Shipping Corporation Reports Significant Profit Decline
The Shipping Corporation of India Limited (SCI) has announced a substantial 35% drop in its consolidated net profit for the second quarter of FY26, totaling ₹189 crore. This decline marks a decrease from ₹291 crore during the same period last year and a staggering 47% drop from ₹354 crore in the previous quarter. Despite a slight easing in expenses, the company’s revenue from operations has also seen a downturn.
Financial Overview and Revenue Breakdown
For the quarter ending September 2025, SCI reported revenue from operations of ₹1,339 crore, reflecting an 8% decrease from ₹1,451 crore a year earlier. Compared to the previous quarter’s revenue of ₹1,316 crore, the figures remained relatively stable. Total income for the quarter was recorded at ₹1,436 crore, down from ₹1,491 crore in Q2 FY25.
Expenses for the company decreased by 3% year-on-year, amounting to ₹1,236 crore, primarily due to reduced service and operating costs. The tanker segment emerged as the strongest performer, generating ₹858 crore in revenue. Other segments included bulk carriers at ₹201 crore, liner operations at ₹213 crore, and technical and offshore services contributing ₹74 crore.
In light of these financial results, the board of directors has declared an interim dividend of ₹3 per share for FY26, with a record date set for November 19, 2025. The total dividend payout is expected to be around ₹140 crore, providing some return to shareholders amidst the challenging financial landscape.
Market Reactions and Future Outlook
The significant profit decline has raised concerns among investors and market analysts regarding the future performance of SCI. The shipping industry has faced various challenges, including fluctuating demand and operational costs, which have impacted profitability. As the company navigates these hurdles, stakeholders will be closely monitoring its strategic responses and operational adjustments.
The upcoming dividend declaration may offer some reassurance to investors, but the overall market sentiment remains cautious. Analysts suggest that SCI will need to enhance its operational efficiency and explore new revenue streams to recover from this downturn. The company’s ability to adapt to changing market conditions will be crucial in determining its financial trajectory in the coming quarters.
