India has outlined plans to invest around $82 billion in port and shipping infrastructure by 2035. As per the Ministry of Shipping, nearly 95 percent of the country’s trade by volume and 70 percent by value is handled through maritime transport, underlining the sector’s strategic importance.
In a move to further strengthen domestic shipbuilding, the Union Budget 2025-26 extended the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, allocating Rs. 18,090 crore in subsidies to support Indian shipyards and make local manufacturing more competitive.
Here are some key differences between Mazagon Dock Shipbuilders and Garden Reach Shipbuilders that highlight their individual strengths and positioning in the shipbuilding space.
Price Movement
With a market cap of Rs. 1.34 lakh crores, shares of Mazagon Dock Shipbuilders Limited moved up by nearly 2.5 percent on BSE to Rs. 3,369.25 on Friday. The stock has delivered positive returns of around 19 percent in one year, but has fallen by over 2 percent in one month.
Meanwhile, shares of Garden Reach Shipbuilders Limited (GRSE) surged nearly 3.3 percent to Rs. 3,040.35 on BSE, with a market cap of Rs. 34,059 crores. The stock has delivered positive returns of around 11 percent in one year, but has fallen by over 11 percent in one month.
Order Book Status
As of March 2025, Mazagon Dock holds a total order book valued at Rs. 32,260 crores. A significant portion of the order book—around Rs. 20,000 crore—comprises high-margin, fixed-price contracts. These include key projects such as the 15 Bravo, 17 Alpha, and the P-75 Kalvari-class submarines. While the remaining orders are also under fixed cost, they are associated with comparatively lower margins.
Meanwhile, GRSE’s order book stood at Rs. 22,680 crore, covering 9 projects that span 40 platforms. The breakup includes Rs. 11,435 crore for P-17 Alpha Frigates, Rs. 3,946 crore for Anti-Submarine Shallow Watercraft (ASW SWC), Rs. 3,327 crore for Next-Gen Offshore Patrol Vessels (NGOPV), Rs. 530 crore for Survey Vessels (Large), Rs. 785 crore for an Ocean Research Vessel (NCPOR), Rs. 466 crore for an Acoustic Research Ship, Rs. 226 crore for ferries, around Rs. 1,200 crore for export projects such as multipurpose vessels and dredgers, and Rs. 201 crore for the 30mm Gun Project.
Growth Guidance
MDL has guided for a medium-term profit-before-tax (PBT) margin of around 15 percent. While recent revenue growth has exceeded 20 percent YoY, management expects it to normalise to a more sustainable 8-10 percent CAGR, citing delays in the design and finalisation phase of new large orders like P-75 and P-75(I) as a factor that will slow revenue recognition in the near term.
The company anticipates signing contracts for additional P-75 and P-75(I) submarines within FY26, which could boost the order book from the current Rs. 32,000 crore to over Rs. 1.25 lakh crore.
Potential order inflow (next 18-24 months): Rs. 2-2.5 lakh crore possible, contingent on winning P-75, P-75(I), 17 Bravo frigates (Rs. 70,000 crore), and MCMV (Rs. 44,000 crore) projects. P-75 additional submarines contract value: Rs. 30,000-40,000 crore (expected signing in the next 1-2 months). Land acquired from the port for small ship construction; major CAPEX planned (~Rs. 4,000 crore).
On the infrastructure side, MDL has acquired additional land for small ship construction and has planned a significant capex of ~Rs. 4,000 crore. The yard currently has the capacity to build 10 major warships and 11 submarines concurrently.
Talking about GRSE, the company is currently exploring greenfield expansion outside Kolkata on both the east and west coasts to support future defence and commercial demand.
FY25-26 is expected to mark the company’s peak performance period, though growth may plateau if major new orders are delayed. GRSE aims to deliver 28 ships by the end of 2025, supported by facility upgrades and leased dry dock capacity in Kolkata For the remaining Rs. 11,400 crore order under the P-17 Alpha project, revenue will be recognised in a 40:60 ratio across FY26 and FY27.
Delivery guidance stands at 7 ships in FY26 (including 1 P-17 Alpha and 4 ASW SWCs), followed by 7 more in FY27, and 5 ships in FY28, including coastal and oceanographic research vessels.
Financial Performance
MDL experienced a marginal growth in its revenue from operations by around 2 percent YoY from Rs. 3,104 crores in Q4 FY24 to Rs. 3,174 crores in Q4 FY25, while the net profit declined by about 51 percent YoY from Rs. 663 crores to Rs. 325 crores. Between FY22 and FY25, MDL’s revenue from operations grew at a 3-year CAGR of nearly 26 percent, while net profit surged at a CAGR of 58 percent.
On the other hand, GRSE also reported a growth in revenue from operations by around 62 percent YoY, from Rs. 1,016 crore in Q4 FY24 to Rs. 1,642 crore in Q4 FY25, while net profit grew by 118 percent YoY, from Rs. 112 crore to Rs. 244 crore.
GRSE’s revenue from operations grew at a 3-year CAGR of more than 42 percent between FY22 and FY25, with net profit increasing at a CAGR of over 40 percent during the same period.
About the Company
Established in 1774, Mazagon Dock Shipbuilders Limited is a key supplier of warships, missile boats and submarines to the Indian Navy and Indian Coast Guard. Its diverse product portfolio includes naval ships, submarines, littoral combat ships, naval auxiliary vessels, tugs, barges, dredgers, support vessels, ferries, cargo ships, Fuel Cell Electric Vessels, air boats, solar electric hybrid boats, lithium-ion batteries, and AUV swarm drones. Beyond manufacturing, the company also offers services such as warship and submarine repair and refit, ship designing, tug support, supply chain management, and the use of self-propelled modular transporters (SPMTs).
Incorporated in 1934, Garden Reach Shipbuilders & Engineers Limited is mainly engaged in the construction of warships. The Company was taken over by the Government of India in 1960. GRSE aims to become a Navratna company by 2030 and be globally recognised as the best Indian Shipyard company. Its operations span shipbuilding, ship repairs, as well as engineering and engine works.
Written by Shivani Singh
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