Mazagon Dock Q1FY26 Results: Defence PSU Mazagon Dock Shipbuilders reported a mixed set of June quarter numbers post-market hours on Monday, as the broader defence sector faced heavy selling pressure on the bourses.
For Q1 FY26, Mazagon Dock’s consolidated revenue stood at Rs 2,625.59 crore, up 11.35 per cent year-on-year (YoY) from Rs 2,357.02 crore a year ago. However, the company’s net profit declined sharply by 35 per cent YoY to Rs 452.15 crore, compared to Rs 696.10 crore in the same quarter last year.
The profit dip despite higher revenue signals potential cost pressures or execution-related challenges. Investors will be closely watching management commentary for more clarity.
Mazagon Dock Share Price Reaction
Shares of Mazagon Dock closed over 3 per cent lower at Rs 3,052 ahead of the earnings announcement. While the stock has been a multibagger, delivering over 1,950 per cent returns in the last three years, the Q1 miss may weigh on sentiment in Tuesday’s session.
Defence Stocks Under Pressure
The earnings came amid a broader rout in defence stocks. The Nifty India Defence index declined over 2 per cent in Monday’s intra-day trade on the National Stock Exchange (NSE), extending its July decline to 12 per cent, significantly underperforming the benchmark Nifty 50, which has fallen 3.3 per cent this month.
Paras Defence and Space Technologies plunged 10 per cent to Rs 704.70, while Zen Technologies slumped 5 per cent to Rs 1,690.70 — both locked in their respective lower circuits. Other major decliners included Apollo Micro Systems, Data Patterns (India), Dynamatic Technologies, BEML, DCX India, Cochin Shipyard, Garden Reach Shipbuilders & Engineers (GRSE), MTAR Technologies, BEL, and Bharat Dynamics (BDL) — all falling between 3 and 5 per cent.
The Nifty Defence index has now corrected nearly 15 per cent from its all-time high of 9,195.15 hit on June 6, 2025.
Why Defence Stocks Are Falling
The sell-off was triggered in part by disappointing Q1 earnings from select defence players.
Paras Defence posted a muted operational performance, with Q1FY26 revenue rising 11.5 per cent YoY to Rs 93.19 crore but falling 13.9 per cent sequentially. EBITDA dropped 9 per cent YoY to Rs 21.95 crore, with margins compressing to 23.6 per cent from 28.9 per cent a year ago. PAT inched up just 1.1 per cent YoY to Rs 14.27 crore but declined 31.5 per cent sequentially.
Meanwhile, Zen Technologies reported a 37.9 per cent YoY fall in revenue to Rs 158.2 crore, and PAT slipped 33.2 per cent YoY to Rs 53.07 crore. The company attributed the decline to a temporary moderation in topline growth, though management expressed confidence in meeting their Rs 800 crore order inflow guidance for H1FY26, with Rs 150 crore already secured. Notably, Zen also completed a strategic acquisition of a 74 per cent stake in TISA Aerospace, which focuses on loitering munitions and UAVs.
Despite near-term pressures, both companies reiterated their long-term growth outlook, citing strong order books and upcoming government defence procurement plans.
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