MAZDOCK Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹2,929 Cr
verified against source
Revenue YoY
6%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Mazagon Dock reported Q2 FY26 standalone revenue of INR 2,929 crore (+6% YoY) and PAT of INR 715 crore (+27% YoY), boosted by a INR 102 crore LD write-back on P17A's second ship. Half-year revenue stood at INR 5,555 crore (+9% YoY), though H1 PBT/PAT declined 8% YoY due to INR 1,000 crore in provisions for onerous contracts (Coast Guard, MPV) booked in Q4 FY25 and Q1 FY26. Management guided FY26 revenue of ~INR 12,500 crore with ~5% growth in FY27, flagging a near-term margin normalization as high-margin P17A delivery winds down, with stable margins of 12-15% expected on new projects. Key catalysts include the P75 additional submarine contract (targeted FY26 signing) and P75(I) commercial negotiations (targeted completion by calendar year-end). The INR 27,415 crore order book provides visibility, but ~80-90% revenue concentration in Indian Navy creates customer risk. CapEx plans include INR 500 crore (FY26), INR 5,000 crore for Tuticorin greenfield (Phase 1), and INR 1,000 crore each for Nhava Yard and 75(I) infrastructure. The risk is a revenue/margin gap before submarine projects fully ramp up, and competitive pressure in the upcoming LPD tender (INR 35,000-40,000 crore) where L&T is a rival bidder.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects FY26 revenue of approximately INR 12,500 crore, representing ~6-7% growth over FY25 standalone revenue. This guidance is based on current order book execution, primarily P17A deliveries and offshore projects.
- Management guided that FY27 revenue should grow approximately 5% over FY26, implying ~INR 13,125 crore. Growth is expected to accelerate thereafter as submarine projects (P75 additional + P75(I)) ramp up.
- CFO clarified that for new project bookings, normalized EBITDA margins are expected in the 12-15% range. This is below the 25-30% margins seen on project completions (like current P17A ships) due to earlier-stage provisioning for warranties and defects.
- Commercial negotiations with MoD are complete; project is at the government sanction stage. Management remains hopeful that the contract for three additional Scorpene-class submarines will be signed before the financial year ends.
Risks flagged
- Management explicitly acknowledged that ~80-90% of the current order book comes from the Indian Navy, creating significant customer concentration risk. Diversification into offshore (ONGC), commercial shipbuilding, and exports is underway but nascent.
- After P17A project completion, management flagged a period with only Coast Guard, MPV, and offshore projects — all with lower margins. Submarine projects (P75 additional, P75(I)) are expected to close this gap, but timing uncertainty exists.
- Analyst (Atul Tiwari, JPMorgan) directly asked about timeline, noting management had previously guided for signing 'very soon' in H1 FY26. Management's response (still awaiting government sanction) suggests delay. Media speculation about conversion to 9-submarine order was not confirmed and was declined for speculation.
- Analyst (Anupam Goswami, SUD Life) raised concern about negative operating cash flow and steep decline vs. last year. Management attributed it to utilization of Navy flexi account receipts from March 2025. Severity depends on whether this is one-time or structural working capital issue as project mix shifts.
Key quotes
- Our margins will be around 12%-15%. This is only when we are at the completion of the project and we book all the unclaimed liabilities. Our margins are high.
- The two contracts, one was for Coast Guard and another was for MPV. That is why this is the reason for dip in our PBT and PAT, if you consider on half year comparison basis.
- We would like to de-risk. We do not want to depend on a single large customer like the Indian Navy. Presently, probably 80%-90% of our order book comes from the Indian Navy.
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