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

Executive summary

• Q2 FY26 revenue from operations rose to ₹3,026 crore, up 12% year-over-year, with total income reaching ₹3,205 crore; consolidated PAT for Q2 was ₹749 crore, up 30% year-over-year.

• Standalone PAT for Q2 was ₹751 crore, a 30% increase year-over-year; H1 FY26 standalone revenue was ₹5,659 crore, up 9% year-over-year, but PAT declined 8% due to ₹1,000 crore provisions for onerous contracts.

• Celebrated 250 years with a legacy of 807 vessels delivered since 1960, including 32 warships and 8 submarines; tri-commissioning of three frontline combatants marked a historic milestone.

• Consistent profitability for over 20 years, zero debt, and regular dividends highlight financial stability.

• Board approved unaudited financial results for Q2 and H1 FY26 and declared an interim dividend of ₹6 per share.

Financial highlights

• Standalone Q2 FY26 revenue: ₹3,026 crore, up 12% year-over-year; EBITDA: ₹971 crore, up 55% year-over-year; operating margin improved to 32% from 23%.

• Consolidated Q2 FY26 revenue: ₹3,015 crore, up 12% year-over-year; EBITDA: ₹965 crore, up 54% year-over-year; PAT: ₹749 crore, up 30% year-over-year.

• Standalone Q2 FY26 PAT: ₹751 crore; consolidated PAT: ₹749 crore; standalone EPS: ₹17.73; consolidated EPS: ₹18.58.

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

• Negative operating cash flow this quarter due to utilization of Navy flexi account funds and timing of payments.

Outlook and guidance

• Order book stands at ₹27,415 crore as of September 30, 2025, with major projects including destroyers, stealth frigates, submarines, and offshore vessels.

• FY26 revenue guidance is approximately ₹12,500 crore, with 5% growth expected in FY27; margins expected to remain around 15% for operationally efficient shipyards.

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

• Execution of new submarine contracts (P75 and P75I) anticipated to commence immediately or within six months of signing.

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