Mazagon Dock Shipbuilders share price cracks 8%, snaps 7-day winning run as Q4 profit drops 51%

Mazagon Dock Shipbuilders share price in focus today: Shares of Mazagon Dock Shipbuilders, a leading defence public-sector shipyard under the Ministry of Defense (MoD) in India, cracked 8% in early trade deals on Friday, May 30, ending their 6-day winning run to hit the day's low of ₹3,450 as investors appeared disappointed with the company's performance in the March quarter.

The defence major, post-market hours on Thursday, reported a 51% drop in its consolidated net profit at ₹325 crore. In the same period last fiscal year, the company had posted a net profit of ₹663 crore. Its consolidated revenue from operations in the fourth quarter of FY25 rose 2.3% to ₹3,174 crore, compared to ₹3,103.7 crore in the year-ago period.

High employee benefit expenses and sub-contracting expenses weighed on the company's operational performance in the March quarter.  However, the company managed to surpass its full-year guidance on the revenue and margin front.

On the operational front, the defence PSU’s earnings before interest, taxes, depreciation, and amortization (EBITDA) tanked 83% to ₹90 crore in Q4 FY25, compared to ₹524 crore in the year-ago period. Operating margins also tumbled by 1,500 basis points to 3%, down from 17% in the same quarter last year.

Meanwhile, the defence PSU's board recommended a final dividend of ₹2.71 per equity share of ₹5 each fully paid up for the Financial Year 2024-25.

The final dividend, if declared, would be paid within 30 days from the date of its declaration at the Annual General Meeting (AGM) for the financial year ended 31 March 2025, the date of which shall be duly informed.

Mazagon Dock Shipbuilders share price trend

Mazagon Dock Shipbuilders' share price has jumped 17% so far this month, driven by a strong surge in demand for defence stocks on Dalal Street. The rally followed the launch of ‘Operation Sindoor,’ during which India showcased the strength of its indigenously developed defence systems.

If the stock ends the month in the green—which appears likely—it would mark the third consecutive monthly gain. In the previous trading session, the stock crossed the ₹3,700 mark for the first time, hitting a new all-time high of ₹3,778 apiece.

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