Strong order visibility likely to help shipyard stocks sail faster

The DAC plans to order three Kalvari-class submarines with Mazagon Docks (MDL) on a nominated basis in FY26 at an order value of Rs 36,000 crore

The Defence Acquisition Council (DAC) approved naval orders worth ₹8.45 trillion over FY22–25, which is over 3x the amount for the preceding three years. There are orders worth ₹2.35 trillion lined up in FY26–27, approximately 3.1x the combined order book of the three listed PSU shipyards.

 

The combined order books of Mazagon Dock Shipbuilders (MDL), Garden Reach Shipbuilders & Engineers (GRSE), and Cochin Shipyard (CSL) have been stagnant since FY19 though their combined revenue has risen from ₹8,900 crore in FY19 to ₹12,400 crore in 9MFY25 (not annualised). The warship project pipeline is lumpy and subject to long delays. The