Mazagon Dock Shipbuilders Ltd (MAZDOCK) Q1 FY27 Results Analysis: PAT Jumps 21.5%, EBITDA Margin Expands 369 bps

Mazagon Dock Shipbuilders Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,942.70 Cr (+12.08% YoY) and PAT growth of +21.51% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Mazdock delivered a solid quarter with 12.08% revenue growth and 369 bps EBITDA margin expansion to 15.18%, meeting its ~15% margin guidance. PAT grew 21.51% YoY, aided by normalized provisions and operating leverage. However, standalone revenue growth was modest at 5.54%, sub-contract costs doubled, and the order book likely depleted further, raising concerns about future revenue visibility.

Key Investment Insights

Key Positives

• Consolidated revenue grew 12.08% YoY to Rs.2,942.70 Cr
• EBITDA grew 48.03% YoY to Rs.446.58 Cr, margin expanded 369 bps to 15.18%
• PAT (owners) grew 21.51% YoY to Rs.549.41 Cr, EPS Rs.13.62 vs Rs.11.21
• Standalone PAT grew 21.57% YoY on 5.54% revenue growth, demonstrating operating leverage
• Management's ~15% EBITDA margin guidance was met (15.18%)
• Colombo Dockyard contributed first full quarter of consolidation

Risk Factors

• Sub-contract costs nearly doubled YoY (+90.79%) to Rs.369.44 Cr, indicating project mix shift to turnkey subcontracting
• Finance costs grew 25.4% YoY and surged 343% QoQ
• Revenue declined 23.6% QoQ, reflecting lumpy milestone-based recognition and potential order book depletion
• No new large orders disclosed; order book likely further depleted from Rs.20,535 Cr (Mar 2026)
• Standalone revenue growth modest at 5.54% YoY, with core shipbuilding business tapering as P17A programme completes