How Did Mazagon Dock and Other Shipbuilding Stocks Perform in Q3?

SYNOPSIS: Q3 FY26 earnings of shipbuilding-related stocks highlighted solid revenue growth and improving operational scale, while profit performance varied across companies amid differing cost structures and execution dynamics.

In late 2025, the Union Cabinet cleared a Rs. 69,725 crore comprehensive package aimed at reviving India’s shipbuilding industry and reducing reliance on foreign-built vessels, as part of a broader push to restore the country’s maritime strength.

The initiative follows a four-pillar strategy focused on strengthening domestic shipbuilding capacity, improving access to long-term financing, encouraging both greenfield and brownfield shipyard development, upgrading technology and skills, and introducing supportive legal, tax, and policy reforms to build a resilient maritime ecosystem.

A key component of the package is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 2036, backed by a total outlay of Rs. 24,736 crore. Alongside this, the government has approved the Maritime Development Fund (MDF) with a corpus of Rs. 25,000 crore to enable long-term funding support for shipbuilding and related maritime projects.

In addition, the Shipbuilding Development Scheme (SbDS), with a budgetary allocation of Rs. 19,989 crore, is designed to scale up domestic shipbuilding capacity to 4.5 million gross tonnage per year. The scheme also targets the development of mega shipbuilding clusters, expansion of supporting infrastructure, the creation of the India Ship Technology Centre under the Indian Maritime University, and the provision of risk and insurance support for shipbuilding projects. Listed below are some notable shipbuilding-related stocks that have reported their financial results for the third quarter of FY26:

Cochin Shipyard Limited

With a market cap of Rs. 40,777.5 crores, the stock opened in the green at Rs. 1,538.65 on Tuesday, up by around 1 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 1,350 crores, reflecting a sequential growth of around 21 percent QoQ compared to Rs. 1,119 crores in Q2 FY26, and a year-on-year increase of around 18 percent from Rs. 1,148 crores recorded in Q3 FY25.

Net profit stood at Rs. 145 crores, indicating a rise of about 34 percent QoQ from Rs. 108 crores in Q2 FY26, but a decline on a year-on-year basis by nearly 18 percent from Rs. 177 crores reported in Q3 FY25. Between FY22 and FY25, Cochin Shipyard’s revenue grew at a 3-year CAGR of around 18 percent, while net profit surged at a CAGR of about 14 percent.

Cochin Shipyard Limited is a “Miniratna”, Schedule-“A”, Category-I CPSE and one of the leading shipyards in India, located in the southern state of Kerala. It is primarily engaged in shipbuilding and ship repair, serving both the domestic and international markets.

Mazagon Dock Shipbuilders Limited

With a market cap of Rs. 99,326 crores, the stock opened in the green at Rs. 2,486.6 on Tuesday, up by around 1 percent on BSE. 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. Between FY22 and FY25, Mazagon’s revenue grew at a 3-year CAGR of around 26 percent, while net profit surged at a CAGR of about 58 percent.

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.

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 to be conferred with Navratna Status.

Garden Reach Shipbuilders & Engineers Limited

With a market cap of Rs. 29,100 crores, the stock opened in the green at Rs. 2,534.8 on Tuesday, up by around 1 percent on BSE. For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 1,896 crores, reflecting a sequential growth of around 13 percent QoQ compared to Rs. 1,677 crores in Q2 FY26, and a year-on-year increase of over 49 percent from Rs. 1,271 crores recorded in Q3 FY25.

Net profit stood at Rs. 171 crores, indicating a rise of around 11 percent QoQ from Rs. 154 crores in Q2 FY26, and an impressive growth on a year-on-year basis by nearly 74 percent from Rs. 98 crores reported in Q3 FY25. Between FY22 and FY25, GRSE’s revenue grew at a 3-year CAGR of over 42 percent, while net profit surged at a CAGR of about 40 percent.

Garden Reach Shipbuilders & Engineers Limited is a central public sector undertaking (CPSU), primarily engaged in the construction of warships for the Indian Navy and the Indian Coast Guard. It is also engaged in the construction of commercial vessels, engineering, and engine production activities. The company is confident of ending the current financial year with an orderbook of around Rs. 50,000 crores.

Swan Defence and Heavy Industries Limited

For Q3 FY26, the company reported a consolidated revenue from operations of Rs. 6 crores, reflecting a sequential decline of around 85 percent QoQ compared to Rs. 40 crores in Q2 FY26, but a year-on-year increase of 500 percent from Rs. 1 crores recorded in Q3 FY25.

The company reported a net loss of Rs. 33 crore, reflecting a 65 percent sequential increase from Rs. 20 crore in Q2 FY26, while losses narrowed by about 34 percent year-on-year from Rs. 53 crore in Q3 FY25.

Swan Defence and Heavy Industries Limited is mainly engaged in the construction of vessels, repairs and refits of ships and rigs and heavy engineering. It has a large shipbuilding/repair infrastructure in India, including the largest dry dock in India, and is the first private sector company in India to obtain the licence and contract to build Naval Offshore Patrol Vessels (NOPVs) for the Indian Navy.

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