India’s defence manufacturing story added another chapter this week, as Mazagon Dock Shipbuilders Ltd (MDL) — one of the country’s leading public sector defence shipyards — recorded strong earnings for the second quarter of FY26.
The PSU defence stock gained more than 2.5%, touching ₹2,882.85 on the BSE, after investors reacted positively to the company’s steady operational performance and expanding margins.
Market Performance: Steady Gains for Defence PSU Stocks
In Tuesday’s session, Mazagon Dock Shipbuilders’ share price climbed over 2.58%, tracking investor enthusiasm around its quarterly results. The broader PSU defence basket also remained firm, supported by consistent order flows and government-led manufacturing initiatives.
While the stock has remained largely stable in the past six months, it has gained 25% year-to-date (YTD) and 40% over the last one year, reflecting long-term confidence in India’s defence sector.
Over a five-year period, the company has delivered over 3,250% returns, making it one of the standout performers among PSU defence stocks.
Mazagon Dock Q2 FY26 Results: Solid Growth Across Metrics
Mazagon Dock reported another quarter of steady performance, backed by improved efficiency and higher profitability.
Key Financial Highlights (Q2 FY26):
- Net Profit: ₹749.48 crore, up 28.1% YoY from ₹585.08 crore in Q2 FY25
- Revenue from Operations: ₹2,929.24 crore, up 6.3% YoY from ₹2,756.83 crore
- EBITDA: ₹695 crore, up 36.1% YoY from ₹510.2 crore
- EBITDA Margin: Improved to 23.7% from 18.5% YoY
- Order Book: ₹27,415 crore as of September 30, 2025
The company’s performance underscores consistent execution across its shipbuilding projects and strong cost discipline. The improvement in margins also signals better project management and stable input costs.
Company Overview: Building India’s Naval Strength
Mazagon Dock Shipbuilders, headquartered in Mumbai, is one of India’s premier shipyards under the Ministry of Defence. The company plays a critical role in constructing warships, submarines, and various naval platforms for the Indian Navy and Coast Guard.
Recently, its flagship projects — including advanced destroyers and Scorpene-class submarines — have enhanced India’s maritime capability.
The newly commissioned warship INS Kolkata, designed by the Navy’s Design Bureau and constructed by Mazagon Dock, reflects the company’s advanced design and production capabilities.
Spanning 163 meters in length, weighing 7,500 tonnes, and cruising at 30 knots, the vessel is equipped with modern telecommunication systems and advanced defence weaponry.
Dividend Update: Interim Payout Announced
Alongside the results, the company declared its first interim dividend of ₹6 per share for FY26.
The record date for eligibility has been set as November 4, 2025, and the dividend distribution is expected to be completed by November 26, 2025.
This payout reflects the management’s commitment to rewarding shareholders amid consistent earnings growth.
Mazagon Dock Shipbuilders Share Performance Snapshot
- 6-Month Trend: Flat performance amid consolidation
- YTD Gains: 25%
- 1-Year Return: 40%
- 2-Year Return: 175%
- 5-Year Return: Over 3,250%
These numbers highlight the company’s strong run in the market and the broader investor confidence in India’s defence PSU ecosystem.
Summary:
Mazagon Dock Shipbuilders continues to stand tall among PSU defence stocks, backed by solid financials, a healthy order book, and consistent delivery performance.
The company’s Q2 FY26 results underline its operational resilience, improved margins, and steady revenue growth.
As India’s defence manufacturing ecosystem expands, Mazagon Dock remains a key pillar in strengthening the nation’s self-reliance in naval production.
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