Mazagon Dock Shipbuilders Share Price Drops 7% After Q4 Profit Slumps 51%

Market Performance

The Mazagon Dock Shipbuilders share price declined significantly in early trade on Friday, May 30. The stock dropped 7.6% to ₹3,485.4 on the NSE by 9:18 am, following the company's quarterly earnings announcement.

Despite a robust year for the defense stock, this sharp fall came in response to weak quarterly financial performance, especially on the profitability front.

Main News

The Mumbai-based defense public sector undertaking (PSU) reported a steep 51% year-on-year decline in its Q4 net profit, which dropped to ₹325.3 Crore from ₹663 Crore in the same period last year.

While revenues showed a marginal improvement, operational performance weakened considerably:

• Revenue from operations rose 2.3% YoY to ₹3,174.4 Crore (vs ₹3,103.7 Crore in Q4 FY24)
• EBITDA plunged 83% YoY to ₹90 Crore (vs ₹524 Crore in Q4 FY24)

This massive drop in earnings and operating income overshadowed the slight revenue growth, triggering a bearish reaction in the stock market.

Company Details

Mazagon Dock Shipbuilders is a main player in India's defense manufacturing sector. The company has garnered attention recently due to potential high-value orders for the Indian Navy.

According to reports, a defense procurement proposal worth ₹44,000 Crore for 12 advanced minesweepers or mine countermeasure vessels (MCMVs) is under review by the Defence Acquisition Council. These vessels are expected to enhance maritime security by identifying and neutralizing underwater mines.

Full-Year Financial Overview

While Q4 was underwhelming, the company delivered a strong performance over the full financial year:

Revenue

• FY25 Revenue: ₹11,432 Crore
• FY24 Revenue: ₹9,467 Crore
• Growth: 21% YoY

Net Profits

• FY25 Net Profit: ₹2,414 Crore
• FY24 Net Profit: ₹1,937 Crore
• Growth: 25% YoY

Summary of the Article

Mazagon Dock Shipbuilders share price took a hit after the company posted a 51% drop in Q4 net profit, even as revenues inched up. The 83% decline in EBITDA also contributed to negative sentiment.

Despite the weak quarterly performance, the company showed strong growth in annual earnings and revenue. The defense firm's stock has already surged 130% in the past year, outperforming the broader Nifty 50, which rose 10.4% in the same period.