Mazagon Dock shares plunge 5% as Q1 profit drops; time to book profit?

Mazagon Dock shares fell 5 per cent after it reported a 35 per cent drop in its net profit during the first quarter of the current financial year

Shares of Mazagon Dock Shipbuilders plunged over 5 per cent on Tuesday after the company reported a 35 per cent drop in its net profit during the first quarter of the current financial year (Q1FY26). 

 

The shipbuilding company's stock fell as much as 5.16 per cent during the day to ₹2,645.9 per share, the biggest intraday fall since May 30 this year. The stock pared losses to trade 3.2 per cent lower at ₹2,699 apiece, compared to a 0.04 per cent decline in Nifty 50 as of 9:36 AM. 

Mazagon Dock Q1 results 

The company reported a 35 per cent year-on-year (Y-o-Y) decline in consolidated net profit at ₹452 crore for the quarter ended June 2025, compared to ₹696 crore in the same period last year. Revenue rose 11.4 per cent to ₹2,625.59 crore from ₹2,357 crore a year ago. 

 

However, operating performance weakened, with Ebitda falling 53 per cent y-o-Y to ₹302 crore from ₹642 crore. Ebitda margin contracted sharply to 11.5 per cent from 27.2 per cent in the year-ago period.  

Antique Broking on Mazagon Dock

The sharp Y-o-Y decline in profit was primarily due to provisions of ₹540 crore, compared to ₹30 crore in the year-ago quarter, analysts said, adding that these provisions are expected to normalise from the second quarter of FY26.

 

Antique Broking highlighted that a key upcoming catalyst is the expected order for three additional Scorpene-class submarines, which could be awarded to Mazagon Dock on a nominated basis. This order has the potential to more than double the company's current order book.

 

In addition, the award of the P75I and P17B projects, each estimated at ₹70,000 crore, is also on the horizon, further strengthening the company’s pipeline. However, the brokerage flagged the risk of delays in the awarding of these large defence contracts.

 

Despite trimming the FY26 earnings per share (EPS) estimate by 8.3 per cent, Antique remains positive on Mazagon Dock, citing its strong order visibility, leadership in submarine manufacturing, and supportive government policies. It maintained a 'Buy' rating with an unchanged target price of ₹3,858 per share.  

Mazagon Dock share price history

Shares of the company fell for the third straight session and currently trade at 2.8 times the average 30-day trading volume, according to Bloomberg. The stock is down nearly 30 per cent from its peak in May. The counter has risen 20 per cent this year, compared to a 4.5 per cent advance in the benchmark Nifty 50. Mazagon Dock has a total market capitalisation of ₹1.07 trillion.