Cochin Shipyard Bags ₹200 Crore ONGC Contract

22 Sep 2025 , 11:03 AM

Cochin Shipyard Limited (CSL) has signed a ₹200 crore contract with Oil and Natural Gas Corporation Ltd (ONGC) for the dry docking and major lay-up repairs of one of ONGC’s jack-up rigs. The work is expected to be completed within 12 months, the company said on Wednesday.

CSL clarified that the agreement is a purely commercial contract, not a related-party transaction, and that its promoter group has no interest in ONGC.

Quarterly Performance

The announcement comes on the heels of CSL’s first-quarter results declared last month. For the quarter ended June 2025, the shipbuilder reported a 7.9% year-on-year rise in net profit at ₹187.8 crore. This is compared with ₹174 crore in the same quarter last year.

Revenue for the period surged 38.5% to ₹1,068 crore against ₹771.5 crore in Q1FY25. This is driven by strong execution. EBITDA rose 35.7% to ₹241.3 crore from ₹177.8 crore a year earlier. Margins, however, eased slightly to 22.5%, down 50 basis points from 23%.

The ONGC order further strengthens CSL’s position in the offshore repair and maintenance segment, complementing its core shipbuilding and defence contracts. Following the news, Cochin Shipyard shares have gained 1.91% trading at ₹1937.20 at 11:02 am on September 22, 2025.

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