Synopsis:
The company clarified it did not secure the ₹70,000 crore submarine project, confirming only bid qualification and denying any ongoing discussions or negotiations with the Defence Ministry.
The company, a leading player in shipbuilding and defence manufacturing, has long been recognised for its role in delivering advanced naval solutions. In this news, it addresses recent speculation surrounding a massive submarine project, clarifying the facts behind the reports and providing insight into what led to the sudden stock market reaction.
Mazagon Dock Shipbuilders Limited’s stock, with a market capitalisation of Rs. 1,08,573 crores, fell to Rs. 2,672, hitting a low of up to 3.03 percent from its previous closing price of Rs. 2,755.50. However, the stock over the past year has given a return of 25 percent.
Project Update
Mazagon Dock has clarified that, contrary to recent media reports suggesting a 4% stock rise on news of submarine project talks with Germany’s Thyssenkrupp, no such negotiations have taken place. The company stated it was merely informed in January 2025 that its bid for Project P75(I) had qualified for the next stage of procurement, but no discussions have been initiated with the Ministry of Defence or any other party since then.
Additionally, Mazagon Dock confirmed that it has no unpublished information that could have influenced its trading activity, and there are no regulatory or legal proceedings related to the news item. The company asserted that the report in question is factually incorrect and there was no requirement to make any further disclosures to the stock exchanges.
Also read: Stock under ₹50 in focus after receiving order from South Central and Northern Railways
Q1 Financial Update
The company posted revenue of Rs. 2,626 crore in Q1FY26, rising 11% YoY from Rs. 2,357 crore but declining 17% QoQ compared to Rs. 3,174 crore in Q4FY25. Profit stood at Rs. 452 crore, down 35% YoY from Rs. 696 crore, though recovering 39% sequentially from Rs. 325 crore in the previous quarter.
Over a three-year horizon, profit has compounded at a 57% CAGR, while sales grew at a 26% CAGR, highlighting strong long-term performance. A 32% CAGR in ROE further reflects efficient capital utilisation, though short-term volatility in quarterly numbers suggests cyclical pressure on topline and margins.
Written By Fazal Ul Vahab C H
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