Synopsis: Mazagon Dock Shipbuilders’ shares surged about 9% after the company confirmed progress on the Rs 99,000 crore Project 75(I) submarine deal. The firm said negotiations with the government have been completed, and the proposal is awaiting approval. Strong investor sentiment reflects expectations of major defence orders and long-term growth in India’s shipbuilding sector.
The shares of this company, which is a prominent shipyard in India and has evolved into a renowned shipbuilding company which has constructed several vessels, including warships, submarines, cargo/passenger ships, and offshore platforms, were in momentum today after the company provided clarification on huge order deal news today.
With a market cap of Rs 1.02 lakh crore, the shares of Mazagon Dock Shipbuilders Ltd jumped about 9% in today’s trading session and reached a high of Rs 2,559. When compared to its previous day’s closing price of Rs 2,351.95. The shares are trading at a PE of 42.4, whereas their industry’s PE is at 39.4, and they have given a return of more than 2,100% in the last 5 years.
About the deal and clarification
The shares of Mazagon Dock Shipbuilders Limited rose by almost 9% on Friday. On the previous day, the shares had already gained 6% after rumours of a possible order worth ₹99,000 crore for the company related to the submarine acquisition programme. The rise in the shares of Mazagon Dock Shipbuilders Limited indicates that investors have high expectations for the company.
As reported in the news, the Indian Navy plans to sign a contract for the construction of six high-tech conventional submarines under the Project 75(I) programme in collaboration with the German firm ThyssenKrupp Marine Systems. If approved, the construction of the submarines is planned to take place in India at Mazagon Dock Shipbuilders Limited in Mumbai. It is one of the biggest defence deals that the country is planning to undertake for the modernisation programme of the Indian Navy.
As the news surfaced, the company issued an announcement stating that the negotiations for the deal have been finalised. Mazagon Dock Shipbuilders Limited stated that the discussions between the Contract Negotiation Committee (CNC) between the Government of India and the company have been finalised, and the matter has been sent to the competent authority.
The firm also stated that aside from this update, it is not aware of any other material information that could account for the recent movement in the trading price of its securities, thus addressing some of the exchange-related concerns raised upon the news being announced. Nevertheless, it is worth noting that the overall outlook regarding India’s shipbuilding market appears promising, especially considering the overall market size, as noted by a broking firm, Antique, which states that the Indian Navy, along with the Indian The
The Coast Guard aims at operating a fleet of about 200 vessels each, thus providing a promising outlook regarding the overall market size, aside from the defence contracts that India has to offer, especially regarding its commercial shipbuilding market, which is worth about Rs 12,000-15,000 crore.
Financials
The revenue from operations for the company stood at Rs 3,601 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 3,144 crore, up by about 14.5 per cent YoY. Similarly, the net profit stood at Rs 880 crore in Q3 FY26, up compared to the Rs 807 crore profit in Q3 FY25.
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