Abhishek Sinha
Shares of Mazagon Dock Shipbuilders Ltd (MDL) climbed more than 2% in Tuesday’s trade after the state-run defence PSU reported a strong second-quarter performance. The stock rose as much as 2.58% to ₹2,882.85 apiece on the BSE following the Q2FY26 results.
Q2FY26 Highlights
Mazagon Dock reported a 28.1% year-on-year rise in consolidated net profit to ₹749.48 crore in Q2FY26, compared to ₹585.08 crore in the same period last year.
Revenue from operations rose 6.3% YoY to ₹2,929.24 crore, up from ₹2,756.83 crore.
At the operating level, EBITDA surged 36.1% to ₹695 crore from ₹510.2 crore, while margins expanded sharply to 23.7% from 18.5% a year ago.
As of September 30, 2025, the company’s order book stood at ₹27,415 crore.
Analysts’ Take: Positive Outlook Ahead
According to Krishna Doshi, Defence Analyst at Ashika Institutional Equity Research, Mazagon Dock’s Q2 performance reflected solid topline growth and margin expansion due to provision reversals that had previously weighed on profitability.
“Mazagon Dock currently has an order book of ₹274 billion versus ₹399 billion last year. However, this could rise to nearly ₹870 billion in the coming year driven by follow-on Scorpene and P75i submarine orders. The long-term outlook remains strong given India’s growing defence capex,” Doshi said.
Analysts remain bullish on the stock, citing a robust pipeline of domestic and export orders for shipbuilding PSUs.
Dividend Update
The company’s board declared a first interim dividend of ₹6 per share for FY26.
- Record date: November 4, 2025
- Dividend payment completion: On or before November 26, 2025
Technical View
According to Ruchit Jain, VP – Technical & Equity Research at Motilal Oswal Financial Services, Mazagon Dock’s stock has been consolidating in a narrow range for the past month.
“The short-term trend is sideways, but the stock is holding above its 200-day EMA at ₹2,730, which remains a strong support. A breakout above ₹2,930 with higher volumes could trigger renewed upside momentum,” Jain added.
Stock Performance Snapshot
- 1-Month: Flat performance
- 6-Months: Sideways trend
- YTD (2025): Up 25%
- 1-Year: Up 40%
- 2-Years: Up 175%
- 5-Years: Massive 3,250% multibagger gains
At 11:10 AM, shares were trading 0.18% lower at ₹2,805.05 on the BSE.
Should You Buy or Sell Mazagon Dock?
While Mazagon Dock’s fundamentals remain strong with solid profitability and a growing order pipeline, valuations are rich after a multi-year rally. Analysts advise accumulating on dips for long-term investors looking to ride India’s defence modernization wave, but short-term traders may prefer waiting for a breakout above ₹2,930.
Disclaimer: The views and recommendations mentioned are those of individual analysts or brokerage firms. Investors are advised to consult certified financial advisors before taking investment decisions.
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