Summary of this article
What: Defence PSU Mazagon Dock's share price tumbled up to 5.2 per cent after it posted its Q1 FY26 results.
Mazagon Dock Q1 Results: The PSU reported a 35 per cent YoY decline in consolidated net profit at Rs 452 crore. Revenue from operations grew 11 per cent YoY to Rs 2,625.6 crore.
What Brokerages Say: Brokerage firm Antique said that while revenue saw a healthy YoY increase, Ebitda decline was sharp due to higher provisions, which it expects to normalise from the next quarter.
Mazagon Dock Share Price History: So far in July, the stock has seen a correction of nearly 18.5 per cent. From its all-time high, the stock is trading at a discount of 28 per cent.
Shares of Mazagon Dock Shipbuilders and Engineers tumbled as much as 5.2 per cent on July 29, hitting its three-month low. The decline came after the shipbuilding company reported its quarterly results for the period ended June 30, 2025 (Q1 FY26).
Mazagon Dock reported a 35 per cent year-on-year (YoY) decline in consolidated net profit at Rs 452 crore for Q1 FY26, down from Rs 696 crore a year ago. However, net profit rose 39 per cent quarter-on-quarter (QoQ) from Rs 325 crore in Q4 FY25.
Revenue from operations grew 11 per cent YoY to Rs 2,625.6 crore but declined 17 per cent sequentially. Earnings Before Interests, Taxes, Depreciation, and Amortisation (Ebitda) stood at Rs 793.5 crore, and Ebitda margin came in at 30.2 per cent, led by lower input costs and higher contribution from high-margin projects.
What Brokerages Say
Antique, a stock broking firm, said that Mazagon Dock's Q1 performance was mixed. While revenue saw a healthy YoY increase, the brokerage highlighted that Ebitda decline was sharp due to higher provisions, which it expects to normalise from the next quarter.
"In Q4 FY25, the company made a provision of Rs 510 crore to account for anticipated losses, primarily due to cost escalations related to two fixed-price contracts-the fast patrol vessel and the multi-purpose vessel orders from Navi Merchants, Denmark (combined estimated value: Rs 3500 crore). We understand that the provisions made in Q1 FY26 also largely pertains to these very contracts," said Antique.
The firm remains optimistic about the company’s prospects, citing a strong order pipeline, particularly the expected award of additional Scorpene submarines, which could significantly boost the order book. It also highlighted potential large orders under consideration, while cautioning about possible delays.
“Follow-on order for three Scorpene submarines and six P75I submarines can significantly elevate the order book and drive medium-term growth in revenue, we believe,” said Antique.
Mazagon Dock Share Price Falls Over 18% MTD
The public sector undertaking (PSU), which primarily caters to the defence sector, has seen a correction of over 18 per cent in its shares in July so far.
So far in July, the stock has seen a correction of nearly 18.5 per cent.
The defence PSU stock was trading at Rs 2,711.30 apiece on the NSE, down 2.82 per cent against its previous close, at 1:05 PM.
From its all-time high of Rs 3,775, the stock is trading at a discount of 28 per cent.
