Shipping Corporation Shares Plunge After Profit Drop
Shares of the Shipping Corporation of India (SCI) fell sharply by 7.3% to a low of Rs 247.25 on the Bombay Stock Exchange (BSE) on November 10, following the release of disappointing financial results for the quarter ending September 30, 2025. The company reported a significant 39% decline in net profit, alongside a decrease in operating revenue, raising concerns among investors about its financial health.
Financial Performance Highlights
In its latest earnings report, SCI revealed that its net profit dropped to Rs 176 crore, down from Rs 290 crore in the same quarter last year. This decline reflects ongoing challenges in the shipping sector. The company’s operating revenue also fell by approximately 8% year-over-year, totaling Rs 1,339 crore compared to Rs 1,451 crore in the previous year. The earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter stood at Rs 504 crore, marking a 13% decrease from Rs 574 crore reported in the corresponding quarter of the previous financial year.
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For the first half of the financial year, SCI’s total revenue reached Rs 2,654 crore, a decline of 10.4% from Rs 2,965 crore in the same period last year. The net profit for this period also fell by 10%, dropping to Rs 519 crore from Rs 577 crore in the first half of the previous financial year. Despite these challenges, SCI declared an interim dividend of Rs 3 per share for FY26, with November 19 set as the record date for shareholders.
Segment Performance Overview
During the second quarter of FY26, SCI’s business segments exhibited mixed results. The Liner segment generated revenue of Rs 213 crore, an increase from Rs 201 crore in the previous quarter but lower than the Rs 298 crore reported in Q2FY25. The Bulk Carrier segment showed promising sequential growth, with revenue rising to Rs 201 crore from Rs 133 crore in the previous quarter, although it fell short of the Rs 214 crore recorded in the same period last year.
The Tanker segment reported revenues of Rs 858 crore, slightly down from Rs 913 crore in Q1FY26 and Rs 885 crore in Q2FY25. Conversely, the Technical & Offshore segment maintained steady growth, achieving Rs 74 crore in revenue, up from Rs 72 crore in the previous quarter and Rs 70 crore in Q2FY25. Despite the recent downturn in share prices, SCI’s stock has shown resilience over the past six months, delivering a remarkable 57% return, significantly outperforming the Nifty and BSE Sensex indices.
