Mazagon Dock Shipbuilders (MAZDOCK) Q2 25/26 earnings summary

Executive summary

• Revenue from operations for Q2 FY26 was INR 2,929 crore, up 6% year-over-year; total income reached INR 3,205 crore, also up 6% year-over-year.

• Standalone PAT for Q2 was INR 715 crore, a 27% increase year-over-year; consolidated PAT was INR 749 crore.

• Half-year revenue from operations was INR 5,555 crore, up 9% year-over-year, but PAT declined 8% due to INR 1,000 crore provisions for onerous contracts in Q4 FY25 and Q1 FY26.

• Celebrated 250 years of shipbuilding excellence, delivering key naval assets and maintaining a strong legacy of innovation and national service.

• Only Indian shipyard to have built destroyers, conventional submarines, and corvettes for the Indian Navy.

Financial highlights

• Standalone PBT for Q2 was INR 939 crore; consolidated PBT was INR 934 crore, up 26% year-over-year.

• Standalone EPS for Q2 was INR 17.73; consolidated EPS was INR 18.58.

• Net worth at quarter-end: standalone INR 8,083 crore; consolidated INR 8,910 crore, up 22% year-over-year.

• Standalone EBITDA for H1 FY 2025-26 was ₹1,596 Cr, down 6% year-over-year; consolidated EBITDA was ₹1,591 Cr, down 6%.

• Negative operating cash flow this quarter due to utilization of Navy flexi account funds received in March 2025.

Outlook and guidance

• FY26 revenue guidance is approximately INR 12,500 crore, with 5% growth expected in FY27.

• Margins expected to remain around 15% for operationally efficient shipyards, with potential for higher margins on familiar projects like submarines and frigates.

• Order book expected to exceed INR 100,000 crore by FY27, driven by large defense and commercial projects.

• Healthy order book of ₹27,415 Cr as of September 30, 2025, supporting future revenue visibility.

• Strategic focus on indigenization, infrastructure expansion, and new project wins to drive growth.