Shipping Corp shares surge 14% as Q3 profit jumps over fourfold

Shares of Shipping Corporation of India climbed as much as 14 percent in early trade on Monday after the state-owned carrier reported a sharp rise in its December quarter earnings, helped by higher freight rates and improved operating performance.

The company posted a more than fourfold jump in net profit for the third quarter, rising about 440 percent from a year earlier. Revenue also saw a strong increase, reflecting firmer charter rates across key segments and better fleet utilisation.

Management said the quarter benefited from improved global shipping demand and tighter vessel availability in select routes, while cost controls supported margins. Operating profit expanded significantly, underlining a recovery from the weak base of last year.

The stock saw heavy trading volumes following the results, with investors reacting to the scale of the earnings rebound. Market participants, however, remain watchful of volatility in global freight markets and geopolitical risks that could influence rates in the coming quarters.

Analysts said the results underscore the cyclical upswing in shipping, though sustainability of earnings will depend on how long favourable rate conditions persist.