Shares of Mazagon Dock Shipbuilders Ltd. plunged 10% on Tuesday after the company announced a 54.1% year‑on‑year drop in consolidated net profit to ₹344 crore for the September quarter, down from ₹749 crore in the same period last year. The stock was trading at ₹1,758.50, a 6.2% fall by 3:13 p.m.
Revenue from operations slipped 16.5% to ₹2,446 crore, a decline that pushed EBITDA margin to 8.1%, a steep contraction of 1,560 basis points from 23.7% in Q2 FY26. EBITDA before interest, tax, depreciation and amortisation fell 71.3% to ₹199 crore from ₹694 crore a year earlier.
The board, in its October 27 meeting, also approved an interim dividend of ₹5 per equity share for FY27 and authorized a ₹1,250 crore credit facility from State Bank of India to back a standby letter of credit for subsidiary Colombo Dockyard PLC. Additionally, the company will increase its authorised share capital from ₹323.72 crore to ₹900 crore pending approvals.
Looking ahead, investors will be watching the next quarterly filing for any signs of a turnaround, while the 10% plunge this year has already pushed the stock 29% lower on the fiscal year. Market sentiment remains cautious as the defence sector grapples with contract delays and rising provisioning needs.