Mazagon Dock: Powering India’s Navy and Beyond

Mazagon Dock Shipbuilders have been a critical part of India’s defence manufacturing ecosystem for decades.

Headquartered in Mumbai, it is the country’s largest shipyard and a key supplier of warships and submarines to the Indian Navy.

Since 1960, it has delivered 805 vessels, including 30 warships and 8 submarines.

Its portfolio also includes commercial vessels such as cargo ships, fishing trawlers, tugs, and dredgers. Defence remains its core focus, accounting for 98% of total revenue.

Over the years, the company has earned Navratna status and built a modest export portfolio.

Its growing global collaborations have added scale, and recently, it acquired a controlling stake in Colombo Dockyard PLC for ₹452 crore in an all-cash transaction.

This acquisition enhances its international ship repair capabilities, adds research and development strength, and opens up access to overseas clients.

Mazagon Dock is now preparing for a significant expansion.

It has announced plans to invest ₹5,000 crore over the next four to five years to upgrade its facilities.

For FY26 alone, the planned capex stands at ₹500 crore, of which ₹350 crore has been allocated toward constructing a floating dry dock.

The company has also recently acquired 15 acres of land to build a new facility, which will enable it to execute multiple large-scale projects simultaneously.

Even now, its current infrastructure can handle the servicing of 11 submarines and 10 warships at the same time.

This infrastructure build-out is driven by a rapidly expanding order book.

As of December 2024, the company was sitting on an order book of ₹34,787 crore across shipbuilding, submarines, and heavy engineering.

If the P75 and P75I submarine projects are awarded, that number could grow by ₹30,000-₹40,000 crore.

Additionally, the company is in contention for the ₹70,000 crore Project 17 Bravo frigate order and the Indian Navy’s ₹44,000 crore Mine Countermeasure Vessels (MCMV) programme.

If these deals materialise, Mazagon Dock’s order book could exceed ₹1.25 lakh crore by FY26.

The policy environment is also turning more favourable.

The Union Budget 2025 included several measures to support the shipbuilding sector.

These include a renewed Shipbuilding Financial Assistance Policy, a 10-year customs duty exemption, and the creation of a ₹250 billion Maritime Development Fund.

These interventions aim to increase India’s share in the global shipbuilding market, which remains below 1%, and help Indian players compete more effectively with counterparts in China and South Korea.

Financially, Mazagon Dock posted strong growth between FY20 and FY24, with revenue rising at a 15% CAGR and profits growing at a 30% CAGR.

This margin expansion was driven by better execution, larger contracts, and cost discipline.

Over the last three quarters, income and profit have seen some movement.

For the quarter ended June 30, 2025, the company reported income of ₹2,915 crore and a profit of ₹452 crore.

In the previous quarter, ending March 31, 2025, income stood at ₹3,484 crore with a profit of ₹325 crore, while a year ago, for the quarter ended June 30, 2024, income was ₹2,628 crore and profit came in at ₹696 crore.

The competitive landscape is also evolving.

Public sector peers like Cochin Shipyard and Garden Reach Shipbuilders are expanding capacity and chasing the same defence contracts.

Going forward, Mazagon Dock’s ability to win large orders, execute them on time, and manage project costs will play a crucial role in sustaining its growth momentum.

Expansion plans must stay on schedule, project timelines need tighter controls, and margins will depend on both delivery speed and cost efficiency.

The next phase of growth will be defined not just by the size of its order book but by how effectively the company translates those orders into steady earnings.

Sources:

Mazagon Dock
Financial Express
Business Standard
Trade Brains
Funds India
ET Infra
CNBC TV18
Economic Times
Equity Master