Mazagon Dock Shipbuilders shares crash 10% after Q2 net profit tumbles 54%; firm declares Rs 5/share dividend

The company has declared an interim dividend of Rs 5 per equity share of face value Rs 5 for FY27, with November 3, 2026, set as the record date. The dividend payment will be completed on or before November 26, the company said in a regulatory filing.

The company has also proposed increasing its authorised share capital to Rs 900 crore from Rs 323.72 crore, comprising 180 crore equity shares of Rs 5 each, compared with 64.744 crore shares currently. The proposal is subject to the requisite consent from the Department of Investment and Public Asset Management (DIPAM) through the administrative ministry, as well as approval from the company's shareholders.

The company’s revenue from operations came in at Rs 2,446 crore, marking a 16.5% drop from Rs 2,929 crore posted in the corresponding quarter of the previous financial year. On a sequential basis, revenue is down 17% from Rs 2,942 crore in the previous quarter.

For the quarter under review, the state-owned Mazagon reported a net profit of Rs 199 crore translating a massive 71% plunge from Rs 695 crore posted in the second quarter of the previous financial year. Margins for the quarter nosedived 1,560 basis points to 8.1% from 23.7% in the year-ago period.

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In a separate disclosure, the company’s board has approved additional credit facilities of Rs 1,250 crore from State Bank of India, Mumbai, to issue a standby letter of credit (SBLC) in favour of SBI Sri Lanka for its subsidiary, Colombo Dockyard PLC. The facility will be available on terms agreed upon with Colombo Dockyard and the bank.

Mazagon Dock Shipbuilders said the SBLC issuance charges, taxes and directly attributable costs, including out-of-pocket expenses, will be borne by the company and reimbursed by its subsidiary, Colombo Dockyard PLC (CDPLC), with a 10% markup.

If CDPLC defaults on its bank guarantee, Mazagon Dock Shipbuilders will be liable as the back-to-back SBLC provider.

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Mazagon Dock share price is down 30% since the beginning of this year. However, on a five year basis, the stock has rocketed 1,267%.