Revenue and Profit Growth
Over the six-year period ending March 2025, Mazagon Dock’s net sales have shown a remarkable upward trend, rising from ₹4,917.92 crores in 2020 to ₹11,431.88 crores in 2025. This represents more than a twofold increase, reflecting strong demand and effective execution in its core operations. Correspondingly, the total operating income mirrored this growth, with no other operating income reported, indicating that the bulk of revenue stems from primary business activities.
Operating profit before other income (PBDIT excl. OI) surged from ₹259.65 crores in 2020 to ₹2,089.35 crores in 2025, highlighting improved operational efficiency and cost management. When factoring in other income, operating profit rose to ₹3,200.92 crores in 2025, up from ₹817.81 crores in 2020. This substantial increase underscores the company’s ability to generate income beyond its core operations, contributing to overall profitability.
Profit before tax climbed steadily from ₹727.48 crores in 2020 to ₹3,061.66 crores in 2025, while profit after tax more than sextupled, reaching ₹2,277.34 crores in 2025 from ₹377.67 crores in 2020. Consolidated net profit followed a similar trajectory, rising from ₹471.04 crores to ₹2,413.51 crores over the same period. These figures reflect a strong bottom-line performance, supported by effective tax management and absence of extraordinary or prior period expenses.
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Cost Structure and Margins
The company’s expenditure profile reveals a mixed but generally controlled cost environment. Raw material costs fluctuated, peaking at ₹5,081.64 crores in 2024 before moderating to ₹4,530.66 crores in 2025. Notably, the purchase of finished goods was introduced in 2025 at ₹1,151.64 crores, suggesting a strategic shift or diversification in procurement.
Employee costs steadily increased from ₹652.81 crores in 2021 to ₹978.75 crores in 2025, reflecting workforce expansion or wage inflation. Manufacturing expenses and other expenses also rose, with the latter more than quadrupling from ₹302.37 crores in 2021 to ₹1,340.81 crores in 2025, indicating increased operational activities or overheads.
Despite rising costs, Mazagon Dock improved its operating profit margin (excluding other income) from 5.28% in 2020 to 18.28% in 2025, a testament to enhanced operational leverage and pricing power. Gross profit margin similarly expanded, reaching 27.79% in 2025 from 16.19% in 2020. The profit after tax margin also improved significantly, standing at 19.92% in 2025 compared to 7.68% five years earlier.
Balance Sheet and Financial Position
Mazagon Dock’s balance sheet reflects a solid financial foundation. Shareholder’s funds increased from ₹3,059.38 crores in 2020 to ₹7,939.88 crores in 2025, supported by rising reserves which more than doubled in the same period. The company maintained a debt-free status throughout, with no long-term or short-term borrowings reported, enhancing its financial stability and reducing interest burden.
On the asset side, total assets remained relatively stable around ₹28,000 to ₹29,000 crores from 2022 onwards, with a slight dip in 2025 to ₹28,029.45 crores. Net block of fixed assets increased to ₹1,465.72 crores in 2025, indicating ongoing capital investment. Current assets remained robust, particularly cash and bank balances, which surged from ₹5,798.28 crores in 2020 to ₹16,149.61 crores in 2025, reflecting strong liquidity.
Trade payables and other current liabilities remained substantial but manageable, with total current liabilities around ₹19,823.03 crores in 2025. Deferred tax liabilities increased moderately, consistent with growing profitability. The company’s book value per share showed a positive trend, rising from ₹75.85 in 2020 to ₹196.83 in 2025, signalling enhanced shareholder value.
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Cash Flow and Operational Efficiency
Cash flow analysis reveals a generally positive trend in operating cash flows, with cash flow from operating activities improving from a negative ₹95 crores in 2020 to a positive ₹2,078 crores in 2025. This turnaround indicates enhanced cash generation from core operations, supporting the company’s growth and investment activities.
Investing activities showed variability, with a significant inflow of ₹3,114 crores in 2024 followed by an outflow of ₹1,299 crores in 2025, reflecting fluctuating capital expenditure or asset sales. Financing activities consistently recorded outflows, primarily repayments or dividend payments, amounting to ₹712 crores in 2025.
Net cash inflow was positive in most years, with ₹66 crores in 2025 and a peak of ₹3,350 crores in 2024. The closing cash and cash equivalents rose substantially from ₹483 crores in 2020 to ₹5,285 crores in 2025, underscoring strong liquidity management and financial prudence.
Summary
Overall, Mazagon Dock’s historical performance over the past six years reflects a company on a strong growth path, marked by rising revenues, expanding margins, and solid profitability. Its debt-free status and growing cash reserves enhance its financial resilience, while consistent capital investment supports future capacity expansion. The company’s improving book value per share and earnings per share further highlight its value creation for shareholders. Investors seeking exposure to a steadily growing defence and shipbuilding enterprise may find Mazagon Dock’s track record compelling, though comparative analysis with sector peers is advisable.
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