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Mazagon Dock Profit Plummets 71% Amidst Revenue Slump
27 Oct
Summary
- Net profit declined 71% year-on-year to Rs 199 crore in Q2 FY27.
- Revenue from operations fell 16.5% to Rs 2,446 crore.
- Company shares dropped 10% following the earnings announcement.
Mazagon Dock Shipbuilders reported a sharp decline in its financial performance for the September quarter of FY27. The state-owned entity's net profit attributable to owners decreased by 54% year-on-year, reaching Rs 344 crore compared to Rs 749 crore in the same period last year.
Revenue from operations saw a 16.5% year-on-year fall, amounting to Rs 2,446 crore, down from Rs 2,929 crore in the prior year. This decline also represented a 17% sequential drop from the preceding quarter. The company's profitability was severely affected, with margins contracting significantly to 8.1% from 23.7% a year ago.
In a separate announcement, the board approved additional credit facilities of Rs 1,250 crore from the State Bank of India to support its subsidiary, Colombo Dockyard PLC. An interim dividend of Rs 5 per equity share for FY27 was also declared, with November 3, 2026, set as the record date.
Additionally, Mazagon Dock proposed to increase its authorized share capital to Rs 900 crore. These developments were met with investor concern, as the company's shares fell approximately 10% after the earnings report was released.
