Mazagon Dock Shares Fall Nearly 9% As Q4 Profit Sees Sharp Decline

Shares of Mazagon Dock Shipbuilders Ltd.'s fell nearly 9% as its net profit declined 51% in the fourth quarter of financial year 2025. This comes after the shares hit a fresh life high on Thursday.

The public sector company posted a consolidated bottom line of Rs 325.3 crore in the quarter ended March 31, as compared to Rs 663 crore in the same period last year, according to an exchange filing on Thursday.

Revenue came in at Rs 3,174.4 crore, marking a 2.3% growth for the quarter under review as against Rs 3,103.6 crore in the year-ago period.

Operational profitability took a hit due to increase in subcontract cost from Rs 63.5 crore to Rs 589 crore. Margins contracted sharply.

Other income declined to Rs 309 crore from Rs 348 crore last year. Other project related expenses increased four times.

For the whole year, profit jumped 26% to Rs 2,277 crore versus Rs 1,809 crore in FY24.

The company's board has recommended a final dividend of Rs 2.71 per equity share for the financial year 2025.

Shares of Mazagon Dock Shipbuilders fell 8.67% to Rs 3,426.1 apiece on the NSE on Friday. The shares pared losses to trade 4.83% lower at Rs 3,570, compared to a 0.11% decline in the benchmark Nifty 50.

The stock has risen by 115.59% in the last 12 months and 60.98% year-to-date. Total traded volume so far in the day stood at 0.94 times its 30-day average. The relative strength index was at 57.47.

Four out of six analysts tracking the company, maintain a 'buy' rating on the stock, one recommends a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 32.1%.