Cochin Shipyard and 4 other stocks to benefit after Govt. to invest ₹44,700 Cr in shipbuilding sector

Synopsis: The Ministry of Ports, Shipping & Waterways launched SBFAS and SbDS with a combined investment of Rs 44,700 crore. These schemes provide a 15- 25 percent financial assistance per vessel, along with a shipbreaking credit note of 40 percent of the scrap value.

The Government of India’s Ministry of Ports, Shipping & Waterways announced operational guidelines for two major shipbuilding initiatives with a combined investment of Rs 44,700 crore, aimed at strengthening domestic shipbuilding capacity and improving global competitiveness. 

Under the Shipbuilding Financial Assistance Scheme’s (SBFAS) Rs 24,736 crore corpus, a financial support of 15- 25 percent per vessel will be provided along with graded incentives for different vessel types and a Shipbreaking Credit Note that would be worth 40 percent of scrap value, in order to link recycling with new construction that is supported by a National Shipbuilding Mission. 

SBFAS is expected to bring in about Rs 96,000 crore in shipbuilding projects, which would enhance manufacturing and even create jobs. The Shipbuilding Development Scheme (SbDS) has Rs 19,989 crore in budgetary outlay, and is focused on greenfield clusters, brownfield upgrades, and establishing an India Ship Technology Centre that would boost research and skills. 

Both these schemes would continue until March 31, 2036, with a possible extension to 2047, as the shipbuilding capacity is projected to surge and be around 4.5 million gross tonnage annually by 2047.

The following are the list of stocks that could benefit from the all new SBFAS and SbDS schemes. 

Shipping Corporation of India Ltd

Established in 1961 and headquartered in Mumbai, the Shipping Corporation of India (SCI) is a leading maritime company that is engaged in the transportation of goods and passengers. SCI operates a diversified fleet across bulk carriers, tankers, container vessels, LNG carriers, offshore supply vessels, and passenger services

In the latest quarter the company saw its YoY revenue fall by 7.7 percent, going from Rs 1,451 Cr in Q2FY25 to Rs 1,339 Cr in Q2FY26, while the QoQ went up by 1.7 percent from Rs 1,316 Cr in Q1FY26. The YoY Net Profits fell by 35 percent, going from Rs 291 Cr in Q2FY25 to Rs 189 Cr in Q2FY26, while the QoQ fell by 46 percent from Rs 354 Cr in Q1FY26.

Mazagon Dock Shipbuilders Ltd

Mazagon Dock Shipbuilders Limited (MDL), is based in Mumbai and was established in 1774. It is one of India’s leading shipyards. MDL has built over 801 vessels since 1960, including warships, submarines, cargo & passenger ships, and offshore platforms, therefore the company plays a vital role in India’s defence and maritime shipbuilding sector.

In the latest quarter the company saw a YoY revenue growth of 6.2 percent, going from Rs 2,757 Cr in Q2FY25 to Rs 2,929 Cr in Q2FY26, while the QoQ went up by 11.5 percent from Rs 2,626 Cr in Q1FY26. The YoY Net Profits growth is at 28 percent, going from Rs 585 Cr in Q2FY25 to Rs 749 Cr in Q2FY26, while the QoQ growth stood at 65 percent from Rs 452 Cr in Q1FY26. As of the Q2FY26 the company’s order book stands at Rs 27,415 Crore.

Great Eastern Shipping Company

Great Eastern Shipping Company Ltd and its subsidiaries, are major players in the country’s shipping and offshore oil drilling services industry. Incorporated in 1948 and headquartered in Mumbai, the company operates a diversified fleet which includes- tankers, dry bulk carriers, and offshore vessels, playing a vital role in maritime trade and energy logistics.

In the latest quarter the company saw its YoY revenue fall by 8.2 percent, going from Rs 1,354 Cr in Q2FY25 to Rs 1,242 Cr in Q2FY26, while the QoQ went up by 3.4 percent from Rs 1,201 Cr in Q1FY26. The YoY Net Profits growth is at 0.8 percent, going from Rs 576 Cr in Q2FY25 to Rs 581 Cr in Q2FY26, while the QoQ growth stood at 15 percent from Rs 504 Cr in Q1FY26. 

Cochin Shipyard Limited

Incorporated in 1972, Cochin Shipyard Limited (CSL) is a leading player in the construction, repair, and refit of all types of vessels, this even includes periodic upgrades and life extension of ships. The company is headquartered in Kochi, Kerala, and plays a key role in India’s shipbuilding and maritime infrastructure sector.

In the latest quarter the company saw its YoY revenue fall by 13.3 percent, going from Rs 1,097 Cr in Q2FY25 to Rs 951 Cr in Q2FY26, while the QoQ fell by 2.6 percent from Rs 977 Cr in Q1FY26. The YoY Net Profits fell by 47 percent, going from Rs 193 Cr in Q2FY25 to Rs 101 Cr in Q2FY26, while the QoQ fell by 46 percent from Rs 188 Cr in Q1FY26. As of the latest quarter the company’s order book stands at Rs 21,100 Crore.

Garden Reach Shipbuilders & Engineers Ltd

Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a premier Indian shipbuilding company operating under the administrative control of the Ministry of Defence, Government of India. The company primarily caters to the shipbuilding and engineering requirements of the Indian Navy and the Indian Coast Guard.

In the latest quarter the company saw a 45 percent YoY revenue growth, from Rs 1,153 Cr in Q2FY25 to Rs 1,677 Cr in Q2FY26. Moreover, the company made a profit of Rs 98 Cr in Q2FY25 which grew to Rs 154 Crore in Q2FY26, showing a 57 percent growth. The company’s order book stands at Rs 20,205 crore, as of Q2FY26.

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