Three warship manufacturing stocks to watch in India
India's rising defence spending and focus on modernising its armed forces have created significant opportunities for domestic warship manufacturers.
With the government pushing for self-reliance in defence production, a growing share of naval procurement is being directed towards Indian shipyards. Investments in advanced warships, submarines, frigates and aircraft carriers are expected to support the industry's long-term growth.
Here are three warship-manufacturing stocks to watch.
Since 1774, Mazagon Dock Shipbuilders has played a vital role in building India’s maritime strength. It is India’s only shipyard to have built destroyers, conventional submarines for the Indian Navy & manufactured corvettes in India.
MDL is the lead shipyard for building 4 Nilgiri-class stealth frigates. The company has also delivered the Kalvari Class submarines, with 6 submarines delivered between 2017 and 2025.
Overall, MDL has delivered 809 vessels since 1960, which also includes 34 warships, from advanced Destroyers to missile boats, and 8 submarines.
The company’s performance in Q2FY27 was weak. Consolidated revenue dropped sharply to ₹2,446 crore from ₹2,929 crore, while net profit plunged 58% to ₹346 crore from ₹749 crore.
Meanwhile, MDL has signed an MoU with National Shipbuilding and Heavy Industries Park Andhra Pradesh to be the Anchor Shipyard for the proposed greenfield shipbuilding cluster at Dugarajapatnam, in Andhra Pradesh.
With an envisaged investment of ₹150 bn and capacity of 1.2 m GT per annum, MDL will anchor the development of a globally competitive shipbuilding and marine ecosystem.
#2 Cochin Shipyard
Cochin Shipyard Ltd (CSL) is among India's largest shipbuilding and ship repair companies. It gained prominence by constructing INS Vikrant, India's first indigenously built aircraft carrier.
The company also undertakes commercial shipbuilding, ship repairs and defence vessel construction. Its entry into more advanced naval platforms is an important development.
In September 2026, the company held steel-cutting and keel-laying ceremonies for Next Generation Missile Vessels (NGMV) for the Indian Navy. This provides an additional opportunity to participate in India's naval modernisation program.
Contract for construction of NGMVs was concluded with CSL in Mar 2023. The NGMVs are planned to be equipped with state-of-the-art weapon and sensors, which would significantly enhance the combat capabilities of the Indian Navy as a ‘Future Ready and Combat Ready Force’.
Coming to the order book, the current unexecuted order book stands at around ₹22,000 crore, which continues to provide CSL with good revenue visibility.
The company was also declared L1 for five next-generation survey vessels for the Indian Navy, valued at approximately ₹50 bn. Once this contract concludes, the order book would be around ₹270 bn.
#3 Garden Reach Shipbuilders and Engineers (GRSE)
Garden Reach Shipbuilders & Engineers Ltd., is a Defence PSU, under the administrative control of ministry of defence, and a Navratna company.
GRSE has the distinction of becoming the first shipyard of independent India to build a warship for Indian Navy, the Seaward Defence Boat (SDB) INS Ajay, way back in 1961.
GRSE also built the first ever Indian Export Warship “CGS Barracuda” for Govt. of Mauritius, a Fast Patrol Vessel “SCG PS Zoroaster” for Seychelles and an Ocean-Going Cargo & Passenger Ferry Vessel “MV Ma Lisha” for Cooperative Republic of Guyana.
The company has built over 800 platforms, including 118 warships for Indian Navy, Indian Coast Guard, and friendly foreign countries - highest number of warships built & delivered by any Indian shipyard till date.
In early November 2026, defence ministry signed contracts worth ₹53,866 crore with Garden Reach Shipbuilders & Engineers Limited (GRSE) and Goa Shipyard Ltd (GSL) for the acquisition of eight Next Generation Corvettes (NGCs) for the Indian Navy. Under the contracts, GRSE will construct five corvettes, while GSL will construct the remaining three.
The project marks a milestone in India's indigenous warship design and construction capabilities, as it is the first project in which the ships will be indigenously designed by the Indian Navy and constructed by Defence Public Sector Undertakings (DPSUs) selected through a competitive process.
The NGCs will be equipped with state-of-the-art capabilities – advanced missiles, weapons and sensor suites, enabling them to undertake missions across the air, surface and sub-surface domains.
In Q1FY27, the company recorded strong numbers. Revenue from operations increased from ₹1,310 crore to ₹1,815 crore, recording a growth of 39% YoY. Profit after tax rose 44% from ₹120 crore to ₹173 crore during the period.
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Conclusion
India's warship manufacturing sector is expected to grow due to the government's continued focus on defence modernisation and indigenous shipbuilding. The rising demand for advanced naval vessels provides long-term business opportunities for companies operating in this space.
However, investors should not overlook the risks. Defence projects often involve long execution timelines, cost overruns, and delays in order delivery. A strong order book does not automatically translate into immediate revenue or profits.
Further, valuations of some defence stocks may already factor in high growth expectations. Investors should therefore monitor quarterly performance, order execution and valuations rather than making decisions based on sector enthusiasm alone.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
This article is syndicated from Equitymaster.com