Mazagon dock shipbuilders Limited has issued a regulatory clarification to BSE Limited regarding recent media reports about India-Germany submarine manufacturing deal negotiations. The company responded to BSE's inquiry about a Business Standard report dated January 8, 2026, which discussed an $8 billion submarine manufacturing deal between India and Germany.

Company's Response to BSE Inquiry

The shipbuilder addressed three specific queries raised by BSE regarding the news report and potential impact on trading activity:

P75(I) Project Status Update

Mazagon Dock Shipbuilders confirmed that negotiations with the Indian Navy and Ministry of Defence regarding the P75(I) project have commenced and are currently ongoing. The company referenced its previous disclosures made on August 25, 2025, and September 10, 2025, which had already announced the commencement of these negotiations.

The P75(I) project represents a significant submarine manufacturing initiative, and the company's clarification provides transparency regarding its involvement in the ongoing discussions.

Regulatory Compliance

The clarification was issued under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Lalatendu Acharya signed the disclosure document dated January 12, 2026.

The company stated it is not aware of any other material developments beyond those mentioned in the news report, ensuring complete transparency with market participants and regulatory authorities.

Mazagon dock shipbuilders shares surged over 5% in today's trading session following reports that India and Germany are nearing finalization of a massive $8 billion submarine agreement. The stock reached a day's high of ₹2,606.95, marking a significant jump from the previous day's closing price of ₹2,479.80.

Deal Structure and Strategic Implications

According to sources, Germany's Thyssenkrupp Marine Systems is looking to partner with Mazagon Dock to build advanced submarines domestically in India. The agreement goes beyond simple assembly of imported components, involving comprehensive technology transfer and expertise sharing for indigenous manufacturing capabilities.

The proposed submarines are expected to feature air-independent propulsion (AIP) systems, enabling extended underwater operations compared to standard diesel-electric submarines. This technology enhancement would significantly boost India's maritime surveillance capabilities and strategic presence in the Indian Ocean region.

Stock Performance and Market Response

With a market capitalization of ₹1,03,023 crores, Mazagon Dock Shipbuilders has demonstrated exceptional long-term performance. Over the past five years, the stock has delivered multibagger returns of 2,190%, substantially outperforming the NIFTY 50's return of 80% during the same period.

Financial Performance Highlights

The company reported robust financial results for Q2 FY26, demonstrating strong operational performance across key metrics.

As of September 2025, the company maintains a substantial order book valued at ₹27,415 crores, with clients including the Ministry of Defence (MOD), Navi Merch Ants A/S, ONGC, and other organizations.

Business Operations and Capabilities

Mazagon Dock Shipbuilders Limited operates as a leading Defence Public Sector Undertaking, specializing in construction and repair of naval vessels, submarines, and offshore platforms. The company's portfolio encompasses:

• Naval Vessels: Destroyers, frigates, corvettes, and patrol vessels
• Commercial Ships: Merchant vessels and offshore platforms
• Oil Sector: Jack-up rigs and related equipment
• Advanced Technology: AI-driven products including remote-operated vehicles and testing solutions

The potential submarine deal represents a transformational opportunity for Mazagon Dock, promising sustained revenue streams, enhanced technological capabilities, and strengthened positioning within India's expanding defence manufacturing ecosystem.