The shipping industry and shipping stocks are in the news. Reports indicate that the Indian government has conferred infrastructure status on large ships.
The new status facilitates access to capital and investment opportunities for shipbuilders and shipping firms, enhancing confidence in the sector and positively impacting stock performance.
In yet another positive development for the industry, Tamil Nadu has recently attracted a significant investment of Rs 300 billion (bn) for its shipbuilding industry.
This funding will be utilised to create two state-of-the-art greenfield commercial shipyards in the Tuticorin district. These developments signal a clear intent of the nation aspiring to become among the top shipbuilding nations by 2047.
Here is a list of 3 fastest growing shipping stocks, which can benefit from the growing industry.
The choice has been made after scanning the data from the Equitymaster screener. We have chosen better known companies with a proven track record.
#1 Mazagon Dock Shipbuilders
First on our list is Mazagon Dock Shipbuilders.
The company has evolved significantly, transitioning from a modest ship repair enterprise to a diversified, multi-product organisation.
It’s recognised for its expertise in constructing technologically complex and cutting-edge warships and submarines for the Indian Navy.
The company has expanded into the production of offshore platforms for oil exploration and drilling.
Mazagon Dock Financial Snapshot (FY23-25)
| FY23 | FY24 | FY25 | |
| Net Sales (m) | 78,272 | 94,666 | 114,319 |
| Sales Growth % | 36.5 | 20.9 | 20.8 |
| Net Profit (m) | 10,461 | 18,089 | 22,773 |
| ROCE % | 29.7 | 39.1 | 38.7 |
Mazagon Dock has delivered 3-year average CAGR of 25.9% in terms of sales. The 3-year average CAGR in terms of net profits was a solid 59.3%.
However, it faced challenges in profitability in the first quarter of FY26. Its Q1 FY26 results revealed revenues of Rs 26,256 million (m) compared to Rs 23,570 m in the same period last year.
Despite the revenue growth, net profits fell significantly, dropping to Rs 4,193 m in Q1 FY26 from Rs 6,659 m in the corresponding quarter of the previous year.
Moving forward, Mazagon Dock is making significant strides with a robust order book valued at around Rs 322.60 bn.
The company is implementing a capital expenditure program aimed at doubling its existing shipbuilding capabilities. This effort is underpinned by a solid financial position, with no immediate requirement for debt financing to support the expansion plan.
#2 Cochin Shipyard
Second on our list is Cochin Shipyard.
Cochin Shipyard is a premier shipbuilding and repair company in India. With the capability to construct vessels up to 110,000 DWT and repair ships as large as 125,000 DWT, it serves as the foremost facility for managing the country’s largest ships.
Cochin Shipyard Financial Snapshot (FY23-25)
| FY23 | FY24 | FY25 | |
| Net Sales (m) | 23,646 | 38,305 | 48,200 |
| Sales Growth % | -25.9 | 62.0 | 25.8 |
| Net Profit (m) | 3,047 | 7,833 | 8,273 |
| ROCE % | 10.4 | 22.2 | 21.1 |
Cochin Shipyard has delivered a 3-year average CAGR of 14.7% in terms of sales. The 3-year average CAGR in terms of net profits was 13.6%.
In the first quarter of FY26, the company reported revenues of Rs 10,686 m. This was significantly higher than the Rs 7,715 m recorded during the same period last year.
Net profit for the quarter also saw an improvement, rising to Rs 1,878 m from Rs 1,742 m in the same quarter last year.
Cochin Shipyard has a robust order book valued at Rs 211 bn, ensuring revenue visibility for several years to come.
#3 GRSE
Third on our list is Garden Reach Shipbuilders and Engineers (GRSE).
The company is a leading defence shipyard owned by the Indian government. It’s based in Kolkata.
It specialises in the design, construction, and maintenance of naval and commercial vessels, serving primarily the Indian Navy and Indian Coast Guard.
GRSE Financial Snapshot (FY23-25)
| FY23 | FY24 | FY25 | |
| Net Sales (m) | 25,611 | 35,926 | 50,757 |
| Sales Growth % | 46.0 | 40.3 | 41.3 |
| Net Profit (m) | 2,281 | 3,573 | 5,274 |
| ROCE % | 22.3 | 29.7 | 34.6 |
GRSE has delivered a 3-year CAGR of 42.5% in terms of sales. The 3-year CAGR in terms of net profits is 40.7%.
GRSE is working on 15 warships across four different classes for the Indian Navy. The company has emerged as the lowest bidder (L1) for the construction of five of the eight Next Generation Corvettes (NGC) for the Indian Navy in a contract valued at about Rs 250 bn.
It has recently signed contracts to build two Coastal Research Vessels (CRVs) for the Geological Survey of India, equipped with scientific labs for oceanographic research.
The company is poised for significant growth, backed by a robust order pipeline, a rising international presence, ongoing modernisation efforts, and steadily improving financial results.
Conclusion
The Indian shipping industry is sailing on a strong growth path, backed by supportive government policies, heavy investments in infrastructure, and ongoing fleet expansion.
Together, these factors are set to boost India’s role in global maritime trade over the next 5–10 years.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
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