Mazagon Dock Q3 profit rises 9% YoY; margins soften despite strong revenue growth

Mazagon Dock Shipbuilders reported a steady performance for the December quarter, supported by strong execution and higher revenues, even as margins moderated on a year-on-year basis.

The state-owned defence shipbuilder’s net profit rose 9% year-on-year to ₹879.8 crore in Q3FY26, compared with ₹807 crore in the corresponding quarter last year.

Revenue from operations increased 14.6% YoY to ₹3,601 crore during the quarter, up from ₹3,143.6 crore a year ago, driven by sustained progress in the execution

of key naval shipbuilding programmes.

Read More: Mazagon Dock, Indian Navy ink pact with Brazilian Navy for cooperation on Scorpène-class submarines

Operating performance remained healthy, though margin pressure was visible.

EBITDA grew 8.5% YoY to ₹887 crore in Q3FY26, compared with ₹817.3 crore in the year-ago period. However, EBITDA margin declined to 24.6% from 26% in Q3FY25, reflecting higher input costs and operating expenses during the quarter.

On the cost side, total expenses rose in line with higher activity levels. Increased consumption of materials, employee benefit expenses and subcontracting costs weighed on margins, partially offsetting the benefit of operating leverage from higher revenues.

Mazagon Dock Shipbuilders Ltd (MDL) primarily constructs warships, submarines, and commercial vessels for the Indian Navy, Coast Guard, and international clients, while also fabricating offshore oil platforms and performing repairs. It is an Indian public sector undertaking under the Ministry of Defence.

Read More: Mazagon Dock targets ₹1 lakh crore order book by FY26

For the nine months ended December 31, FY26, Mazagon Dock reported revenue from operations of ₹9,155.9 crore, compared with ₹8,257.5 crore in the corresponding period last year. Net profit for the nine months stood at ₹2,081.4 crore, marginally lower than ₹2,088.2 crore reported in the same period last year.

Shares of Mazagon Dock ended today trading 1.3% lower at ₹2,397.10 on the NSE.