Shares of Cochin Shipyard dropped as much as 7.5% to an intraday low of Rs 1,475 on the BSE on Monday after the company reported mixed March quarter results on May 15. While both revenue and net profit declined on a yearly basis, the company posted a sharp improvement in operating margins driven by better operational efficiency.Net profit for Q4FY26 stood at Rs 276.50 crore against Rs 287 crore reported in the same quarter last year, marking a decline of 3.7%. Revenue from operations fell 15.6% year-on-year to Rs 1,484.3 crore from Rs 1,757.7 crore in the corresponding period a year ago.Despite weaker revenue, the company delivered a strong operating performance during the quarter. EBITDA rose 16.5% to Rs 310 crore from Rs 266 crore in Q4FY25, while EBITDA margin expanded significantly to 20.9% from 15.1% a year earlier. The improvement in margins reflected tighter cost controls and improved operational efficiency, which helped support overall profitability despite the decline in topline growth.The board of directors also recommended a final dividend of Rs 1.5 per equity share with a face value of Rs 5 each for FY26. The company said the dividend, subject to shareholder approval at the upcoming Annual General Meeting, will be paid within 30 days from the date of declaration at the AGM.Cochin Shipyard, a Government of India enterprise headquartered in Kochi, Kerala, is the country’s largest shipbuilding and ship repair facility. The company builds technologically advanced commercial ships and warships. It also provides repair, refit and life-extension services to maritime customers globally.The stock has declined around 14% over the last six months and is down nearly 8% so far this year. On a one-year basis, the shares have fallen about 25%. However, over five years, the stock has delivered multibagger returns of nearly 670%. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)