Cochin Shipyard secured a fresh order from Polestar Maritime to build two 70-tonne tugs, reinforcing India's defence and maritime capabilities. The project aligns with the Atma Nirbhar Bharat vision and expands CSL’s growing portfolio of indigenous tug construction.
Defence upcycle has become the latest market buzzword amid rising global tensions and shifting security dynamics. As nations reassess their strategic priorities, countries like India and those across Europe are ramping up defence spending. In India, defence stocks were already drawing investor attention, but following the successful execution of Operation Sindoor, these battle-proven stocks are witnessing renewed momentum.
Cochin Shipyard share price edged higher on Monday, June 30, following the company’s receipt of an order from Polestar Maritime to build two 70-tonne bollard pull tugs. As of 10:25 am IST, the share price of the company was trading at ₹2,053.40, up by 0.45%. Details of the order are as follows:
Cochin Shipyard Limited (CSL) has announced a notable (ranging from ₹100 to 250 crore) new order from Polestar Maritime Limited for the construction of two 70-tonne Bollard Pull Tugs. These vessels are slated for delivery in May 2027 and September 2027, respectively. This recent contract follows a previous agreement for three similar tugs with Udupi Cochin Shipyard Limited (Udupi-CSL), a fully-owned subsidiary of CSL. Polestar Maritime Limited holds a prominent position in the specialised market of harbor tugs, coastal towing, and marine services at various ports.
The design for these tugs will be provided by Robert Allan Limited, a globally recognised leader in harbor tug design. CSL and Udupi-CSL have been instrumental in introducing Robert Allan Tugs in India, ensuring compliance with the Approved Standard Tug Design and Specifications (ASTDS) issued by the Government of India, aligning with the "Atma Nirbhar Bharat" initiative.
Both shipyards have set high standards for the timely delivery and quality of tugs built in India, with Udupi-CSL leading the initial projects under this program. The construction will be a joint effort between CSL and Udupi-CSL, operating under a work-share agreement at CSL's facility in Cochin. Each tug will be equipped with two main engines, each boasting 1838 kW of power, and 2.7-meter propellers supplied by Niigata IHI Power Systems Co., Ltd. of Japan.
The CSL Group has already delivered four tugs as part of the "Make in India" initiative. With the addition of this new contract, their current order book includes 18 tugs and 2 green tugs, all in various stages of construction. Mr. Madhu Nair, Chairman and Managing Director of CSL, expressed his pleasure with the repeat order from Polestar and reaffirmed CSL's dedication to transforming the industry through the introduction of Battery Electric Tugs, aligning with the upcoming Green Tug Transition Programme (GTTP) announced by the Government of India.
For the quarter ended March 2025, Cochin Shipyard reported a 36.67% year-on-year increase in consolidated revenue from operations, reaching ₹1,757.65 crore compared to ₹1,286.05 crore in the same quarter last year. Net profit for the quarter stood at ₹287.19 crore, reflecting a 10.93% rise from ₹258.88 crore reported in March 2024.
On an annual basis, revenue from operations rose by 25.83%, climbing to ₹4,819.96 crore in FY25 from ₹3,830.45 crore in FY24. Net profit for the full year showed a growth of 5.62%, increasing from ₹783.28 crore to ₹827.33 crore over the same period.
Looking at the stock performance, the stock price of Cochin Shipyard has jumped over 45% in the last three months, while on a year-to-date basis it is up by around 31%. In the last 12 months, the stock has recorded a decline of 8.6%.
Cochin Shipyard Limited operates as a public sector undertaking under the Ministry of Shipping, Government of India. The company is primarily involved in shipbuilding and ship repair activities. It caters to both defence and commercial sectors, constructing various types of vessels including tankers, bulk carriers, passenger vessels, and offshore patrol vessels. Additionally, CSL offers comprehensive repair and maintenance services for a wide range of vessels.
Disclaimer: The article is for informational purposes only and not investment advice.
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