Mazagon Dock Share Price in Focus After 35% YoY Profit Decline in Q1 FY26 Results

Mazagon Dock Shipbuilders Ltd., a key defence public-sector undertaking under the Ministry of Defence, announced its Q1 FY26 results on July 28 after market hours. While revenue growth remained strong, a steep decline in profitability brought the company’s stock into focus.

Mazagon Dock Net Profit Slumps but Recovers Sequentially

The company reported a consolidated net profit of ₹452 crore for Q1 FY26, a 35% drop compared to ₹696 crore in Q1 FY25. However, it marked a recovery from ₹325 crore in the preceding March quarter. This was the lowest profit since the September 2023 quarter, when net profit had dipped to similar levels after peaking at ₹807 crore in Q3 FY25.

Revenue from operations stood at ₹2,625 crore, reflecting an 11.4% year-on-year increase from ₹2,357 crore in Q1 FY25. However, on a quarter-on-quarter basis, revenue declined by 26% from ₹3,174 crore reported in Q4 FY25, suggesting slower project execution or delivery cycles.

Mazagon Dock Q1 FY26 EBITDA Drops, Margin Contracts

Operating performance weakened significantly. EBITDA fell to ₹301 crore, a 53.11% decline from ₹642 crore a year ago. The EBITDA margin shrank to 11.46% in Q1 FY26 from 27.23% in Q1 FY25, pointing to rising costs or a change in the revenue mix affecting profitability.

Rising Costs Add to Margin Pressure

Cost inflation played a key role in the margin contraction.

• Employee benefit expenses stood at ₹249 crore, a 10% increase year-on-year.
• Sub-contracting expenses rose to ₹193 crore from ₹176 crore in Q1 FY25.

While both these costs came down from Q4 levels, they remained elevated compared to the same period last year.

Mazagon Dock Shipbuilders Share Price Performance

Mazagon Dock Shipbuilders Limited (NSE: MAZDOCK) shares closed lower yesterday. The stock ended the session at ₹2,789.90, down ₹93.80 or 3.25% from the previous close of ₹2,886.60. During the trading day, the stock opened flat at ₹2,886.00, briefly touched an intraday high of ₹2,907.70, but then declined to a low of ₹2,767.00 before settling near the day’s bottom.

Mazagon Dock Corporate Action History

Mazagon Dock Shipbuilders has undertaken key corporate actions in recent months, which are relevant for both existing shareholders and those tracking the stock through their demat accounts.

The company declared an interim dividend of ₹3.00 per share, with the record date set for April 16, 2025, meaning shareholders holding shares in their demat accounts as of that date were eligible to receive the dividend.

Additionally, the company executed a stock split, reducing the face value of its shares from ₹10 to ₹5, which took effect on December 27, 2024, based on the record date.

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

Conclusion

Mazagon Dock Shipbuilders continues to be a strategically important player in India’s defence manufacturing ecosystem. While revenue growth remains steady, the latest results highlight growing pressure on margins. The next few quarters will be crucial in determining whether the company can stabilise its cost structure and return to stronger profitability.

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