Mazagon Dock Shipbuilders’ share price declined 5% to an intra-day low of Rs 2,645 on the National Stock Exchange. The fall in the stock price came after the leading defence public-sector shipyard under the Ministry of Defence (MoD) reported a dip in its Q1 profits.
Mazagon Dock Shipbuilders Q1 FY26 results
Mazagon Dock Shipbuilders reported a consolidated net profit of Rs 452 crore in Q1 FY26, down 35% YoY from Rs 696 crore in the same period last year. However, it was higher than the preceding March quarter’s net profit of Rs 325 crore.
The defence company’s profitability came under pressure due to a sharp increase in provisions, rising to more than Rs 540 crore from just Rs 3 lakh a year ago, along with elevated employee expenses and nearly doubled procurement costs.
At the operating front, the company posted an EBITDA of Rs 301 crore, down from Rs 642 crore in the same quarter last year, marking a 53.11% YoY decline. The EBITDA margin also contracted to 11.46% in Q1FY26, compared to 27.23% in Q1FY25.
Mazagon Dock Shipbuilders’ stock performance
The share price of Mazagon Dock Shipbuilders has fallen 8% in the last five trading days. The stock price has declined by 17.5% in the past one month and 14% in the last six months.
Mazagon Dock Shipbuilder’s Q4 FY25 results
The defence company’s net profit halved to Rs 325 crore in the last quarter of the financial year 2024-25, compared with Rs 662 crore in the same period a year ago. Mazagon Dock’s revenue rose 2.3% YoY to Rs 3,174 crore in Q4 FY25, compared with Rs 3,103 crore posted during the same quarter last year. Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 83% on a YoY basis to Rs 89 crore, while margins narrowed to 2.82% from 16.9% last year.