Mazagon Dock Shipbuilders on July 28 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.

"Despite the margin slump, Mazagon remains a key strategic player in India’s defence indigenisation programme. Its associate, Goa Shipyard, contributed ?32.9 crore to the bottom line, partially cushioning the earnings decline. With the stock having rallied sharply over FY25, these results may prompt a valuation reset unless margin recovery is visible in coming quarters. Management guidance on provisioning and execution timelines will be crucial to watch," said Harshal Dasani, Business Head, INVasset PMS.