Mazagon Dock Shipbuilders has released its third quarter financial results for FY 2025-26, demonstrating robust operational performance alongside significant achievements in naval vessel delivery and strategic partnerships. The defense shipbuilding company showcased strong revenue growth while maintaining healthy profitability metrics during the quarter.

Financial Performance Overview

The company's consolidated financial results for Q3 FY 2025-26 reflect strong business execution and project delivery capabilities. Revenue growth was accompanied by sustained profitability, though operating margins faced some pressure compared to the previous year.

Revenue and Profitability Analysis

Mazagon Dock Shipbuilders achieved consolidated revenue from operations of ₹36.01 billion in Q3 FY 2025-26, representing a significant increase from ₹31.44 billion in the corresponding quarter of the previous year. This growth of ₹4.57 billion demonstrates the company's strong project execution capabilities and order book conversion.

The company reported consolidated net profit of ₹8.80 billion for the third quarter, compared to ₹8.07 billion in Q3 FY25, marking a year-on-year growth of ₹0.73 billion. Total income reached ₹38.63 billion, up from ₹34.34 billion in the same period last year.

EBITDA and Operational Metrics

EBITDA for the quarter stood at ₹11.49 billion, compared to ₹11.08 billion in Q3 FY25, showing an increase of ₹0.41 billion. However, the operating margin declined to 24% from 25% year-on-year, indicating higher operational costs relative to revenue growth. The company maintained strong sequential growth with EBITDA improving from ₹9.65 billion in Q2 FY26.

Interim Dividend Declaration

The Board of Directors declared an interim dividend of ₹7.50 per equity share for eligible shareholders. The record date has been fixed as February 13, 2026, for determining shareholder eligibility for the dividend payment.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its unaudited financial results in Business Standard and Prahaar newspapers on February 7, 2026. The results were approved by the Board of Directors at their meeting held on February 5, 2026.

Major Corporate Developments

During the quarter, the company achieved several significant milestones including the delivery of the third stealth frigate 'Taragiri' to the Indian Navy on November 28, 2025. The company also signed strategic partnerships, including an exclusive MoU with Naval Group, France for evolved Scorpene submarines and a teaming agreement with Swan Defence and Heavy Industries for Landing Platform Dock construction.

Order Book and Future Outlook

The company maintains a robust order book of ₹23,758 crores as of December 31, 2025, spanning various naval platforms including destroyers, frigates, submarines, and coast guard vessels. Key projects include P17A stealth frigates, coast guard vessels, and submarine maintenance contracts, providing strong revenue visibility for future quarters.

Source: Mazagon Dock Shipbuilders Limited Corporate Investors Presentation Q3 FY 2025-26

Mazagon dock shipbuilders has received government clearance for a major international defense deal, with an agreement paving the way for a $10 billion submarine contract with Germany.

Major Defense Contract Development

The government agreement represents a significant step forward for the Indian shipbuilder's international operations. This development clears regulatory and administrative hurdles that were necessary for the substantial submarine deal to proceed.

Strategic Partnership Implications

The agreement with Germany marks a notable expansion of Mazagon Dock's international defense collaborations. This partnership positions the company to leverage German submarine technology and expertise while contributing to India's naval capabilities.

The $10 billion value underscores the scale and importance of this defense contract, representing one of the larger international agreements in the submarine manufacturing sector for the Indian shipbuilder.

Business Impact

This government-backed agreement provides Mazagon Dock with the regulatory foundation needed to execute the substantial submarine contract. The deal represents a significant business opportunity that could substantially impact the company's revenue and operational scale in the coming years.