Mazagon Dock Shipbuilders Limited (MDL) delivered its fifth consecutive year of record profitability in FY 2025-26, with standalone Revenue from Operations rising 12.31% year-on-year to ₹12,839.64 crore, up from ₹11,431.88 crore in FY 2024-25. Total Standalone Income, including Other Income of ₹1,143 crore, stood at ₹13,982.39 crore. On a consolidated basis, incorporating Colombo Dockyard PLC from the date of acquisition of the controlling stake, Revenue from Operations was ₹13,006 crore. The year was also marked by landmark vessel deliveries, a transformative international acquisition, and sustained financial discipline.

Standalone Financial Performance

The company's key standalone financial metrics for FY 2025-26 compared to FY 2024-25 are presented below:

Profit Before Tax grew 4.54% to ₹3,250.48 crore and Profit After Tax grew 4.77% to ₹2,435.77 crore. There are no exceptional items in either year. Net Worth strengthened to ₹8,843.16 crore as at 31 March 2026, compared to ₹7,180.84 crore at the close of FY 2024-25. MDL continues to be a zero-debt enterprise, with capital requirements fully met through internal accruals.

Returns and Capital Allocation

Return on Capital Employed (ROCE) stood at 37.43% for FY 2025-26, compared to 43.63% in FY 2024-25, while Return on Equity (ROE) was 30.40% against 36.46% in the prior year. The moderation reflects the rapid expansion of the capital base, as Net Worth grew by ₹1,662 crore while PAT continued to grow in absolute terms.

The total dividend declared for FY 2025-26 was ₹18.12 per equity share, aggregating to ₹730.93 crore — approximately 30% of standalone PAT. The three dividend tranches were as follows:

MDL's contribution to the national exchequer through taxes and duties in FY 2025-26 was ₹2,499.53 crore.

Capital Expenditure and Order Book

Capital expenditure for FY 2025-26 was ₹471.81 crore, directed entirely at infrastructure modernisation: the phased crane replacement programme (65% complete), Nhava Yard development, the new 12,000T Floating Dry Dock, Alcock Yard infrastructure additions, and South Yard Annex preparation. In addition, MDL invested ₹236.95 crore in the equity of Colombo Dockyard PLC, recognised as an investment in subsidiary in the standalone balance sheet. All capex and the CDPLC investment are self-funded from operating cashflows.

MDL's outstanding order book as at 31 March 2026 stood at ₹20,535 crore, spanning defence warships, submarines, Coast Guard vessels, offshore EPC, export commercial vessels, and India's first green methanol Platform Supply Vessel. The order book as at 31 March 2025 was ₹32,260 crore; the year-on-year reduction reflects the strength of execution. At ₹20,535 crore, the order book represents approximately 1.6 times annual revenue, providing multi-year forward visibility.

Landmark Deliveries and Strategic Milestones

FY 2025-26 witnessed several significant operational and strategic developments:

• P17A Frigates: Two Project 17A stealth frigates — INS Udaygiri (delivered 1 July 2025, commissioned 26 August 2025) and INS Taragiri (delivered 28 November 2025) — were delivered within a single financial year. The fourth P17A frigate, INS Mahendragiri, was delivered on 30 April 2026. The 6,670-tonne warships carry 75% indigenous content.
• Colombo Dockyard PLC Acquisition: MDL acquired a 51% controlling stake in Colombo Dockyard PLC (CDPLC), Sri Lanka's largest shipyard, with an investment of ₹236.95 crore. This marks MDL's first international acquisition and the first overseas acquisition by an Indian Defence PSU.
• SCI Methanol PSV Contract: MDL signed a ₹365 crore contract with the Shipping Corporation of India for the design and construction of India's first 3,000 DWT Methanol Dual Fuel Diesel-Electric Platform Supply Vessel.
• India-Brazil-MDL Tripartite MoU: A tripartite MoU was signed on 9 December 2025 in Brasilia for cooperation with the Brazilian Navy and the Indian Navy in the maintenance of Scorpene-class submarines.
• MPV Export Programme: Keels for MPV Yard 21001 and 21002 were laid during FY 2025-26 under the export order for six 7,500 DWT Multi-Purpose Hybrid Powered Vessels for Navi Merchants A/S, Denmark, valued at USD 85 million (₹715 crore), with an option for four additional vessels.
• Coast Guard Projects: Construction progressed on 21 Indian Coast Guard vessels comprising one Training Ship, six NGOPVs and fourteen FPVs, with a total contract value of ₹2,991 crore.

R&D, Indigenisation, and ESG

R&D expenditure for FY 2025-26 stood at ₹186.72 crore, representing 7.67% of PAT — a 59% increase year-on-year. The indigenous content in vessels built by MDL has risen from 42% in the P15 Delhi Class Destroyers to 75% in the P17A Nilgiri Class Frigates. A total of 116 major systems and components have been indigenised across ships and submarines, and 1,024 items have been submitted to the MoD Positive Indigenisation List, of which 75 have already been indigenised.

On the environmental front, over 43% of total energy consumed came from renewable sources — a growth of 67.5% over FY 2024-25. Combined Scope 1 and Scope 2 emissions declined by approximately 39% in a single year. MDL committed ₹46.81 crore on CSR activities during FY 2025-26, exceeding its obligation of ₹45.28 crore, across 35 projects spanning health, education, skill development, and heritage conservation. The total workforce as on 31 March 2026 stood at 5,770, including 242 women employees.

mazagon dock shipbuilders has scheduled its 93rd Annual General Meeting (AGM) for Thursday, August 27, 2026, to approve a final dividend of ₹4.62 per equity share for the financial year ended March 31, 2026. The meeting, to be held via Video Conferencing (VC) or Other Audio-Visual Means (OAVM), will also see shareholders vote on the appointment of Shri Dinesh Mahur as a Government Nominee Director and the re-appointment of Shri Biju George. This dividend declaration underscores the company’s continued profitability and commitment to shareholder returns in FY26.

The AGM is convened pursuant to Regulations 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The record date for determining voting rights and dividend entitlement has been fixed as Thursday, August 20, 2026. Remote e-voting will commence on Monday, August 24, 2026, at 9:00 a.m. and conclude on Wednesday, August 26, 2026, at 5:00 p.m., facilitated by National Securities Depository Limited (NSDL). Ms. Ragini Chokshi & Co. has been appointed as the scrutinizer for the e-voting process.

Key Agenda Items

Shareholders will transact both ordinary and special business at the meeting. The ordinary business includes the adoption of the Audited Standalone and Consolidated Financial Statements for FY26 and the authorization of the Board to fix remuneration for Statutory Auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Companies Act, 2013.

The special business agenda features two critical resolutions:

1. Ratification of Cost Auditors’ Remuneration: Approval of ₹2,50,000 plus applicable taxes as remuneration to M/s Dhananjay V Joshi & Associates for conducting the cost audit for FY27, as required under Section 148(3) of the Companies Act, 2013.
2. Appointment of Government Nominee Director: Approval for the appointment of Shri Dinesh Mahur (DIN: 10862645), Additional Secretary (DP) at the Ministry of Defence, as a Part-Time Official Director effective April 30, 2026. He will not be liable to retire by rotation.

Director Profiles

The meeting will also address the re-appointment of Shri Biju George (DIN: 09343562), who retires by rotation under Section 152(6) of the Companies Act, 2013. Below are the key details of the directors involved in the resolutions:

Shri Biju George brings over three decades of experience in offshore and shipbuilding, having overseen the delivery of eight surface combatants to the Indian Navy. Shri Dinesh Mahur, a 1992 batch officer of the Indian Telecom Service, holds a PGDM in Public Policy and Management from the Management Development Institute, Gurugram. His appointment aligns with Regulation 17(1C) of the SEBI LODR Regulations, 2015.

Dividend and Tax Implications

The final dividend of ₹4.62 per equity share represents a 92.4% payout on the face value of ₹5 per share. If declared, the dividend will be paid within 30 days, subject to Tax Deducted at Source (TDS). Members are advised to update their PAN and residential status with their Depository Participants or via email to rta@alankit.com before the record date to ensure correct TDS deduction under the Income Tax Act, 1961. Unclaimed dividends remain liable for transfer to the Investors Education and Protection Fund (IEPF) after seven years, as per Section 124 of the Companies Act, 2013.