Mazagon Dock Shipbuilders Limited (MDL) has released its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, prepared on a standalone basis and independently assured by Bureau Veritas India Private Limited under a reasonable assurance framework. The report covers disclosures across all nine National Guidelines on Responsible Business Conduct (NGRBC) principles, encompassing environmental performance, workforce well-being, human rights, stakeholder engagement, and corporate governance. MDL reported a turnover of Rs. 12,83,964 Lakhs and a net worth of Rs. 8,84,316 Lakhs for the reporting period, with manufacturing and fabrication of submarines and ships accounting for 91.96% of turnover and repair activities contributing 8.04%.

Business Overview and Corporate Structure

MDL, incorporated in 1934 and headquartered at Dockyard Road, Mumbai, is a Central Public Sector Enterprise (CPSE) primarily serving the Indian Navy and the Indian Coast Guard. The company operates 2 national plants and 2 national offices, along with 2 international offices, and serves customers across 3 countries. Export contribution stood at 0.21% of total turnover. The company's paid-up capital is Rs. 2,01,69,00,000.

MDL's corporate structure includes the following associate and subsidiary entities:

Environmental Performance

MDL's environmental disclosures for FY 2025-26 reflect notable improvements in energy mix, GHG emissions, and waste management. Total energy consumption increased to 6,32,12,218.44 MJ from 5,75,03,325.10 MJ in FY 2024-25, driven by a significant rise in renewable energy consumption. The company's energy intensity per rupee of turnover stood at 0.00049 MJ/Rupee in FY 2025-26, compared to 0.00050 MJ/Rupee in the prior year.

Greenhouse gas emissions declined materially during the year. Scope 1 emissions fell to 270.56 metric tonnes of CO2 equivalent from 594.84, while Scope 2 emissions reduced to 6,367.01 metric tonnes from 10,282.39. Scope 3 emissions, covering business travel, rose to 463.71 metric tonnes from 316.19. The combined Scope 1 and Scope 2 emission intensity per rupee of turnover improved to 0.000000050 metric tonnes of CO2 equivalent/Rs. from 0.00000010 in FY 2024-25.

Total waste generated fell sharply to 11,474.48 metric tonnes in FY 2025-26 from 70,372.46 metric tonnes in FY 2024-25, primarily due to significantly lower construction and demolition waste. Total waste recovered through recycling, reuse, or other recovery operations amounted to 449.98 metric tonnes, while total waste disposed stood at 11,024.50 metric tonnes. MDL generated 6,755,608 Green Credits during the reporting period. Total water withdrawal declined to 3,32,489 kilolitres from 3,81,718 kilolitres, and total water consumption was 66,497.80 kilolitres compared to 77,414.80 kilolitres in FY 2024-25.

Renewable Energy and Sustainability Initiatives

MDL has entered into a Power Purchase Agreement (PPA) with NTPC Vidyut Vyapar Nigam Limited (NVVN) for the installation of a 1,375 kW rooftop solar power plant under the Renewable Energy Service Company (RESCO) model, with installation of 750 KW solar panels currently in progress. The company has also initiated the procurement of green tariff electricity with the objective of increasing the share of renewable electricity to 50% of overall power consumption. In addition, MDL is developing the Nhava Yard as a Greenfield Shipyard to enhance its capacity for the construction of larger and more advanced vessels. The company has deployed several energy-efficient technologies, including inverter-based welding machines, BLDC fans, LED lighting, Variable Frequency Drives (VFDs), and 5-star rated air conditioning systems, to reduce energy consumption and support its decarbonization objectives.

Workforce and Employee Well-Being

As at the end of FY 2025-26, MDL employed a total of 981 employees (905 male, 76 female) and 4,789 workers (4,623 male, 166 female). The company also employs 32 differently abled permanent employees and 84 differently abled workers. All permanent employees and workers are covered under PF and ESI schemes. The Board of Directors comprised 9 members, including 1 woman director (11%), while Key Managerial Personnel numbered 6, with no women represented.

The Lost Time Injury Frequency Rate (LTIFR) for workers was 0.13 per one million person hours worked in FY 2025-26, compared to 0.04 in FY 2024-25. Total recordable work-related injuries for workers stood at 13, and there was 1 worker fatality reported during the year. Employee LTIFR and fatalities remained at 0.00. All employees and workers received 100% coverage under human rights training, and performance and career development reviews covered 100% of employees and workers.

Governance, Ethics, and Stakeholder Engagement

MDL's governance framework is aligned with SEBI (LODR) Regulations, 2015, and DPE Corporate Governance Guidelines for CPSEs. The company noted a non-compliance pertaining to vacancies in the positions of Non-Executive Directors, Independent Directors, the Woman Director, and the minimum required Board strength, which has been taken up with the Ministry of Defence for resolution. No fines, penalties, or settlement amounts meeting the materiality thresholds prescribed under the Company's Materiality Policy were imposed on the company, any Director, or KMP during the reporting period. No complaints related to conflict of interest were received from Directors or KMPs in FY 2025-26 or FY 2024-25.

On the procurement front, 33.53% of total inputs were directly sourced from MSMEs/small producers, and 64.83% were sourced within India. Purchases from SC/ST-owned MSEs and women-owned MSEs represented 0.08% and 1.73% of total procurement, respectively. Sales to related parties as a percentage of total sales stood at 86.27% in FY 2025-26, compared to 90.23% in FY 2024-25. The company is affiliated with 6 trade and industry associations, including CII, FICCI, ISBA, SIDM, SODET, and the Bombay Chambers of Commerce & Industry.

CSR Activities

MDL's CSR initiatives for FY 2025-26 spanned healthcare, education, nutrition, skill development, and community welfare across multiple states. Key projects included support for congenital heart disease surgeries for 150 children at Sri Sathya Sai Sanjeevani Hospitals in Navi Mumbai and Raipur, nutrition support for 9,720 cancer patients and attendants in Mumbai, 49,550 meals provided daily at a government hospital in Mumbai, and education support for 41 students under the MDL Super 25 programme at Bhonsala Military School, Nagpur. The company also contributed Rs. 34,73,100 towards projects in Nandurbar, an aspirational district in Maharashtra. CSR activities covered vulnerable and marginalized groups across all major projects, with beneficiary coverage ranging from 46% to 100% depending on the programme.

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.