Mazagon Dock vs Garden Reach Shipbuilders: Tracking Growth, Orders and Defence Edge

As India sets its sights on becoming a global maritime power, the government has laid out an ambitious investment roadmap worth $82 billion for port and shipping infrastructure by 2035. With 95% of trade by volume and 70% by value transported via sea routes, the shipbuilding sector plays a pivotal role in ensuring economic and strategic resilience.

Two major players leading the charge are Mazagon Dock Shipbuilders Limited (MDL) and Garden Reach Shipbuilders & Engineers Limited (GRSE).

Here’s how they stack up across key metrics:

Mazagon Dock vs Garden Reach Order Book Snapshot

As of March 2025:

1. Mazagon Dock

Mazagon Dock maintains a robust order book valued at ₹32,260 crore. Approximately ₹20,000 crore of these are high-margin fixed-price contracts for major defence programs such as Project 15B destroyers, Project 17A frigates, and P-75 Kalvari-class submarines. The rest, while still fixed-cost, yield comparatively modest margins.

2. GRSE

GRSE on the other hand, has a ₹22,680 crore order book spanning 9 large projects and 40 platforms. Key components include:

• ₹11,435 crore for Project 17A frigates
• ₹3,946 crore for Anti-Submarine Warfare Shallow Water Crafts (ASW SWC)
• ₹3,327 crore for Next-Gen Offshore Patrol Vessels (NGOPV)
• ₹530 crore for Survey Vessels (Large)
• ₹785 crore for an Ocean Research Vessel
• ₹466 crore for an Acoustic Research Ship
• ₹226 crore for ferries
• ₹1,200 crore in export contracts (multipurpose vessels, dredgers)
• ₹201 crore for a 30mm Gun Project

Mazagon Dock vs Garden Reach Growth Outlook

MDL has projected a medium-term profit-before-tax (PBT) margin of around 15%. Despite recent YoY revenue growth exceeding 20%, management expects a more sustainable compound annual growth rate (CAGR) of 8–10% going forward. This is due to anticipated delays in the design and finalisation of large orders such as P-75(I), which may delay revenue recognition.

MDL is also expanding its infrastructure with a planned ₹4,000 crore capex and has acquired new land for small-ship construction. Its current production capacity allows for the simultaneous construction of 10 warships and 11 submarines.

GRSE is pursuing greenfield expansion plans along both India’s east and west coasts. This is intended to meet growing defence and commercial demand, with the company exploring new locations beyond Kolkata to broaden its national footprint.

Mazagon Dock vs Garden Reach Q4 FY25 Financial Highlights

1. Mazagon Dock:

• Revenue from operations rose marginally by 2% to ₹3,174 crore
• Net profit dropped 51% YoY to ₹325 crore
• From FY22 to FY25, revenue grew at a 3-year CAGR of ~26%, and net profit surged by 58%

2. GRSE

• Revenue jumped 62% YoY to ₹1,642 crore
• Net profit more than doubled (up 118%) to ₹244 crore
• Over FY22 to FY25, GRSE clocked a revenue CAGR of 42% and net profit CAGR of over 40%

Company Backgrounds

Mazagon Dock Shipbuilders Limited (MDL), founded in 1774, is one of India’s oldest and most versatile shipyards. It primarily caters to the Indian Navy and Coast Guard, building a wide range of vessels including submarines, combat ships, auxiliary craft, and next-gen electric and solar hybrid boats. The company also offers services like ship design, repair, refit, and logistics support.

Garden Reach Shipbuilders & Engineers Limited (GRSE), incorporated in 1934 and nationalised in 1960, specialises in the construction of warships. The company has broader operations covering ship repairs, engineering, and engine manufacturing. GRSE has ambitious plans to achieve Navratna status by 2030 and become a globally recognised Indian shipyard.

Read More: Best Defence Stocks In India In July 2025: HAL, BDL, Nibe, Sika, and More- Based on 5-Year CAGR.

Conclusion

While Mazagon Dock boasts a larger order book and significant infrastructure capabilities, GRSE is showing faster growth in both revenues and profits. Each has its strengths—MDL in submarine and destroyer programs, and GRSE in platform diversity and aggressive expansion.

As India doubles down on maritime self-reliance, both companies are likely to play pivotal roles. Investors and industry watchers would do well to monitor their order flows, infrastructure scaling, and execution timelines to better understand where long-term value might emerge in the evolving shipbuilding landscape.

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