Mazagon Dock vs Garden Reach Shipbuilders: Who is ahead in the game?

As of 2025, India’s shipbuilding sector ranks 22nd globally, capturing only a 1.2 percent share of global ship tonnage, with a fleet of around 1,526 vessels. The industry’s valuation has surged from $90 million in 2022 to $1.12 billion in 2024, and forecasts suggest it could reach $8 billion by 2033, representing a remarkable compound annual growth rate (CAGR) of 60 percent.

Recognizing the strategic importance of a self-reliant domestic shipbuilding industry, the Indian government is aiming to reduce the nation’s dependence on foreign vessels, which currently cost India ~$90 billion annually.

Following are a few factors that differentiate Mazagon Dock and Garden Reach Shipbuilders from each other and demonstrate a clear picture of both of them:

Price Movement

With a market cap of Rs. 1.06 lakh crores, shares of Mazagon Dock Shipbuilders Limited (MDL) moved up by nearly 2 percent on BSE to Rs. 2,751 on Friday. The stock has delivered multibagger returns of around 184 percent in one year, while about 24 percent of positive returns in one month. 

Meanwhile, shares of Garden Reach Shipbuilders & Engineers Limited (GRSE) surged nearly 3 percent to Rs. 1,744.6 on BSE, with a market cap of Rs. 19,295.7 crores. The stock has delivered multibagger returns of around 120 percent in one year, while around 34 percent of positive returns in one month.

Order Book Status

As of December 31, 2024, MDL’s order book totals Rs. 34,787 crore. The company anticipates additional orders for three submarines (P-75) before the end of FY25. MDL is the sole technically qualified bidder for the P-75(I) contract, and discussions on the commercial aspects are expected to begin soon, with the goal of securing the order in the next fiscal year. Meanwhile, GRSE’s order book stands at Rs. 23,877 crore, with exports contributing Rs. 970 crore. This encompasses 40 platforms across 10 ongoing projects.

Financial Performance

MDL experienced a significant growth in its revenue from operations by around 33 percent YoY from Rs. 2,362 crores in Q3 FY24 to Rs. 3,144 crores in Q3 FY25, while the net profit grew about 29 percent YoY from Rs. 627 crores to Rs. 807 crores. Between FY21 and FY24, MDL’s revenue from operations grew at a CAGR of 33 percent, while net profit surged at a CAGR of nearly 56 percent.

On the other hand, GRSE has also seen impressive growth. Its revenue from operations rose by around 38 percent YoY, from Rs. 923 crore in Q3 FY24 to Rs. 1,271 crore in Q3 FY25, while net profit grew by 11.4 percent YoY, from Rs. 88 crore to Rs. 98 crore. GRSE’s revenue from operations grew at a CAGR of around 46 percent between FY21 and FY24, with net profit increasing at a CAGR of about 33 percent during the same period.

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Project Updates and Major Developments in Q3 FY25

MDL has laid out an extensive CAPEX plan, allocating Rs. 5,000 crore over the next 4-5 years, with an initial CAPEX outlay of around Rs. 500 crore for FY25-26. The Ministry of Defence has signed a Rs. 1,990 crore contract with MDL for the construction of an Air Independent Propulsion (AIP) plug for the DRDO-AIP system, along with its integration into conventional submarines to boost their endurance. Additionally, MDL has commenced production on the first Patrol Vessel (FPV) under the 14 FPVs Project.

On the other hand, GRSE expects to finalize contracts for the remaining two Multi-Purpose Vessels by March 31, 2025. The P-17 Alpha project is progressing well, with successful basin trials completed, and the first ship is expected to be delivered ahead of schedule in August 2025.

The Survey Vessel Large project is on track, with two ships already delivered and two more expected by mid-2025. The ASW Shallow Water Craft project is progressing according to schedule, with the first ship set for delivery by March 2025. The New-Generation Offshore Patrol Vessels project is also progressing well, with the first two ships at 40 percent physical completion.

About the Company

Mazagon Dock Shipbuilders Limited provides a wide range of services, and specialises in constructing, repairing, and refurbishing warships and submarines for both government and private institutions. It is a key supplier of warships, missile boats and submarines to the Indian Navy and Indian Coast Guard.

Incorporated in 1934, Garden Reach Shipbuilders & Engineers Limited is mainly engaged in the construction of warships. The Company was taken over by the Government of India in 1960. GRSE aims to become a Navratna company by 2030 and be globally recognised as the best Indian Shipyard company.

Written by Shivani Singh

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