Synopsis: Mazagon Dock Shipbuilders Ltd shares jumped sharply after reports emerged that India and Germany’s Thyssenkrupp Marine Systems are close to finalizing an $8 billion (Rs 72,000 crore) submarine agreement.
The shares of India’s leading company, engaged in construction and repair of warships, submarines, cargo/passenger ships, and offshore platforms are in focus after a key report broke out that might indicate a potential shift in India’s indigenous defence push.
With a market capitalisation of Rs 1,03,023 crore, the shares of Mazagon Dock Shipbuilders Ltd reached a day’s high of Rs 2,606.95 per share, up over 5 percent from its previous day’s closing price of Rs 2,479.80 per share. Over the past five years, the stock has delivered a multibagger return of 2,190 percent, outperforming NIFTY 50’s return of 80 percent.
Reason behind the rally
Mazagon Dock Shipbuilders Ltd (MDL) shares surged sharply on today’s trade after news emerged that India and Germany are nearing a huge $8 billion submarine agreement, which is roughly about Rs 72,000 crore.
According to sources, Germany’s Thyssenkrupp Marine Systems is looking to partner with Mazagon Dock to build advanced submarines right here in India. This isn’t just about putting together imported parts, the deal involves sharing technology and expertise, so India can manufacture these submarines domestically with German expertise for the first time. If finalised, it will be one of the largest defence contracts India has ever signed, and it will significantly deepen the defence relationship between the two nations.
The sources also indicate that the new submarines are expected to feature air-independent propulsion (AIP) systems, allowing them to remain underwater much longer than standard diesel-electric submarines. This enables them to operate more quietly and undertake extended missions, which significantly enhances India’s capacity to monitor activities and safeguard its interests in the Indian Ocean.
For Mazagon Dock, this could be transformational. It means more contracts, consistent work, and a stronger position within India’s defence sector. The company already constructs warships and submarines for the Indian Navy, so a deal of this scale would boost its momentum, support India’s defence manufacturing ambitions, and secure robust revenue for the future.
Financial and other highlights
The revenue from operations for Mazagon Dock Shipbuilders stands at Rs 2,929 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 2,757 crores, up by about 6 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 12 percent from Rs 2,626 crore.
Coming down to its profitability, the company’s net profit stood at Rs 749 crore in Q2 FY26, up from Rs 585 crore in Q2 FY25, which is a growth of 28 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 452 crore, which is a growth of 66 percent.
As of the end of September 2025, Mazagon Dock Shipbuilders had an order book of Rs 27,415 crore. The clientele in this order book are MOD, Navi Merch Ants A/S, ONGC and others.
Mazagon Dock Shipbuilders Limited is at the forefront of the Indian Defence Public Sector Undertaking. The Company is engaged in the construction and repair of ships, submarines, and offshore platforms. It is engaged in shipbuilding and submarine segments, producing destroyers, frigates, corvettes, patrol vessels and merchant vessels and offshore platforms, and jack-up rigs in the oil sector. The Company provides products driven by Artificial Intelligence, including remote-operated vehicles and advanced testing solution products.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Defence stock jumps 5% as ₹72,000 Cr Indo-German submarine deal moves closer appeared first on Trade Brains.