After 40 years, Defence Shipyard HSL's net worth turns positive

New Delhi: After a gap of 40 years, ailing defence shipyard Hindustan Shipyard (HSL) has turned its net worth positive, overcoming supply chain challenges as well as liabilities and pending legacy issues that had led it to the verge of closure.

The yard, which is currently manufacturing fleet support ships for the Indian Navy and undertaking submarine refits, was taken over by the defence ministry in 2010 when it was facing debilitating financial constraints.

In 2024-25, HSL achieved a provisional total income of ₹1,586 crore and a profit before tax of ₹295 crore, reflecting a 36% year-on-year growth, officials said, adding that it was the first time in four decades that the company's net worth turned positive.


HSL is now poised to get a Miniratna status, according to officials.

Established in 1941, HSL has been a crucial asset due to its location in Visakhapatnam and the expertise it gained in complicated refits of submarines. It is located close to the Ship Building Centre, where India's nuclear armed submarines are built, as well as the Eastern Naval headquarters.

After the takeover by the defence ministry in February 2010, the yard was provided a grant of ₹452.68 crore in 2010-11 to help it modernise. However, its net worth stayed at a negative Rs 628 crore and deepened to a negative ₹1,023 crore by 2014-15 due to a lack of orders and operational challenges.

HSL was also hit hard by the Covid-19 pandemic but things started turning around over the past four years, with profits soaring on an annual basis on the back of a large navy order and other projects.

In 2023-24, HSL achieved a record turnover of ₹ 1,413 crore, nearly tripling its turnover from ₹478 crore in 2020-21.

The shipyard focused on cost reduction, productivity enhancement and fostering innovation, according to officials. It also resolved legacy issues and reduced its contingent liabilities worth ₹1,253 crore, they said.