Among defence companies, Mazagon Dock Shipbuilder has been the highest wealth creator, growing 30-fold over the past five years. Imagine you invested ₹1 lakh on 16 October 2020, and by now you would have ₹30 lakh. Mazagon Dock has delivered this much wealth creation. Over the past five years, Mazagon’s revenue has grown at a compound annual growth rate of 18% and its net profit at double the rate of 38%.
Make in India, indigenous manufacturing, rising geopolitical tensions, higher domestic procurement targets, opening the sector to private players, and growing export opportunities have together supported the strong growth of India’s defence sector. But, beyond Mazagon, which are the three private shipbuilders that are close to becoming the next Mazagon?
Let’s take a look…
#1 Garden Reach Shipbuilders: Small-vessel specialist with scale
Garden Reach Shipbuilders (GRSE) is one of India’s premier shipbuilding companies. The company is the first shipyard in India to build warships for the Indian Navy and the Indian Coast Guard. Its primary business activities, encompassing Manufacturing and Service, account for 93.8% of its total turnover.
Where GRSE’s Core Strengths Come From
GRSE also builds commercial ships and undertakes engineering and engine production activities. The company can build frigate-sized warships, but its strength lies in building smaller vessels for the Navy and Coast Guard. It has delivered 111 warships to the Indian Navy and Indian Coast Guard.
Additionally, as of 31 March 2025, GRSE had 40 vessels under construction. The company also engages in developing critical naval technologies, such as the 30 mm Naval Surface Gun. GRSE also repairs ships from other countries, like Sri Lanka, the Maldives, Mauritius, and the Seychelles. However, the ship repair segment’s contribution to revenue is only 2.2%.
The engineering division focuses on diversification, and its share in revenue is 2.9%. The segment manufactures advanced products like portable bridges and specialised deck machinery. It actively works with organisations like the Border Road Organisation and the National Highways and Infrastructure Development Corporation.
How the Order Book Is Building Multi-Year Visibility
Looking ahead, the management is confident of the order book crossing ₹500 billion by the end of FY26, from ₹202 billion currently. This order book (if materialised) will provide a strong multi-year revenue potential of about 10 years. To this end, the company has been declared the lowest bidder (L1) for the Next Generation Corvette contract, worth ₹250 billion. This contract is expected to be signed within the next 3-4 months.
GRSE also anticipates that if the anticipated P7 Bravo contract is also secured, the order book could potentially increase upwards of ₹750 billion within the next 15 to 18 months. While the long-term outlook remains strong, management is also confident of strong growth in the near future.
The company sees massive future opportunities, too. Seven high-value projects have been accorded the Approval of Necessity by the DAC, totalling about ₹1.5 trillion. This includes the P7 Bravo project (₹700 billion), for which the Request for Proposal (RFP) is expected during Q4 of FY26, Mine Countermeasure Vessels (₹320 billion) and Landing Platform Docks (₹350 billion).
New Opportunities in Commercial and Export Shipbuilding
GRSE plans to enter the competitive commercial shipbuilding sector to meet both domestic and global demands. Targeted non-defence products include ocean ferries (cargo + passenger), multi-purpose vessels, tugs, dredgers, barges and e-ferries. It is also actively pursuing avenues to increase its geo-strategic reach for exports of defence and commercial ships.
To this end, it already achieved a breakthrough by securing export orders for the construction of eight Multi-Purpose Vessels for a German client ($108 million). This gives GRSE a foothold in the competitive European short sea shipping market.
Expansion Plans That Could Redefine Capacity by 2028
GRSE also has ambitious expansion plans. The company has envisioned the establishment of a state-of-the-art greenfield shipyard outside Kolkata by 2028 to enhance in-house capacity. It also plans to strengthen the refit and repair business vertical by actively targeting orders from the Indian Navy, Indian Coast Guard, Ministry of Home Affairs, and state governments.
The company is also building prototypes for Autonomous Vessels and widening its footprint in green vessels, such as the ‘Dheu’ fully electric ferry. This has resulted in subsequent orders for 13 hybrid ferries for the Government of West Bengal. The company is also working on Hydrogen Fuel Cell Ferry designs and Hybrid Tugs aligned with the Green Tug Transition Plan.
From a financial perspective, revenue increased 38% year-on-year to ₹29.8 billion in the first half of FY26. Net profit surged 48% to ₹2.7 billion, as operating margin expanded by 300 basis points to 9%. The growth surpassed the company’s own guidance and historical growth of about 30%.
#2 Cochin Shipyard: India’s flagship builder of big vessels
Cochin Shipyard is a leading Indian company in the maritime sector, primarily engaged in shipbuilding and ship repair. The company has been at the forefront of India’s maritime journey for over five decades. The company specialises in shipbuilding (58.8%) and ship repair, which accounted for 42.2% of revenue in FY25.
A Shipbuilder Positioned at the Centre of India’s Maritime Push
Cochin specialises in complex vessel construction, ranging from India’s first Indigenous Aircraft Carrier to world-class hybrid and electric-powered vessels. The shipbuilding portfolio includes Aircraft Carriers, Technology Demonstration Vessels, Hydrographic Survey Vessels (for defence), and Oil Tankers and Passenger Vessels (for commercial sectors).
Order Book Strength and the Pipeline Driving Long-Term Visibility
Looking ahead, Cochin’s forward strategy is encapsulated in its refreshed roadmap, CRUISE 2030 2.0. This aims to solidify the company’s position as a globally competitive, innovation-led leader in the maritime sector. The company plans to double its turnover to Rs 120 billion by FY2031 by growing at a rate of 10-12% over the next 5-10 years or more.
Cochin’s current order book (Q1 FY26) stood at ₹211 billion, providing revenue visibility of about 4 years. In addition, the company has disclosed a shipbuilding order pipeline of about ₹2.8 trillion. The company estimates the defence sector pipeline worth ₹2.2 trillion, including Mine Countermeasure Vessel, P-17 Bravo Vessel and Landing Platform Dock.
Additionally, the commercial pipeline stands at about ₹650 billion, split between Domestic (₹250 billion) and International (₹400 billion) opportunities. Cochin aims to capture high-value segments in both shipbuilding and ship repair sectors through long-term partnerships.
Strategic Partnerships Shaping the Next Phase of Growth
To this end, the company has signed a long-term association focused on merchant shipbuilding with HD KSOE, South Korea. This partnership aims for joint exploration of new building opportunities, sharing technical expertise, and enhancing productivity and capacity utilisation. The benefit of this is expected to fructify over a 3-5 year horizon.
A Memorandum of Understanding was signed to explore the joint development of world-class ship repair clusters in Kochi and Vadinar. This collaboration is focused on the ship repair sector and is expected to be completed within one and a half to two years. Cochin has also signed an MoU with Maersk primarily for ship repair and people skilling.
From a financial perspective, revenue increased by 6.7% year-on-year to ₹19.2 billion in H1FY26, while net profit declined by 22.7% to ₹2.9 billion. Profitability declined due to the absence of high-value and high-margin repair projects of 2 aircraft carriers (INS Vikrant and INS Vikramaditya), which were included in the previous financial year.
#3 Swan Defence: A revived yard with massive capacity
Swan Defence (formerly Reliance Naval & Engineering) is engaged in shipbuilding, repair and refitting of ships and rigs, and heavy engineering. Swan operates India’s largest integrated shipbuilding and repair facility located at Pipavav Port in Gujarat. The company was revived as Hazel Infra and Swan Energy following its acquisition from the NCLT resolution process.
A Reborn Shipyard With Scale Few Can Match
The facility features India’s largest dry dock, measuring 662 meters in length and 65 meters in width, enabling the simultaneous construction of large vessels. The shipyard has an annual fabrication capacity of 144,000 metric tonnes. Its fabrication sheds are capable of producing modular blocks weighing up to 300 tonnes.
It is equipped with advanced machinery, including a large-scale semi-automated TTS panel production line. Swan was also the first private sector company in India to secure a license and contract to build Naval Offshore Patrol Vessels for the Indian Navy.
The company completed multiple refit projects for the Indian Coast Guard ahead of schedule, showcasing its readiness and commitment to delivery timelines. Swan entered into agreements with leading domestic and international shipbuilding and design firms to expand its technical competencies and market access.
The company aims to actively expand its shipbuilding order book, maximise capacity utilisation, and increase operational efficiency in the near term. The company sees long-term opportunities from the expansion of coastal shipping, aimed at reducing road congestion, and the expanding ship repair and life extension market due to the aging global fleet. This presents a high-margin, recurring business opportunity for yards with integrated dry dock facilities, such as Swan.
However, it remains to be seen how this plays out in the near future, as the company has just resumed operations. However, given its asset base and management team, Swan Defence could benefit from the shipbuilding boom as well.
But Valuation Factors in Near-Term Order Book
From a valuation perspective, both GRSE and Cochin are trading at more than double their median price-to-earnings multiples. While GRSE is trading below the industry’s P/E of 67.7, Cochin is trading above the industry’s valuation. Swan Defence is a recent listing, so we have not included it in our assessment. But one thing is clear: their share prices already mirror the order books they’re sitting on and the visibility they have on future revenues.
Valuation Comparison (X)
| Company | Existing P/E | 5-Year Median | Industry P/E |
| Garden Reach | 53.9 | 26.4 | 67.7 |
| Cochin Shipyard | 59.8 | 22.0 | 47.3 |
India’s shipbuilding cycle has moved into a phase where policy support, stronger balance sheets, and multi-year defence pipelines are creating room for long, predictable growth. Mazagon has already shown what sustained execution can deliver, and GRSE, Cochin, and Swan are positioning themselves to ride the same wave. Their order books offer visibility that investors value, but the valuations show that much of this optimism is already recognised. The next leg will depend on how smoothly these pipelines convert into deliveries.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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