Mazagon Dock rises 4% on buzz of Rs 70,000-cr submarine talks with Germany's Thyssenkrupp

Mazagon Dock shares have tanked 23 percent in the last three months. However, they're still in green on a year-to-date basis, up 21 percent.

Shares of Mazagon Dock Shipbuilders Ltd surged 4 percent to Rs 2,799 on August 25 after CNBC TV-18 reported that the Ministry of Defence has authorised the company to open cost negotiations with Germany’s Thyssenkrupp Marine Systems for building six submarines under the Rs 70,000-crore P-75(I) programme.

Talks are expected to commence shortly, with the final contract likely to be awarded to the Mazagon Dock–Thyssenkrupp consortium about six months after negotiations are concluded successfully, according to CNBC TV-18 sources.

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The approval marks a key step forward in the P-75(I) deal. The two companies had already signed a Memorandum of Understanding (MoU) in June 2023, under which Thyssenkrupp would handle engineering and design, while Mazagon Dock would undertake construction and delivery of the submarines for the Indian Navy.

While the development has excited investors, analysts remain cautious. JPMorgan, in a note last week, said there was "little incremental positive newsflow" around the award of the P-75(I) contract. The brokerage has an “underweight” rating on Mazagon Dock with a price target of Rs 2,468, citing an unfavourable risk-reward equation even after the stock corrected nearly 30 percent from its peak of Rs 3,775.

On July 28, the company reported a net profit of Rs 452 crore for the first quarter of the financial year 2026. This marks a decline of around 35 percent on-year from the Rs 696 crore net profit reported in the corresponding quarter of the previous financial year. Sequentially, the firm's net profit rose nearly 39 percent quarter-on-quarter from the Rs 325 crore reported in Q4 FY25.

While net profit declined annually, the firm’s revenue from operations rose over than 11 percent on-year to Rs 2,626 crore in Q1 FY26. Revenue from operations however, fell more than 17 percent sequentially.

At about 9:30 am, shares of the company were trading at Rs 2,750, higher by 2 percent from the last close on the NSE. Mazagon Dock shares have tanked 23 percent in the last three months. However, they're still in green on a year-to-date basis, up 21 percent.

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