Synopsis:
Mazagon Dock shares jumped 4% after receiving Defence Ministry approval to begin cost talks with Germany’s Thyssenkrupp for a ₹70,000 crore submarine project.
The shares of a PSU Defence company specializing in the construction of warships, submarines, offshore platforms, and various commercial vessels, jumped by up to 4 percent, followed by the talks of a Rs. 70,000 crores submarine deal with Germany’s Thyssenkrupp.
With a market capitalization of Rs. 1,11,332.88 crores on Monday, the shares of Mazagon Dock Shipbuilders Ltd rose upto 3.6 percent, making a high of Rs. 2,798.15 per share compared to its previous closing price of Rs. 2,700.65 per share.
Mazagon Dock Shipbuilders Ltd, engaged in the construction of warships, submarines, offshore platforms, and various commercial vessels, is in focus after CNBC TV-18 reported that the Ministry of Defence has granted approval to initiate cost negotiations with Germany’s Thyssenkrupp Marine Systems for the construction of six submarines under the ₹70,000-crore Project 75(I) initiative.
According to CNBC TV-18 sources, negotiations are expected to begin soon, with the final contract likely to be awarded to the Mazagon Dock–Thyssenkrupp consortium around six months after successful completion of the talks.
This approval marks a significant milestone in the P-75(I) submarine project. The two companies had previously signed a Memorandum of Understanding (MoU) in June 2023, outlining that Thyssenkrupp would manage engineering and design, while Mazagon Dock would be responsible for the construction and delivery of the submarines to the Indian Navy.
Financials & Others
The company’s revenue rose by 11.4 percent from Rs. 2,357 crores to Rs. 2,626 crores in Q1FY25-26. Meanwhile, Net profit declined from Rs. 696 crores to Rs. 452 crores in the same period.
The company is nearly debt-free and has delivered strong profit growth with a 38.3% CAGR over the past five years. It also boasts an impressive 3-year return on equity (ROE) of 32.4% and maintains a healthy dividend payout of 33.5%.
Mazagon Dock Shipbuilders Limited (MDL) is one of India’s leading shipbuilding yards, headquartered in Mumbai and operating as a premier government-owned entity under the Ministry of Defence. Established in 1774 as a small dry dock, MDL has evolved over more than two centuries into a major industrial complex with advanced shipbuilding and submarine construction capabilities. The company was incorporated as a private limited firm in 1934 and was nationalized by the Indian government in 1960.
MDL specializes in the construction of warships and submarines for the Indian Navy and Coast Guard, along with offshore platforms and support vessels for the oil and gas industry. The company has also built tankers, bulk cargo carriers, passenger ships, ferries, and a wide array of support and special-purpose vessels for both domestic and international clients.
Since 1960, MDL has delivered over 805 vessels, including more than 30 warships, from guided-missile destroyers to advanced stealth frigates, and 8 submarines. The company’s track record includes exports and a significant role in India’s defense indigenization program.
As of March 31, 2025, Mazagon Dock Shipbuilders had a total order book of ₹32,260 crore. This figure includes not just new projects but also pending work and the supply of spares for already delivered vessels.
Written by Sridhar J
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