Cochin Shipyard signs ₹200 crore contract with ONGC for jack-up rig repairs

By Admin

18 Sep, 2025

Cochin Shipyard Ltd (CSL), one of India’s leading shipbuilding and maintenance companies, has added another major project to its portfolio. The company announced that it has signed a contract worth around ₹200 crore with Oil & Natural Gas Corporation (ONGC) for dry dock and major lay-up repairs of one of ONGC’s jack-up rigs. CSL stated in a stock exchange filing that the project is expected to be completed within 12 months, with promoters having no interest in the awarding entity.

Strengthening Industry Ties

The agreement marks another milestone in CSL’s long-standing relationship with India’s energy and maritime sectors. Jack-up rig repairs are critical to maintaining offshore exploration efficiency, and CSL’s expertise positions it as a reliable partner for ONGC. This contract adds to CSL’s strong project pipeline, which has seen multiple order wins in recent months.

Recent Order Wins

The ONGC deal comes on the back of a series of project wins for CSL. In July, the company secured an order from Polestar Maritime Ltd. for two 70-tonne Bollard Pull Tugs. This followed an earlier order for three similar vessels placed with Udupi Cochin Shipyard Ltd., CSL’s wholly owned subsidiary. These wins not only highlight CSL’s growing presence in the shipbuilding sector but also strengthen its revenue visibility for the coming quarters.

Financial Performance

On the financial front, CSL has delivered solid growth. For the quarter ended June 30, the company reported an 8% year-on-year increase in net profit, reaching ₹187.83 crore compared with ₹174.24 crore a year earlier. Revenue surged 38.5% to ₹1,068.59 crore, while operating income (EBITDA) rose 36% to ₹241.36 crore. However, the EBITDA margin contracted slightly to 22.6%.

CSL also rewarded its shareholders by declaring a final dividend of ₹2.25 per share last week.

Market Outlook

Analyst sentiment on CSL remains divided. According to Bloomberg data, of the three analysts tracking the stock, one has a ‘buy’ rating while two recommend ‘sell.’ The average 12-month price target of ₹1,504.67 suggests an upside potential of around 8.1%.

Conclusion

Cochin Shipyard’s ₹200 crore contract with ONGC reinforces its position as a trusted partner in India’s energy and maritime sectors. Coupled with recent order wins and strong financial results, CSL continues to expand its capabilities and presence in the industry. While analysts remain cautious, the company’s robust order book and operational growth point to steady long-term prospects.