Mazagon Dock Shipbuilders Limited held its Q2 FY26 earnings conference call on November 3, 2025. Executives discussed financial results, operational highlights, and future outlook. Key topics included the P75 submarine project, potential Landing Platform Dock (LPD) opportunities, margin expectations, and expansion plans. The company aims to diversify its order book and enhance shareholder value through strategic partnerships and efficient project execution.
Financial Performance Overview
Mazagon Dock reported a revenue from operations of INR 2,929 crores on a standalone basis for Q2 FY26, a 6% increase over the corresponding quarter last year. Total income stood at INR 3,205 crores, also up by 6%. Profit Before Tax (PBT) was INR 939 crores, and Profit After Tax (PAT) reached INR 715 crores, reflecting a 27% increase year-over-year. The company’s net worth reached INR 8,083 crores, with earnings per share at INR 17.73.
Key Projects and Order Book
The company is hopeful to sign a contract for three additional Scorpene Submarines, with commercial negotiations completed and awaiting sanction. Commercial negotiations for the P75I project are ongoing, and the company anticipates completion and contract signing within the financial year. The current order book stands at approximately INR 27,415 crores.
Strategic Initiatives and Partnerships
Mazagon Dock has signed an exclusive MoU with Swan Shipyard (SDHI) to jointly bid for the Landing Platform Dock (LPD) project, valued at around INR 40,000 crores. This partnership aims to leverage the synergies of public-private collaboration, combining Mazagon Dock’s design and integration capabilities with Swan Shipyard’s infrastructure. The company is also exploring collaborations for other large commercial ships.
Future Outlook and Expansion
The company anticipates revenue of approximately INR 12,500 crores for the year and projects a potential 5% growth for the coming year. Mazagon Dock is also planning a greenfield shipyard in Tuticorin, Tamil Nadu, for commercial shipbuilding, with an estimated investment of INR 5,000 crores for the first phase. The company aims to diversify its order book and reduce reliance on the Indian Navy by venturing into offshore and commercial projects.
Margin Expectations
The company generally expects stable margins of around 15% for shipbuilding activities, influenced by order book composition, project types, and execution stages. Efficiencies in design and construction of frigates, destroyers, and submarines contribute to higher margins. Legacy projects nearing completion contribute higher margins due to fewer warranty liabilities. In newer projects, margins are expected to be in the 12%-15% range.
Source: BSE
