Mazagon Dock Shares in Focus: Management Anticipates Revenue Growth and Expanding Order Pipeline in FY26

Mazagon Dock Shipbuilders Ltd., the state-run defence shipbuilding company, is anticipating a revenue growth of 8%–10% for FY2026, with Profit Before Tax (PBT) margins projected around 15%, the company’s management disclosed during its earnings call on May 30. In earlier briefings, the management had guided for slightly higher revenue growth in the range of 10%–12% for the ongoing fiscal year.

Management noted that margins in the Q4FY25 were adversely impacted by elevated provisioning related to three key projects — two for the Indian Coast Guard and one international project for Denmark. Collectively, these projects have a contract value of approximately ₹3,500 crore. The company will continue to reassess these provisions on a quarterly basis, with potential reversals or increases depending on evolving circumstances.

A sharp surge in sub-contracting expenses during Q4 — nearly tenfold compared to the same period last year — also weighed on profitability.

Mazagon Dock Management Optimistic About Long-Term Growth

Despite the near-term margin pressures, Mazagon Dock remains optimistic about its long-term outlook. The management cited favourable geopolitical conditions that are boosting demand for both defence and commercial shipbuilding. As a result, the company expects its order book to swell to over ₹1.25 lakh crore in FY26, from the current ₹32,260 crore, contingent upon the successful signing of two significant submarine contracts — the additional P75 and the P75I projects.

Also Read: Best Defence Stocks In India In June 2025: HAL, BDL, Nibe, Sika, and More Based on 5-Yr CAGR

The additional P75 submarine deal, valued between ₹30,000 crore and ₹40,000 crore, is anticipated to be finalised as early as next month. Additionally, the company is preparing to bid for the P17 Bravo frigates order, which is estimated at ₹70,000 crore. Another upcoming opportunity includes the Indian Navy’s ₹44,000 crore Mine Counter Measure Vessel (MCMV) project, for which a Request for Proposal (RFP) is expected in the coming months.

On June 3, 2025, Mazagon Dock share price rose over 2%, reaching a day high of ₹3,478.20 at 10:50 AM, after opening at ₹3,397.80

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