India’s leading defence PSU, Mazagon Dock Shipbuilders, delivered a mixed bag in its Q4 FY25 results. While net profit dipped sharply, revenue inched higher, and the company remains optimistic with a record-breaking order pipeline for FY26. Despite the operational hit, management is eyeing big-ticket defence orders worth over ₹1.25 lakh crore in the coming months. This blend of challenges and opportunities makes the Mazagon Dock Q4 results a focal point for investors, defence watchers, and market enthusiasts.
Q4 FY25 Performance: A Tough Quarter Amid Rising Costs
The March 2025 quarter was not smooth sailing for Mazagon Dock. Operating pressures weighed heavy, primarily due to high employee costs and increased subcontracting expenses.
Key Financial Highlights (Q4 FY25):
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Net Profit: ₹325 crore ↓ 51% YoY (from ₹663 crore)
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Revenue: ₹3,174 crore ↑ 2.3% YoY (from ₹3,103.7 crore)
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EBITDA: ₹90 crore ↓ 83% YoY (from ₹524 crore)
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EBITDA Margin: Dropped to 3% (vs 17% YoY) – ↓ 1,500 basis points
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Dividend Proposed: ₹2.71 per share (final dividend for FY25 & record date will be informed later)
The profit dip stemmed from elevated provisioning for three key shipbuilding projects. Two were for the Indian Coast Guard and one for Denmark, with a combined value of ₹3,500 crore. Management clarified that these provisions would be reviewed quarterly, offering scope for reversal depending on project execution.
Also Read: Vodafone Idea Q4 Results 2025: ₹7,166 Cr Loss,₹20,000 Cr Fundraise – Key Highlights Inside!
Mazagon Dock Share Price Movement and Market Reaction
On the day of earnings announcement, Mazagon Dock shares saw a brief dip in early trade but later recovered, buoyed by strong forward-looking statements from management. The market seems to have factored in the one-off provisioning and is now focused on FY26 prospects.
Recent Stock Movement:
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52-week high: ₹3,775
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52-week low: ₹1,200
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CMP (as of May 30, 2025): ₹3,478 (subject to intraday fluctuation)
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YTD performance: +44%
Despite short-term margin concerns, long-term investors are betting on its deep involvement in India’s strategic defence shipbuilding programme and potential contract wins in the near future.
Also Read: Samvardhana Motherson Q4 Results Trigger Bonus Buzz—Dividend Declared, Stock Jumps 3.4%
FY26 Outlook: Order Book Set to Quadruple
Mazagon Dock is setting its sights high for FY26, projecting a massive jump in its order book, contingent on signing two major submarine deals.
What’s in the Pipeline:
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Current Order Book: ₹32,260 crore
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Expected FY26 Order Book: Over ₹1.25 lakh crore
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Key Deals Pending:
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P75 additional submarines: ₹30,000–₹40,000 crore
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P75I submarines: Expected signing in FY26
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Upcoming Bids:
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P17 Bravo Frigates RFP: Valued at ₹70,000 crore
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MCMV Project RFP: Valued at ₹44,000 crore
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These figures showcase the PSU’s central role in bolstering India’s maritime defence capabilities. The current geopolitical scenario further strengthens demand for indigenous defence manufacturing, putting Mazagon Dock in a favourable position.
What Investors Should Watch Going Forward?
While the Q4 numbers were disappointing on the profitability front, several silver linings remain. The final dividend adds income visibility, and a healthy pipeline reinforces growth confidence. For retail and institutional investors alike, the following will be crucial in the next two quarters:
Key Triggers to Monitor:
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Progress and confirmation of submarine orders
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Margin recovery from Q1 FY26 onwards
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Employee cost management and subcontracting optimization
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Updates on MCMV and frigate RFP timelines
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Quarterly provision revisions for existing projects
Mazagon Dock may have hit a temporary bump, but its strategic position, full-year revenue beats, and bullish FY26 guidance suggest the shipbuilder is firmly on course for long-term value creation.
Conclusion:
The Q4 FY25 results show that Mazagon Dock is navigating through cost turbulence, but it holds its course steady with a powerful growth roadmap. For investors with a medium to long-term view, this defence behemoth remains a compelling play, especially with Make-in-India tailwinds and a ₹1.25 lakh crore order book in sight.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
