₹23,758 Cr Order Book: Defence stock in after announcing strong Q3 results

SYNOPSIS: One of India’s leading shipbuilding yards posted strong Q3 FY26 results with double-digit revenue and profit growth, improved EBITDA margins, a robust Rs. 23,758 crore order book, along with a Rs. 7.5 interim dividend.

Shares of one of India’s leading shipbuilding yards, specialising in constructing and repairing warships and submarines for the Ministry of Defence and commercial vessels, surged nearly 2 percent on Friday, after reporting strong Q3 FY26 results and an order book of Rs. 23,758 crores.

With a market cap of Rs. 95,645.4 crores, shares of Mazagon Dock Shipbuilders Limited were trading at Rs. 2,371 on BSE, compared to its previous closing price of Rs. 2,397.5. So far in 2026, the stock has delivered negative returns of over 4 percent, and has fallen by nearly 14 percent in the last six months.

Financial Performance Q3 FY26

Mazagon Dock Shipbuilders Limited announced the financial results for the third quarter of FY26 on Thursday after market hours, as per the latest regulatory filings with the stock exchanges.

For Q3 FY26, the company posted a consolidated revenue from operations of Rs. 3,601 crores, reflecting a sequential growth of around 23 percent QoQ compared to Rs. 2,929 crores in Q2 FY26. Similarly, on a year-on-year basis, revenue increased by around 15 percent from Rs. 3,143.6 crores recorded in Q3 FY25.

Net profit for the quarter stood at Rs. 879.78 crore, indicating an increase of over 17 percent QoQ from Rs. 749.5 crores in Q2 FY26, as well as a marginal rise on a year-on-year basis by about 9 percent from Rs. 807 crores reported in Q3 FY25.

Operating performance surged during the quarter, with EBITDA rising sharply to Rs. 1,149 crores, by around 19 percent QoQ and 4 percent YoY. The EBITDA margins for the quarter stood at 24 percent, reflecting an increase from 23 percent in Q2 FY26 but a decline from 25 percent in Q3 FY25. Further, the Board of the company has declared a second interim dividend of Rs. 7.5 per equity share, with a record date fixed on Friday, 13th February 2026.

Order Book and More

As of 31st December 2025, the company reported a robust total order book of Rs. 23,758 crore, representing a decline of more than 13 percent from Rs. 27,415 crores reported on 30th September 2025.

The Shipbuilding portfolio is led by P15B Destroyers with a project value of Rs. 28,745 crore, of which Rs. 1,441 crore remains unexecuted, followed by P17A Stealth Frigates valued at Rs. 27,254 crore, carrying a balance order book of Rs. 9,911 crore with one vessel pending delivery. The Indian Coast Guard Ship (ICGS) programme has an order value of Rs. 2,849 crore, with Rs. 2,765 crore yet to be executed across 21 vessels. Additionally, multipurpose hybrid-powered vessels (MPV) account for Rs. 715 crore, with Rs. 638 crore pending.

In the Submarine And Heavy Engineering segment, the P75 Kalvari-class submarines represent a project value of Rs. 29,621 crore, with a residual balance of Rs. 1,832 crore, while medium refit and life certification (MRLC) work for submarines carries a balance of Rs. 929 crore. Orders from ONGC for offshore platforms contribute Rs. 4,374 crore to the unexecuted order book. The Air Independent Propulsion (AIP) project adds another Rs. 1,727 crore, while other smaller contracts contribute Rs. 141 crore.

Mazagon Dock Shipbuilders Limited, a Defence Public Sector Undertaking (DPSU) under the Ministry of Defence (MoD), is principally engaged in the building and repairing of ships, submarines, various types of vessels and related engineering products for its customers. It is the only Indian shipyard to have built destroyers and conventional submarines for the Indian Navy and the only shipyard in India conferred with Navratna Status.

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 ₹23,758 Cr Order Book: Defence stock in after announcing strong Q3 results appeared first on Trade Brains.