Synopsis: Mazagon Dock Shipbuilders Ltd’s orderbook is primarily driven by its Shipbuilding Division, with high-value projects like P15B Destroyers, P17A Stealth Frigates, and multiple ICGS vessels. While the Submarine Division remains strategically critical with P75 Kalvari submarines and AIP systems, the Shipbuilding Division accounts for the larger share of ongoing work.
The shares of a large-cap company specializing in the design, construction, repair, and refurbishment of advanced warships and submarines for the Indian Navy and Coast Guard have come into focus amid the ongoing conflict. This article examines whether the company’s order book is being driven primarily by its Shipbuilding Division or its Submarine Division.
With a market capitalization of Rs. 93,927.03 crores in the day’s trade, the shares of Mazagon Dock Shipbuilders Ltd declined upto 5.2 percent, reaching a low of Rs. 2320.00 per share compared to its previous closing price of Rs. 2447.90 per share.
Mazagon Dock Shipbuilders Ltd (MDL) is a premier shipbuilding company in India, established in 1934. It is located in Mumbai and operates under the Ministry of Defence, Government of India. MDL specializes in the construction of warships and submarines, serving both the Indian Navy and international clients.
The company has a rich history of building complex naval vessels, including destroyers, frigates, and stealth submarines. It is known for its expertise in integrating advanced technologies into ship design and construction, making it a strategic asset for India’s maritime defense capabilities.
Mazagon Dock Shipbuilders Ltd has built a total of 806 vessels since 1960, including 31 warships, ranging from advanced destroyers to missile boats, as well as 8 submarines. For both national and international clients, the company has also delivered cargo ships, passenger ships, supply vessels, multipurpose support vessels, water tankers, tugs, dredgers, fishing trawlers, barges, and border outposts.
In addition to ships, Mazagon Dock has manufactured and supplied jackets, wellhead platform main decks, process platforms, jack-up rigs, and other specialized offshore products, showcasing its diverse capabilities in both naval and industrial shipbuilding sectors.
Orderbook Overview
The Shipbuilding division holds a significant portfolio with major projects like P15B Destroyers and P17A Stealth Frigates, both contracted by the Ministry of Defence (MOD). These projects represent substantial values of Rs. 28,745 crore and Rs. 27,254 crore, respectively, highlighting the focus on advanced naval capabilities.
Additionally, the division is engaged in producing 21 ICGS vessels, including CTS, NGOPV, and FPV types, under MOD orders, emphasising coastal security and patrol enhancements. The multipurpose hybrid-powered vessel project with Navi Merchants adds a versatile and eco-friendly dimension to this division’s offerings.
This division maintains a healthy backlog with a balance of Rs. 14,755 crore and a number of pending deliveries, particularly in the ICGS and hybrid vessel categories. The ongoing commitments showcase a robust pipeline of high-value naval construction, reflecting strong demand and strategic importance in modern maritime defence infrastructure.
The Submarine and Heavy Engineering division is focused on advanced underwater platforms and specialized engineering projects. The flagship P75 Kalvari Submarines project, contracted by the MOD, commands a value of Rs. 29,621 crore and remains a critical component of India’s underwater defence capabilities. Alongside this, the division handles medium refit and life certification for existing submarines, ensuring extended operational lifespans and safety standards.
Further projects include the ONGC contracts for offshore platforms with a project value of Rs. 6,524 crore, and the development of AIP systems enhancing submarine stealth and endurance. With a current balance of Rs. 9,003 crore and several pending deliveries, this division continues to support strategic naval and offshore energy infrastructure, playing a crucial role in both defence and commercial maritime sectors.
The total project value across both the Shipbuilding and Submarine & Heavy Engineering divisions amounts to more than Rs. 1 lakh crore, reflecting the substantial scale of ongoing and upcoming naval and offshore projects. Of this, the Shipbuilding division accounts for Rs. 59,563 crore, while the Submarine & Heavy Engineering division contributes Rs. 40,562 crore.
The combined balance order, representing the value of work yet to be delivered, stands at Rs. 23,758 crore, indicating a strong and active order pipeline that ensures steady work and revenue in the near term for both divisions.
Division overview
The Shipbuilding Division is equipped with extensive infrastructure to handle projects of all scales, featuring 3 dry docks, 3 wet basins, 3 large slipways, and 6 smaller slipways. This layout ensures efficient construction, launching, and maintenance of vessels, supported by production, assembly, and electrical workshops that streamline the manufacturing process.
Enhancing operational capacity, the division boasts a 300-tonne Goliath crane for heavy lifting and a dedicated shore integration facility for seamless outfitting. Complementary machine and fitting shops, along with an instrumentation workshop, provide precision engineering and technical support, enabling the delivery of high-quality, complex maritime projects.
The Submarine Division is designed for specialized underwater vessel construction, featuring fabrication shops along with sub-section assembly and section formation shops. These facilities allow precise modular construction of submarine components, ensuring accuracy and efficiency in assembling complex systems.
For equipment outfitting, the division includes a dedicated cradle assembly shop, while a submarine dry dock facilitates secure construction and maintenance of the vessels. Like the Shipbuilding Division, a shore integration facility enables seamless final assembly and testing, supporting the delivery of fully outfitted, mission-ready submarines.
Financials
Revenue from operations grew YoY from Rs. 3,144 crores in Q3 2024-25 to Rs. 3,601 crores in Q3 2025-26, reflecting a healthy increase. QoQ, revenue rose from Rs. 2,929 crores in Q2 2025-26 to Rs. 3,601 crores in Q3 2025-26, showing strong sequential growth.
PAT increased YoY from Rs. 807 crores in Q3 2024-25 to Rs. 880 crores in Q3 2025-26, indicating improved profitability. QoQ, PAT rose from Rs. 749 crores in Q2 2025-26 to Rs. 880 crores in Q3 2025-26, demonstrating a solid quarter-on-quarter performance.
The company’s Operating margin slightly declined YoY from 25 percent in Q3 2024-25 to 24 percent in Q3 2025-26, but QoQ, it improved from 23 pecrent in Q2 2025-26 to 24 percent in Q3 2025-26, signaling a modest recovery in operational efficiency.
The company demonstrates strong financial performance, with a ROCE of 43.2% and ROE of 34.0%, indicating efficient capital utilization and robust profitability. Its debt-to-equity ratio is 0.00, reflecting a debt-free balance sheet, and the PEG ratio of 0.73 suggests an attractive valuation relative to growth.
Over the last five years, it has achieved impressive profit growth at a 38.3% CAGR, supported by a consistent three-year ROE of 32.4%. Operationally, the company maintains healthy shareholder returns with a dividend payout of 28.7%. Efficiency has improved as well, with debtor days reduced from 50.7 to 34.1 days, reflecting better working capital management.
While both divisions of Mazagon Dock Shipbuilders Ltd contribute significantly to its robust orderbook, the Shipbuilding division slightly leads in terms of total project value, accounting for Rs. 59,563 crore compared to Rs. 40,562 crore from the Submarine & Heavy Engineering division.
With major projects like P15B Destroyers, P17A Stealth Frigates, and multiple ICGS vessels, the Shipbuilding division drives a larger portion of ongoing work, supported by extensive infrastructure and a steady backlog. However, the Submarine division remains strategically critical, especially with the high-value P75 Kalvari submarines and AIP systems, ensuring specialized underwater capabilities that complement the broader shipbuilding portfolio.
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