shipbuilding and repair facility, CSL is the cornerstone of Indias maritime ambitions, with its capability to undertake repairs of vessels up to 2,25,000 DWT. It is the only shipyard in India with proven expertise in executing complex underwater repairs and maintenance of aircraft carriers. CSL has continued to strengthen its ship repair business through infrastructure expansion, strategic collaborations, pan India presence with strategically located facilities at Kochi Main Yard, ISRF (Willingdon Island-Kochi), CMSRU (Mumbai), CKSRU (Kolkata) and CANSRU (Sri Vijaya Puram) and diversification into high-value segments. CSL also plays a critical role in Atmanirbhar Bharat by providing life-cycle support for the Indian Navy and Coast Guard, ensuring fleet readiness without relying on foreign yards.

Capacity Augmentation and Infrastructure Development New Dry Dock (NDD)

21. The commissioning of the New Dry Dock (NDD) which is now fully operational has significantly enhanced CSLs ship repair capabilities, enabling entry into high-value mega-project and offshore segments such as Suezmax and Capesize vessels, LNG carriers and jack-up rigs. This capability is demonstrated by the recent ONGC contract for jack-up rig repairs. In addition, CSL has further strengthened its position in the defence segment through major refit projects of Indian Naval vessels, including MR & MLU, Re-engining project and RE Class refits, thereby demonstrating its capability to handle complex naval repair works alongside commercial and offshore projects.

International Ship Repair Facility (ISRF)

22. Commissioned in 2025, the ISRF is equipped with a state- of-the-art 6,000-tonne ship lift, six workstations, and a mobile transfer system. The facility is capable of handling vessels up to 130 meters in length and 6,000 tonnes displacement and significantly enhances CSLs overall ship repair capacity and improve operational efficiency enabling CSL to undertake repairs of around 82 additional vessels annually. During FY 2025-26, ISRF successfully executed around 35 refit projects, catering to a diverse mix of defence and commercial vessels.

23. This complementary arrangement allows the ISRF to handle smaller and medium-sized vessels efficiently, while the NDD is dedicated to high-value, large-scale and complex repair projects, thereby optimising throughput and maximising revenue potential for CSL.

Strategic Collaborations

24. CSL has taken significant steps towards ecosystem development and global integration. CSL signed an MoU in April 2025 and a Heads of Terms Agreement in October 2025 with Drydocks World (DP World group, Dubai) under the aegis of the Ministry of Ports, Shipping and Waterways to develop ship repair clusters and leverage global best practices.

25. In August 2025, CSL signed an MoU with Seatrium Offshore Technology (SOT), a subsidiary of Seatrium Limited, Singapore to strengthen collaboration in the offshore vessel repair/ conversion sector. The partnership intends to combine CSLs infrastructure and manpower capabilities with SOTs offshore engineering expertise to jointly pursue MRO projects across India.

26. An MoU was signed in September 2025 between Naval Dockyard Mumbai (WNC-IN) and CSL which would cater to docking, repairs and allied services of Indian Navy vessels under NDMb (WNC-IN) at CMSRU, Mumbai.

27. During India Maritime Week 2025, following MoUs were exchanged with various stakeholders, reinforcing CSLs strong position in the ship repair market.

• MoU with Deendayal Port Authority for developing ship repair ecosystem at Vadinar, Gujarat, including floating docks capable of handling approximately 40 large vessels annually. The project has been approved by the Cabinet Committee on Economic Affairs (CCEA) on May 05, 2026. The project is planned as a brownfield facility with a 650 metres jetty, two large floating dry docks, workshops and associated marine infrastructure with a combined investment of RS.1,570 Crores for repair of vessels up to 300 m length; and

• MoU with JSW Shipping for repairs of their fleets of vessels at CSL facilities.

28. These initiatives are expected to significantly augment national ship repair capacity and strengthen CSLs leadership position in the sector.

Business Diversification

29. CSL continues its effort to expand into new and high- value segments, including offshore fabrication and repair, vessel conversions and retrofits and defence and weapon platforms. This diversification strategy is aimed at enhancing revenue streams, improving margins and reducing dependence on conventional repair segments.

Ship Repair Clusters

30. The Government of India, through the Ministry of Ports, Shipping and Waterways (MoPSW), launched the Maritime India Vision (MIV) 2030 and the Maritime Amrit Kaal Vision (MAKV) 2047 to establish India as a leading maritime nation. Key initiatives include creation of ship repair clusters in India, to enhance operational efficiency, global standing and competitiveness in the maritime sector. CSL, under MoPSW, has been entrusted with the role of the nodal agency to develop Indias first two such clusters—one at Kochi, Kerala (centered around the International Ship Repair Facility (ISRF)), and a second proposed at Vadinar, Gujarat. The vision is to leverage Indias geographic positioning and CSLs existing infrastructure to attract global repair, maintenance and conversion business.

Outlook

31. With strong policy support under MIV 2030 and MAKV 2047, increasing maritime activity in the Indian ocean region and CSLs ongoing investments in infrastructure, partnerships and capability development, the Company is well positioned to capitalise on emerging opportunities in the ship repair sector. CSLs integrated approach—combining capacity expansion, ecosystem development and strategic diversification— positions it to play a pivotal role in transforming India into a global hub for ship repair and maintenance. The convergence of global fleet ageing and Indias aggressive policy framework has created a perfect storm for growth. Cochin Shipyard acts as the primary engine for this growth, transforming Kochi into a world-class maritime MRO destination that offers a competitive, high-tech alternative to traditional global hubs.

Operations

32. The total turnover of the Company is RS.4,307.69 Crores during the financial year 2025-26, as against the previous year of RS.4,527.84 Crores.

33. The shipbuilding income during the year is RS.2,651.39 Crores as against the previous year income of RS.2,663.27 Crores. During the year, CSL delivered two Hybrid Electric Catamaran Hull vessels to Kochi Metro Rail Limited (KMRL), two Anti-Submarine Warfare Shallow Water Crafts (ASW SWC) to the Indian Navy, one Multi-Purpose Vessel (MPV) to HS Service GMBH & Co. KG, Germany and one Hybrid Electric Catamaran Passenger Vessel to Inland Waterways Authority of India (IWAI).

34. The unexecuted order book of the Company as on March 31, 2026 stands at around RS.18,900 Crores, consisting of around 51 vessels with Defence order book at RS.12,150 Crores consisting of 12 vessels, Commercial (domestic) order book at H725 Crores consisting of 16 vessels and Commercial (export) order book at RS.6,025 Crores consisting of 23 vessels. Out of the total Commercial order book of RS.6,750 Crores, around 90% is export order and around 40% comprises of green vessels.

35. The ship repair income during the year is RS.1,656.30 Crores as against the previous year income of RS.1,864.57 Crores. CSLs Ship Repair Division, driven by a focused strategy of enhancing volumes, maximising asset utilisation and leveraging its multi-location presence across the subcontinent, significantly strengthened its regional accessibility and expanded its footprint in both domestic and international markets. During the financial year, the Division successfully executed over 100 refits through its five facilities spread across India, catering to a diverse portfolio of clients.

Financial Information

36. The financial information of the Company pertaining to the last decade is given below:

(Amount in H Crores unless otherwise stated)

Financial Year	Paid up capital	Nominal value of shares ( Rs. per share)	Capital employed	Networth	Profit Before Tax	Tax on Profits	Net Profit	EPS ( Rs.)	Dividend	Payout ratio
2025-26	131.54	5	6968.47	5,892.83	886.40	243.36	643.04	24.44	236.77	0.37
2024-25	131.54	5	5,549.91	5,610.65	1,133.85	290.94	842.91	32.04	256.50	0.30
2023-24	131.54	5	4,971.89	5,025.87	1,093.62	280.52	813.10	30.91	256.50	0.32
2022-23	131.54	10	4,480.05	4,423.42	448.51	114.02	334.49	25.43	223.62	0.67
2021-22	131.54	10	4,355.75	4,359.18	794.39	207.82	586.57	44.59	220.33	0.38
2020-21	131.54	10	3,964.27	3,977.57	810.59	200.49	610.10	46.38	203.89	0.33
2019-20	131.54	10	3,748.78	3,731.80	863.43	225.74	637.69	48.48	218.75	0.34
2018-19	131.54	10	3,327.72	3,332.08	751.38	270.20	481.18	35.72	171.00	0.35
2017-18	135.94	10	3,271.03	3,255.87	604.86	208.11	396.75	31.03	163.12	0.41
2016-17	113.28	10	2,062.02	2,028.58	493.40	171.85	321.55	28.39	101.61	0.32

Key Financial Ratios

Sl. . , Particulars No.	FY 2025-26	FY 2024-25	Change (in %) as compared to FY 2024-25	Detailed explanation for change of 25% or more
1. Debtors Turnover	12.44	13.30	-6	N.A.
2. Inventory Turnover	2.21	3.33	-34	Due to project specific materials and equipment held in stock for the vessels currently at various stages of construction and decrease in turnover.
3. Interest Coverage	11.66	32.11	-64	Due to decrease in profit and increase in finance costs on account of short term loans taken during the year.
4. Current Ratio	1.33	1.34	-1	N.A.
5. Debt Equity Ratio	0.17	0.00	4,100	Due to short term loans taken during the
				year.
6. Operating Profit Margin (%)	22.51	25.85	-13	N.A.
7. Net Profit Margin (%)	14.93	18.62	-20	N.A.
Return on Networth
Particulars	FY 2025-26	FY 2024-25	Change (in %) as compared to FY 2024-25	Detailed explanation for change
Return on Networth (%)	10.91	15.02	-27	Due to decrease in profit for the year.

Proposed/ Declared Dividend

37. As per Office Memorandum F.No.5/2/2016-Policy dated November 18, 2024 issued by the Department of Investment and Public Asset Management (DIPAM), every CPSE have to pay a minimum annual dividend of 30% of PAT or 4% of the networth, whichever is higher. Accordingly, your Directors are pleased to recommend a final dividend of RS.1.50 per share on the 26,30,80,780 fully paid equity shares of RS.5 each. Earlier, interim dividends of RS.4 and RS.3.50, aggregating to H7.50 per equity share had been paid to the shareholders during 2025-26. Thus, the total dividend for the year 2025-26 is H9 per equity share (180%), amounting to RS.236.77 Crores.

Segment-wise/ Product-wise Performance

38. The Company is engaged in two major activities viz., shipbuilding and repair of ships/ offshore rigs etc. Segment wise analysis has been made on the above basis and amounts allocated on a reasonable basis. The segment wise performance is given below:

(Rs. Crores)

Particulars	As at March 31, 2026	As at March 31, 2025
Segment Assets
Shipbuilding	9,81,929.73	8,22,323.58
Ship Repair	3,68,919.83	3,48,784.30
Unallocated	57,957.92	1,33,441.35
Total	14,08,807.48	13,04,549.23
Segment Liabilities
Shipbuilding	5,99,776.60	4,36,865.61
Ship Repair	40,339.61	1,01,917.29
Unallocated	1,79,408.43	2,04,701.13
Total	8,19,524.64	7,43,484.03

(Rs. Crores)

Particulars	As at March 31, 2026	As at March 31, 2025
Segment Revenue
Shipbuilding	2,65,138.62	2,66,326.95
Ship Repair	1,65,630.45	1,86,457.20
Unallocated	40,457.20	38,044.61
Total	4,71,226.27	4,90,828.76
Segment Result
Shipbuilding	47,536.79	43,421.67
Ship Repair	42,941.22	72,919.61
Unallocated	6,477.83	688.19
Total	96,955.84	1,17,029.47

39. The Company has two major business segments - Shipbuilding and Ship Repair. Revenue under Shipbuilding includes RS.1,58,820.82 Lakhs (previous year: RS.2,06,665.27 Lakhs) from two customers (previous year: two customers) having around 59.90% of the total Shipbuilding revenue and for Ship Repair includes RS.1,00,833.29 Lakhs (previous year: RS.1,53,005.55 Lakhs) from two customers (previous year: two customers) having around 60.88% of the total Ship Repair revenue.

SWOT

Strengths

(i) Diversified product portfolio in ship building and repair;

(ii) A very good product mix compatibility comprising of defence ships, commercial ships and offshore ships;

(iii) Highly trained, motivated and knowledgeable manpower with an average of 15 years of experience at all levels of hierarchy resulting in extremely high-quality workmanship;

(iv) State-of-the-art facilities with well-planned and laid out shipyard enabling smooth work flow and efficient production;

(v) Pan India presence with seven units spread across the country thus providing more flexibility to meet the market demands;

(vi) A modern state-of-the-art design centre manned by highly trained, experienced and competent naval architects/ engineers, draftsmen etc.;

(vii) Highly evolved shipbuilding processes and practices permitting modular construction of ships; and

(viii) Availability of quality sub-contractors and good supply chain network.

Weaknesses

(i) Virtually non-existent indigenous ancillary industries and consequently non-availability of major equipment/ raw materials in India;

(ii) Non-availability of standard designed products as a part of current product line;

(iii) Non-availability of visible domestic demand which makes company dependant on international market;

(iv) Higher finance and logistics costs resulting in higher input costs for production;

(v) Comparatively higher social and employee overheads being a public sector enterprise; and

(vi) Governmental system induced procedural delays.

Opportunities

(i) Projected increase in requirement of ships for the domestic commercial segment, owing to the Government of Indias policy towards demand aggregation and channelising it for Make in India policies;

(ii) Projected demand in the defence sector;

(iii) Geopolitical situations and India being seen as a favourable destination for the industry;

(iv) New generation vessels with green technology to meet new regulations for international and domestic markets;

(v) The lead position and preparedness of the Company to meet the demand from green tug market;

(vi) First mover advantage for introducing complete indigenous solutions for hydrogen fuel cell technology integration in vessel building in collaboration with Indian partners;

(vii) Strategic partnerships with global technology segments in maritime space;

(viii) Vessels to support offshore renewable and return of Oil and Gas industry;

(ix) Huge demand - supply gap for the repair of commercial and defence ships and virtually no competition in India; and

(x) Ageing global fleet, increased maritime trade and

stringent environmental regulations necessitating regular maintenance and retrofitting.

Threats

(i) Distress pricing policies of competitors;

(ii) Adverse reputational impact on the Indian shipbuilding industry due to under performance by Indian yards;

(iii) Rising cost of labour and materials;

(iv) Non-flexible government regulations on procurement policies delaying the product delivery timelines and cost;

(v) Difficulty to tap skilled manpower due to

migration of experienced workforce to booming international market; and

(vi) Adverse geopolitical situations and trade war uncertainties.

CRUISE 2030 20

40. Over the past few years, CSL has made significant strides under its long-term transformation initiative, CRUISE 2030 (CSL Revenue Unlock through Integrated Strategic Excellence). This programme laid a strong foundation for future growth through targeted expansion, modernisation and capability building. Notable achievements include the establishment and operationalisation of three new Ship Repair Units (SRUs) - CMSRU, CKSRU and CANSRU - and the operational strengthening of CSLs subsidiaries Hooghly-CSL and Udupi-CSL. Major investments were made in digital systems and infrastructure, including the implementation of SAP S/4HANA, integration of the Dassault 3DEXPERIENCE platform and deployment of state-of-the-art digital surveillance system. A dedicated Digital Centre of Excellence (DCoE) was also created to lead CSLs digital transformation across functions. Furthermore, CSL launched a third vertical - CSL Strategic & Advanced Solutions (C-SAS) - to tap into emerging technologies and deliver end-to-end maritime solutions.

41. Having largely achieved the objectives of the initial CRUISE 2030 roadmap, CSL initiated a strategic review to assess its current positioning and define the way forward in light of changing global maritime dynamics and new business opportunities. In October 2024, a Leadership Offsite was convened at Kumarakom, bringing together

senior executives and strategy consultants, BCG. The two- day conclave led to a collective vision of scaling CSL to a RS.12,000 Crores company by FY31. The discussions focused on identifying actionable priorities and strategic enablers to support this growth.

42. Based on these deliberations, CSL has now launched CRUISE 2030 20 (CRUISE 2030 raised to 2.0), a refreshed and forward-looking roadmap that builds on the foundation laid over the past few years. Key initiatives under CRUISE 2030 2.0 include the establishment of ship repair clusters at Kochi and Vadinar, investment in marine electrification technologies to enhance design capabilities, development of a ship block-making facility to support scale and efficiency and the exploration of strategic partnerships with European shipyards to access advanced markets. To ensure effective implementation, a CRUISE 2030 20 Strategic Review Team has been constituted at the highest level to track progress monthly, provide strategic oversight, recommend course corrections and periodically report to the Board. These initiatives are aligned with national maritime goals under MIV 2030 and MAKV 2047 and reflect CSLs ambition to emerge as a globally competitive, innovation-led leader in the maritime sector.

CSL Strategic & Advanced Solutions (C-SAS)

43. Expanding beyond our core Shipbuilding and Ship Repair portfolios, CSL has established a dedicated division named CSL Strategic & Advanced Solutions (C-SAS) to venture into the arena of strategic and knowledge-driven future technologies in the maritime sector. C-SAS has been actively engaged in identifying and developing sustainable and future-oriented business models. Some of the key initiatives undertaken by the C-SAS Division during the financial year 2025-26 are as follows:

• System Integration of Indias first fully Indigenous

High Endurance Autonomous Underwater Vehicle (HEAUV): C-SAS team successfully completed

integration and trials of three carriers. The carrier-3 was successfully tested for the vehicle dynamics in both surface and submerged condition through multiple runs with perfect performance of sonars and communication systems. Maiden sea trial of carrier-2 was successfully carried out. The indigenous development of the launch and recovery system is currently in progress.

• C-SAS is presently undertaking the development of the launch control station of the High Endurance Autonomous Underwater Vehicle (HEAUV), a fully integrated platform designed to manage

the command, control and communication operations of HEAUV.

• Digital Twin implementation for INS Vikrant (IAC):

C-SAS has undertaken the Digital Twin implementation onboard INS Vikrant (IAC) for the Indian Navy. The Digital Twin software was procured from M/s. GE Vernova and necessary interfacing software with gas turbine controllers from M/s. L3 Harris. The data servers, hardware equipment and interfacing solutions, onboard and shore office implementation were provided by C-SAS team. The implementation of Digital Twin onboard INS Vikrant was completed in March 2025 and the system successfully went live in April 2025.

• C-SAS is currently working on the development of a fully indigenous Autonomous Surface Vessel (ASV) pilot project by collaborating with Indian development partner firms. In addition to the vessel building aspects, the ASV pilot project also involves indigenous co-development of maritime autonomy and its associated critical subsystems/ technologies by CSL and the identified Indian strategic partner firms including start-ups. In this context, five contracts were awarded and the vessel including related subsystems is advancing progressively. IR class contract is also underway for the development and certification of indigenous ASV and its key subsystems/ technologies.

• C-SAS is jointly developing an advanced laser based fully automated welding process in collaboration with an Indian Technology partner. The automated welding system is capable of producing high quality welds at high welding speeds with minimum heat input. The indigenous laser development for the system is in advanced stages.

• C-SAS is developing an innovative sensor aided drydocking assistant solution which will improve the safety and accuracy during drydocking operations. The prototype testing of the same is successfully completed. Productising the technology is in progress.

ESG initiatives

44. CSL is integrating Environmental, Social and Governance (ESG) principles into its operations and decisionmaking processes, with a dedicated team overseeing implementation. The Company has a significant presence in green shipbuilding, with about 40% of its current

commercial order book comprising green vessels. In the recent past, CSL delivered zero-emission feeder container vessels to ASKO Maritime AS, Norway, 20 hybrid electric catamaran vessels for the Kochi Water Metro Project. It has also delivered three hybrid electric passenger vessels for the Inland Waterways Authority of India (IWAI). In addition, CSL has developed and delivered Indias first indigenous hydrogen-fuelled electric vessel as a pilot project, aligned with the National Green Hydrogen Mission. The vessel has been delivered to IWAI and is operational at Varanasi, supporting the adoption of cleaner marine fuels.

45. Over the years, CSL has implemented a wide range of proactive initiatives to reduce its carbon footprint and conserve natural resources, reinforcing its commitment to environmental sustainability. The Company has been awarded the GreenCo Gold rating by the Confederation of Indian Industry (CII). CSL has also engaged CII to assess its existing ESG framework, including gap assessment and double materiality assessment and to develop a detailed roadmap.

46. CSL continues to strengthen its environmental management practices and energy transition efforts. CSL is planning to expand the renewable energy capacity by way of rooftop solar installations in CSL from the existing 2,422 kWp to 4,000 kWp in a phased manner, expected to be completed by December 2028. As part of the green energy transition, it has been decided to implement a Battery Energy Storage System (BESS) in a phased manner. BESS will be charged through the purchase of low-cost renewable power from the Green Day Ahead Market (GDAM) and the surplus solar generation whenever available. The stored energy will be used during peak tariff periods. It is planned to complete the implementation of the first phase of BESS by December 2027. Upon commissioning of the project, CSL expects to meet approximately 60-70% of its energy requirements through green energy sources. The Company is also evaluating the use of Compressed Natural Gas (CNG) for metal cutting operations to reduce emissions and improve safety.

47. The Company has recently implemented ISO 50001:2018 Energy Management System (EnMS). The purpose of EnMS is to systemise energy management in CSL. Significant Energy Uses (SEUs) were identified after analysis of energy performance of CSL. Subsequently, energy performance indicators were identified and energy baseline was set for the SEUs. The measurement and monitoring plan set up as part of the system shall ensure prompt monitoring and control of the aforesaid parameters, thus contributing to improvement of energy performance of CSL.

48. In addition, CSL has implemented several smart energy management and automation measures aimed at improving energy efficiency and reducing operational costs. These initiatives leverage advanced technologies to monitor, control and optimise energy usage in real time. Key measures include:

(i) To monitor energy utilisation, an IoT-based remote energy monitoring system has been implemented, enabling real-time tracking and analytics for energy consumption/ generation;

(ii) In alignment with intelligent energy use, sensor- based lighting controls have been installed in critical areas like the ship building service tunnel, two nos. of substations and common areas. These systems automatically adjust lighting based on occupancy, ensuring energy is used only when necessary;

(iii) VRF (Variable Refrigerant Flow) air conditioning systems have been installed to optimise cooling energy consumption. Additionally, BLDC 5-star rated ceiling fans and man coolers have been introduced, improving energy efficiency while maintaining comfort standards;

(iv) Installation of Variable Frequency Drive (VFD) for Ballast Pump at repair dock resulted in enhanced overall efficiency and substantial energy savings. VFD also enables smooth start and stop of the motor, thus improving operational reliability;

(v) As part of the air-conditioning replacement plan, existing R-22 based air conditioners were replaced with energy-efficient systems using eco-friendly R-32 refrigerant. The replacement contributes to improved cooling performance, reduced power consumption and lower greenhouse gas emissions compared to conventional R-22 systems;

(vi) Significant upgrades also include the replacement of conventional light fittings with energy-efficient LED lights at various strategic locations such as building dock service tunnels and LLTT cranes; and

(vii) Power factor is closely monitored and maintained near unity to ensure optimal electrical performance and reduce wastage.

49. Further, CSL has implemented an innovative micro- algae-based Liquid Tree system to support carbon sequestration and environmental sustainability. The algae- based technology facilitates efficient absorption of CO2, production of oxygen and conversion of biomass into valuable resources such as food and poultry feed.

Risks and Concerns

50. The risks for the Company arise from the inherent nature of the shipbuilding industry. An indispensable portion

of the Companys revenue over the years is from the commercial shipbuilding which is highly cyclical in nature. The commercial shipbuilding industry prospects are dependent on world trade and the cyclicity of oil, natural gas, shipping, transportation and other trade related industries. The Yard, being located at coastal areas due to the inherent nature of the industry, may be affected by the rise in sea level due to change in climate conditions and global warming.

51. Substantial portion of the Companys activities involve the fabrication and refurbishment of large steel structures and its erection which would entail the operation of cranes and other heavy machinery and other operating hazards. The operational risks faced by the Company also could result in fires and explosions etc. Though the losses caused on such eventualities are covered under a standard fire and special perils policy, CSL do not have insurance for business interruption. These risks could expose the Company to substantial liability for personal injury, wrongful death, product liability, property damage, pollution and other environmental damages.

52. Another high risk area for the Company is the availability and price fluctuations of major raw materials. The major raw materials include steel (the grade and quality of which, in each project, depends on the applicable classification rules) and other materials, equipment and other components such as pumps, propellers and engines. In fiscals 2024, 2025 and 2026 respectively, the Companys material consumption costs constituted 56.87%, 52.50% and 48.10% of its total costs, respectively. In particular, bought out components accounted for around 93.17% of our total raw material cost in these recent fiscals.

53. Shortages in the supply of raw materials may result in an increase in the price of these raw materials. For example, there are supply-side constraints in relation to steel in India which we expect will continue in future. The Indian steel industry has been unable to compete globally due to which the GOI has imposed significant duties on the import of steel from other countries such as China to protect the domestic steel industry. This has adverse impacts when CSL is unable to source steel economically. In addition, the cost of certain raw materials, such as steel, aluminium, copper etc., may fluctuate in line with any changes in their global supply and demand and thus impacting the material cost.

54. In the event that the price of the Companys raw materials increases, the Company will not be able to pass these

price increases to its customers on its existing fixed contracts and its business, financial condition and results of operations can be adversely affected.

55. Changes in currency exchange rates may influence our results of operations. Globally, a substantial part of all worldwide ship sales transactions and purchase of offshore structures is generally conducted in USD and Euro. To mitigate this risk, the Company hedges the net forex exposure on the export receivables. However, in the case of import components in respect of shipbuilding/ ship repair contracts denominated in Rupee terms, CSL is exposed to exchange rate fluctuation risk unless the contract with the ship owner provides for an exchange variation reimbursement clause. Currently, some of the shipbuilding contracts do not contain such provision. Hence, adverse fluctuation in the currency rates will affect and influence our results of operations.

Product Diversification

56. CSL is undertaking product diversification efforts to align with emerging technologies and sustainability goals. As part of this, CSL designed and built Indias first fully indigenous

Hydrogen Fuel Cell Catamaran Vessel in collaboration with Indian partners with the assistance of the Ministry of Ports, Shipping and Waterways, supporting the National Green Hydrogen Mission. CSL secured international orders for

Hybrid Service Operation Vessels for offshore wind farm support in Europe, where sustainable energy solutions are in high demand. The Company also secured orders for building green tugs for domestic and international clients, reflecting the growing demand for environmentally sustainable maritime solutions and reinforcing its position in the evolving green shipbuilding segment.

57. In the autonomous space, CSL is developing the SWAYAT Autonomous Surface Vessel and a High Endurance Autonomous Underwater Vehicle to enhance capabilities in emerging maritime space. An advanced laser based fully automated welding system to enhance shipbuilding productivity and a sensor aided drydocking assistant solution are being indigenously developed. Further, through CSLs Start-up Engagement Framework USHUS, launched with an initial RS.50 Crores corpus, the Company aims to support maritime start-ups. So far, RS.12.50 Crores has been committed to 24 start-ups working in areas like deeptech, AI, renewable energy and eco-materials. The framework provides financial, technical and mentoring support, with Indian Institute of Management Kozhikode LIVE (IIMK LIVE) and Indian Institute of Technology Madras (IITM) serving as Review and Recommending Agencies for selection, monitoring and stakeholder coordination.

Internal Control

58. The Company has in place adequate internal control systems. The internal audit function is carried out by an independent firm of Chartered Accountants who carry out an in-depth review of internal control systems in critical areas based on the audit programme approved by the Board level Audit Committee headed by an Independent Director. Since there was no functional Audit Committee during the financial year 2025-26 due to non-appointment of sufficient number of Independent Directors by the Government of India, the audit programme was approved by the Board.

Human Resource Development and Industrial Relations

59. The details regarding Human Resource Development and Industrial Relations are more specifically covered in the Directors Report.

Women Empowerment

60. CSL has constituted Internal Complaints Committees, chaired by senior women executives, in accordance with the guidelines and norms prescribed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). The Certified Standing Orders applicable to workmen include sexual harassment as an act constituting misconduct. The Internal Complaints Committees are empowered to enquire into such complaints as per the procedure laid down in the Certified Standing Orders and Industrial Employment (Standing Orders) Acts and Rules.

61. CSL conducted an in-house awareness session on the Prevention of Sexual Harassment (POSH) at the workplace, reinforcing its zero-tolerance stance on gender bias and reaffirming its commitment to ensuring a safe, respectful and inclusive environment for women employees. Additionally, an online POSH awareness session was organised for employees across CSL units, extending the Companys commitment to workplace safety and sensitisation across all its establishments.

62. In alignment with the Swasth Nari Sashakt Parivar Abhiyaan launched by the Ministry of Health and Family Welfare and the Ministry of Women and Child Development, CSL organised a focused wellness session titled Your Menstrual Cycle Is Your Superpower exclusively for its women employees. The session underscored CSLs commitment to promoting menstrual health awareness and fostering a supportive and inclusive workplace environment.

63. CSL has enhanced its employee welfare framework by implementing Phase II of the Child Care Leave (CCL) Policy, effective from January 01, 2026. This updated policy, streamlines support for women employees and single parents to manage their childrens educational and medical needs while ensuring operational continuity. Key modifications include extending eligibility to single male parents with disabled children and introducing specific leave durations for upbringing, examinations and medical requirements based on the childs age. Under the revised guidelines, employees can avail up to 730 days of CCL during their entire service.

64. CSL conducted a comprehensive series of Mental Health Awareness sessions to promote the holistic well-being and work-life balance of its women employees. Led by a practicing clinical psychologist, the programme was delivered in age-specific multiple batches to ensure focused and effective engagement for women employees and trainees. The sessions addressed key areas such as anxiety, depression, role conflict and management of work- related stress, while also encouraging self-motivation and emotional resilience. Through these structured initiatives, CSL continues to reinforce its commitment to fostering a supportive, healthy and productive workplace for its women workforce.

65. CSL celebrated International Womens Day on March 09, 2026 with a well-curated half-day programme. The event featured an inaugural session led by the Chief Guest, followed by a talent showcase highlighting the skills and creativity of CSLs women workforce, as part of the celebrations.

66. Further, the Company ensures the participation of women in various forum including Joint Council, Shop Council, Central Safety Council, Shop Safety Council, Employees Contributory Provident Fund Trust, Cochin Shipyard Recreation Club, Cochin Shipyard Consumer Society, Cochin Shipyard Officers Welfare Centre etc.

Micro, Small and Medium Enterprises (MSME) as per the Public Procurement Policy 2012

67. CSL is making sustained efforts to enhance the procurement of goods and services from MSEs. For the financial year 2025-26, the Company has achieved a total indigenous procurement of 64.75% from MSEs, 0.81% from SC/ ST and 2.57% from women entrepreneurs against the MoU targets of 25%, 4% and 3% respectively. CSL could successfully contribute business opportunities to more than 15 SC/ ST entrepreneurs and 85 women entrepreneurs during the year. Efforts are being continued

to enhance the participation of SC/ ST and women MSEs, to meet the targets of 4% and 3% respectively.

68. During the financial year 2025-26, CSL has conducted various Vendor Development Programmes (VDPs) for MSEs including SC/ ST and women in association with MSME DFO, Thrissur, National Small Industries Corporation

(NSIC), Kochi and agencies like The Coimbatore District Small Scale Industries Association (CODISSIA), The Society of Indian Defence Manufacturers (SIDM), The Confederation of Indian Industry (CII), Kochi , The Kerala State Small Industries Association (KSSiA), Ernakulam, India Boat & Marine Show (IBMS), Kochi etc. The details of such programmes conducted and participated during 2025-26 are given below:

(i) 3 Days MSME Expo and B2B meetings conducted at Coimbatore during May 14 to 16, 2025, in association with CODISSIA, Coimbatore. Around 205 MSMEs including SC/ ST and women entrepreneurs visited CSL exhibition stall and had interactions with CSL officials on business opportunities in shipbuilding, ship repair and general requirements of CSL;

(ii) VDP and B2B meetings for the MSMEs of Kerala, conducted at Thrissur on August 28, 2025, in association with MSME Development and Facilitation Office, Thrissur. More than 150 MSMEs including SC/ ST and women owned firms attended the VDP session and interacted with CSL officials on business possibilities with CSL for ship building/ repair/ general material and service requirements of CSL.

(iii) CSL conducted a vendor awareness programme in the exclusive Regional Defence MSME conclave organised by The Society of Indian Defence Manufacturers (SIDM) and CII, Ernakulam at Hotel Le Meridien, Kochi on December 18, 2025. There was a participation of around 50 MSMEs including SC/ ST and women category. All Govt./ Defence/ Private shipyards as well as Armed Forces, DRDO etc. had attended the conclave and this was an opportunity to understand the good practices followed by the Defence organisations and the peer ship building industries as well.

(iv) CSL participated in the 3-days Industrial Expo IIIE 2026 and B2B meetings organised by The Kerala State Small Industries Association (KSSiA), Ernakulam under the guidance of Industries Department, Govt. of Kerala at Adlux Convention Centre, Angamaly, Ernakulam during January 16 to 18, 2026. More than 100 MSMEs visited CSL exhibition stall and few of them had detailed interactions with CSL team on business opportunities.

(v) In association with NSIC Kochi, CSL conducted vendor development programme for MSMEs during India Boat & Marine Show (IBMS) held at Kochi during January 29 to 31, 2026. There was significant participation and B2B meetings with many new suppliers for the smaller vessels/ boat segment.

69. Consequent to the VDPs and exposure visits, many suppliers have started participating in CSL GeM tenders. Around 15 new MSMEs on pan India basis have onboarded through CSLs online supplier registration portal and the application from 15 more firms are under final stages of enlistment.

70. Other initiatives include periodic updation of CSL website with MSME related information beneficial for the vendors, uploading of procurement data, payment data and other relevant information as per directives of the Ministry of Micro, Small & Medium Enterprises (MoMSME) in the MSME SAMBANDH and MSME SAMADHAAN portals etc. CSL is promoting payments through the TReDS platform and around 300 MSME vendors have already onboarded onto the TReDS portal and many are utilising the facility.

71. During the financial year 2025-26, CSL ensured prompt payment to MSEs within the stipulated timelines prescribed under the Micro, Small and Medium Enterprises (MSME) Development Act, 2006. No invoices from MSEs remained outstanding or were paid beyond the prescribed timelines during the year.

Other Information

72. The details regarding the Companys CSR activities, environment protection and conservation initiatives, technology absorption and upgradation efforts, forays into renewable energy, foreign exchange conservation etc., are provided in the Directors Report and the Annexure thereon.

Cautionary statement

73. Statement in this Management Discussion and Analysis Report describing the objectives, expectations, assumptions or predictions of the Company may be forwardlooking statements within the meaning of applicable rules and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the operations of the Company i nclud e economi c cond itions a ffecting demand / supply, price conditions in the domestic and international markets, Government policies and regulations, statutes and other incidental factors.

	For and on behalf of the Board of Directors
	Jose V J
Kochi	Director (Finance) & CMD (Addl. Charge)
May 15, 2026	DIN: 08444440