Cochin Shipyard Secures ₹200 Crore ONGC Jack-up Rig Maintenance Work; Stock Increases as Order Momentum Builds

Kochi, 17 September 2025: Cochin Shipyard Limited (NSE: COCHINSHIP, BSE: 540678) has entered into a contract with ONGC for dry dock major lay-up repair of one of the ONGC jack-up rigs for about ₹200 crores to be executed over a period of about 12 months. The company informed that the order does not involve any related-party transactions and has formally announced the award to the stock exchanges.

Order Details and Execution

The contract requires Cochin Shipyard to carry out major refurbishment, maintenance and major lay-up repair of one jack-up drilling rig according to ONGC’s rig repair and readiness specification. The project schedule is around 12 months from the date of commencement and is to be scheduled according to ONGC and Cochin Shipyard’s work order process. Cochin Shipyard, with its long history of ship repair and marine engineering, will employ its dry-dock, engineering, and repair capacity for this high-ticket project.

Stock Performance and Recent Developments

The stock of Cochin Shipyard has reacted positively to the contract win, as part of a broader rally in defence and shipbuilding shares. The stock was trading at around ₹1,890.50, above its previous close, with gains of nearly 3.7-4%. The stock is well placed within its 52-week range of ₹1,180.20 (low) to ₹2,545.00 (high). Its previous day’s trading had a price range between ₹1,820.10 and ₹1,923.80. The company’s trailing P/E is high at around 56.5 plus, indicating premium valuation and optimism by investors.  For the June 2025 quarter, earnings per share (EPS) stood at about ₹31.96, while on September 12, 2025, the firm announced a dividend of ₹2.25 per share.

Wider Industrial Context

This ONGC rig repair contract further reinforces Cochin Shipyard’s credentials in the energy sector and positions itself in offshore assets servicing and maintenance—a sector of growing importance as India attempts to develop its oil & gas infrastructure and offshore exploration.  The company’s order book is already supported by projects such as tug builds and defence ship contracts. Investor sentiment has also been buoyed by expectations of major defence-sector deals, including fighter aircraft projects, alongside new policy incentives aimed at boosting maritime infrastructure.

REF: https://nsearchives.nseindia.com/corporate/Aswi4739_17092025161958_SE_Intimation_sd.pdf

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