Mazagon Dock earnings weakened in the September 2026 quarter, with net profit falling 71% year over year to ₹199 crore as revenue and margins declined. The state-owned shipbuilder also declared an interim dividend of ₹5 per share.

Key Takeaways

  • Revenue from operations fell 16.5% year over year to ₹2,446 crore in the second quarter of FY27.
  • The board approved ₹1,250 crore in additional credit facilities to support a standby letter of credit for subsidiary Colombo Dockyard.
  • The dividend record date is November 3, 2026, with payment scheduled by November 26.

Mazagon Dock earnings and revenue decline

Net profit for the second quarter of FY27 fell from ₹695 crore in the corresponding quarter a year earlier. Revenue declined from ₹2,929 crore a year earlier and from ₹2,942 crore in the preceding quarter.

The reported margin narrowed to 8.1% from 23.7% a year earlier, a decline of 1,560 basis points. The company separately reported profit attributable to owners of ₹344 crore, down 54% from ₹749 crore. The available figures do not explain the difference between the two profit measures.

Mazagon Dock shares fell as much as 10% to an intraday low of ₹1,691 on the BSE following the earnings announcement. That figure was not a closing price.

Credit facility supports Colombo Dockyard

The board approved additional credit facilities of ₹1,250 crore from State Bank of India, Mumbai, to support a standby letter of credit in favour of SBI Sri Lanka for Colombo Dockyard PLC. The arrangement will operate under terms agreed by the bank and the subsidiary.

Mazagon Dock will initially bear issuance charges, applicable taxes and directly attributable expenses. Colombo Dockyard will reimburse those costs with a 10% markup. Mazagon Dock will also be liable as the back-to-back letter of credit provider if the subsidiary defaults on its bank guarantee.

Dividend and proposed capital increase

The ₹5 interim dividend is for FY27 and applies to shares with a face value of ₹5 each. Payment is scheduled on or before November 26, 2026.

Mazagon Dock has proposed increasing its authorised share capital to ₹900 crore from ₹323.72 crore. The proposed capital would comprise 180 crore shares, compared with the existing 64.744 crore shares. The increase requires consent from the Department of Investment and Public Asset Management through the administrative ministry, as well as shareholder approval.

Next milestone

The next confirmed milestone is the November 3 dividend record date.

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