Mazagon Dock targets ₹1 lakh crore order book by FY26

MUMBAI : Mazagon Dock Shipbuilders is targeting an order book of over ₹1 lakh crore by the end of 2025–26 (FY26), according to Ruchir Agrawal, the company’s Director of Finance. The state-owned defence major is counting on the finalisation of the critical P-75I (Project-75 India) submarine contract, with negotiations currently underway with the Indian Navy, to drive this sharp expansion in its order pipeline.

Speaking on the company’s outlook, Agrawal provided clarity on the path to this ambitious target. He stated that the order book, which stood at approximately ₹27,400 crore as of September 30, has since depleted to around ₹25,000 crore due to execution. The key to reaching the ₹1 lakh crore milestone lies in the P-75I programme, which involves the construction of six advanced submarines.

“The negotiation for 75I is already on, and before the close of this financial year, we should sign the deal,” Agrawal said. “If everything goes well, our order book should be more than a lakh crore… by 2025-26 (FY26) end.” He refrained from disclosing the potential value of the P-75I contract, citing the ongoing negotiation process.

Agrawal also distinguished this from the P-75 Scorpene submarine order, which has seen delays. He clarified that while the Scorpene deal is still active, the company has not yet been called for negotiations and expects to hear more definitive news only by the end of FY26 or early 2026-27 (FY27).

On the financial front, Mazagon Dock is maintaining its guidance despite some operational challenges. The company is holding to its projection of a ₹12,500 crore topline and 15% margins for FY26. “We are holding with that. And we expect that we should meet that, although challenges are there. This year, the monsoon was a little bit extended, but we expect that we will be meeting these targets,” Agrawal said, expressing confidence in achieving the goals.

Regarding the company’s export business, Agrawal acknowledged it remains a small part of the portfolio, with a single order of around ₹715 crore currently in hand, which he stated is loss-making. He indicated that the company would likely pursue more export orders as India’s shipping infrastructure capabilities expand.

Agrawal does not expect any significant reversal of provisions made for multi-purpose vessels (MPV) and coast guard vessels in the upcoming October-December quarter of 2025 (Q3FY26) and January-March quarter of 2026 (Q4FY26). He also does not expect any further increase in these provisions, suggesting a stable outlook on this front.

The company, which has a market capitalisation of around ₹1,01,913.96 crore, has seen its shares gain nearly 9% over the past year,