Capex Expansion Positions

MAZDOCK

for Scale-Up in Shipbuilding

(MDL), India’s leading defence shipbuilder, is poised for a major scale-up as it targets an ambitious ₹1 lakh crore order book by H1FY27, compared with the current ₹23,758 crore. With mega defence contracts in advanced stages of discussion and aggressive capex underway, MDL is positioning itself for sustained revenue visibility and enhanced execution capabilities. While near-term growth remains steady, the real catalyst lies in securing large submarine and destroyer projects. Order Book & Pipeline - Current order book: ₹23,758 crore, ~2x annual revenue, visibility for 2–2.5 years. - Mega pipeline: - ₹70,000 crore P-75I Submarine Project (advanced discussions). - ₹1.55 lakh crore opportunity across Next-Gen Destroyers (P-15C/P-18) and P-17B Frigates. - Target: ₹1 lakh crore order book milestone by H1FY27. Strategic Capex & Expansion - ₹1,000 crore investment in yard de-bottlenecking and upgrades for P-75I. - ₹5,000 crore planned over five years for a greenfield commercial shipyard at Thoothukudi, Tamil Nadu. - Current capacity: Ability to construct 11 submarines simultaneously. - Export ambitions: Scorpene-class submarines to Asian nations. Operational Performance (Q3FY26) - Revenue: ₹3,601 crore, +14.6% YoY. - EBITDA margin: 24.6%, down from 26% YoY due to higher operating expenses, but above long-term guidance of 15%. - FY26 revenue target: ₹12,500 crore. - Ship repair segment: Colombo Dockyard revenue to rise from ₹1,000 crore to ₹1,500 crore over two years. Outlook & Valuation - Stock trades at 26x FY28 earnings, reflecting optimism but also pricing in execution risks. - Near-term growth supported by existing order book; medium-term hinges on securing mega contracts. - Strategic investments in infrastructure and diversification into exports strengthen long-term positioning. - Key monitorables: Timely award of P-75I and destroyer projects, margin sustainability, and execution of large-scale capex.