Cochin Shipyard shares in focus as defence PSU signs contract for 6 container vessels

Cochin Shipyard Ltd shares are in focus on Thursday morning, as the formal contract for construction of six feeder container vessels, each with a capacity of 1,700 TEU, has been signed between the defence PSU and CMA CGM of France. The order is categorised as a mega order, as per Cochin Shipyard’s order classification criteria, which means a size above Rs 2,000 crore. As per the contract, the first vessel is to be delivered in 36 months and the last vessel is to be delivered within 64 months. The vessels will be powered by liquefied natural gas (LNG), Cochin Shipyard said. The defence PSU had earlier signed the Letter of Intent (LOI) with the European client in October 2025. 

On February 16, the Cochin Shipyard said the Ministry of Defence, has declared the defence PSU as L1 in the tender for construction of five Next Generation Survey Vessels (NGSV) for the Indian Navy. The estimated total order value is around Rs 5,000 crore.

Earlier on January 30, Cochin Shipyard said it bagged a notable order from Polestar Maritime Limited, for the construction of two Green Tugs of 60 T Bollard Pull Power under the Green Tug Transition Programme (GTTP) of the Ministry of Ports, Shipping and Waterways, Government of India. The Tugs are scheduled to be delivered in August, 2027 and September, 2027 respectively. 

To recall, total capital expenditure for defence was raised 18 per cent to Rs 2.2 lakh for FY27 in the Union Budget. Segment-wise, allocation for aircraft and aero engines declined 12 per cent YoY, likely due to a rise in imports of Rafale M, MQ9B drones and MH-60R helicopters, while allocation to construction increased 24 per cent YoY, to heavy vehicles 24 per cent YoY, Naval fleet 17 per cent YoY, and other equipment 62 per cent YoY. The government has also announced a range of incentives
for shipbuilding, ship repair, and civil aviation, including a reduction in basic customs duty on imported aircraft parts for MRO, to promote domestic manufacturing clusters and boost exports. 

On February 12, the Defense Acquisition Council (DAC) approved
defense procurement proposals worth Rs 3.6 lakh crore, led by the Indian Air Force, which accounted for nearly 90 per cent of the outlay (Rs 3.2 lakh crore) through the approval of 114 Rafale fighter jets. The approvals also covered smaller but strategic acquisitions across other services.