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 Ltd reported a 21.70% year-on-year increase in consolidated net profit for the quarter ended June 30, 2026, reaching ₹55.05 crore. Revenue from operations rose 12.10% to ₹2,942.70 crore, reflecting sustained demand in defence shipbuilding and efficient cost management that expanded profit margins despite rising input costs. The results were approved by the Board of Directors on July 30, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statutory auditors, Sarda & Pareek LLP, conducted a limited review of the financial statements under Standard on Review Engagements (SRE) 2410. The consolidated figures include the results of subsidiary Colombo Dockyard PLC, which contributed revenue of ₹171.71 crore and net profit of ₹2.34 crore for the quarter. Associate Goa Shipyard Limited's share of profit was ₹38.42 lakh. In the absence of a valid Audit Committee, the financials were placed directly before the Board for approval.

Financial Performance

Consolidated revenue from operations stood at ₹2,942.70 crore in Q1FY27, compared to ₹2,625.59 crore in the same period last year. Total income increased to ₹3,255.88 crore from ₹2,949.17 crore. Profit before tax rose to ₹686.45 crore from ₹566.85 crore. After accounting for current tax of ₹134.21 crore and deferred tax charge of ₹40.20 crore, the profit for the period excluding associates was ₹512.04 crore. On a standalone basis, revenue came in at 27.8B rupees versus 26.3B rupees in the year-ago period, while standalone net profit stood at 5.10B rupees compared to 4.20B rupees previously.

Standalone net profit reached ₹509.71 crore, an increase of 21.60% from ₹419.28 crore. Basic and diluted earnings per share (EPS) for the consolidated entity were ₹13.62, compared to ₹11.21 in the previous year. Consolidated EBITDA rose to ₹760 crore from ₹625 crore in Q1FY26, while standalone EBITDA increased to ₹743 crore from ₹625 crore. On a reported basis, Q1 EBITDA stood at 4.30B rupees versus 3B rupees year-on-year, with the EBITDA margin expanding significantly to 15.63% from 11.50% in the same period last year.

What the Numbers Show

The growth in net profit outpaced revenue growth, indicating improved margin dynamics. While total expenses rose by 7.90% to ₹2,569.43 crore, this was significantly lower than the 12.10% revenue growth. Key expense drivers included cost of materials consumed at ₹949.03 crore and sub-contract costs at ₹369.44 crore. Employee benefit expenses increased to ₹289.10 crore from ₹249.82 crore, reflecting workforce expansion or wage adjustments. The company is exempt from segment reporting under notification S.O.802(E), as it is engaged in defence equipment production.

EBITDA Margin Expansion

One of the standout highlights of the quarter was the sharp improvement in profitability metrics. The EBITDA margin expanded to 15.63% from 11.50% year-on-year, underscoring the company's ability to improve operational efficiency and manage costs effectively even as revenue scaled. This margin improvement was supported by lower relative growth in total expenses compared to revenue, as well as the operating leverage inherent in the company's long-cycle defence contracts.

Order Book and Recent Milestones

As of June 30, 2026, Mazagon Dock Shipbuilders maintained a balance order book of ₹18,218 crore. This includes pending deliveries for ICGS vessels (₹2,649 crore), P17A Stealth Frigates (₹7,587 crore), and various submarine refit and heavy engineering projects. The company recently delivered the fourth P17A Stealth Frigate, INS Mahendragiri, to the Indian Navy on April 30, 2026, and signed acceptance documents for the fifth Kalvari Class Submarine, INS Vagir, on April 22, 2026. Additionally, keel-laying ceremonies were conducted for multiple Indian Coast Guard vessels, including Fast Patrol Vessels and Next Generation Offshore Patrol Vessels, reinforcing its robust pipeline for future revenue recognition.