Shares of Mazagon Dock Shipbuilders fell as much as 10% on Tuesday, October 27, after the defence PSU reported a 54.1% year-on-year decline in consolidated net profit to ₹344 crore for the September quarter from ₹749 crore in the year-ago period.
Revenue from operations fell 16.5% year-on-year to ₹2,446 crore in the September quarter, against ₹2,929 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 71.3% to ₹199 crore from ₹694 crore in the corresponding quarter last year.
EBITDA margin contracted by 1,560 basis points to 8.1% in Q2 FY27, compared with 23.7% in Q2 FY26.
The company’s board, at its meeting on October 27, also declared an interim dividend of ₹5 per equity share for FY27. It has fixed November 3, 2026, as the record date for determining eligible shareholders. Dividend payment will be completed on or before November 26, 2026.
Separately, the board approved additional credit facilities of ₹1,250 crore from State Bank of India, Mumbai, to issue a standby letter of credit (SBLC) in favour of State Bank of India, Sri Lanka, for subsidiary Colombo Dockyard PLC.
According to the company’s regulatory filing, Colombo Dockyard requires bank guarantees for advances received against shipbuilding contracts. The SBLC facility will enable the bank in Colombo to issue guarantees in favour of the subsidiary’s clients as required. Colombo Dockyard will reimburse the associated issuance charges, taxes and directly attributable costs with a 10% markup.
The board also approved a proposal to increase the company’s authorised share capital from ₹323.72 crore to ₹900 crore, subject to the requisite approvals from the Department of Investment and Public Asset Management through the administrative ministry and the company’s shareholders.
Shares of Mazagon Deck fell as much as 10% following the results announcement and were trading at ₹1,758.50, down 6.2% as of 3.13 pm. The stock has fallen 29% so far this year.