Shares of Mazagon Dock Shipbuilders Limited, a leading public sector defence shipyard, rose after the Ministry of Defence gave the approval for cost negotiations with Thyssenkrupp Marine Systems of Germany for the ₹70,000-crore P-75(I) submarine programme. This decision is a substantial move in India’s naval
Mazagon Dock Shipbuilders Limited (MDL), located in Mumbai, Maharashtra, is a major Indian defence shipyard. The company, through the construction of warships, submarines, offshore platforms, and the provision of related engineering services, is the main contributor to the Indian Navy’s capabilities.
On August 25, 2025, Mazagon Dock’s shares nearly 4% rally to ₹2,799 was made after it was reported that the Ministry of Defence (MoD) gave the company the permission to initiate cost talks with Germany’s Thyssenkrupp Marine Systems (TKMS). The talks are aimed at signing the contract for the manufacturing of six advanced submarines under the ₹70,000-crore Project 75 (India) [P-75(I)] programme, which is considered as one of the most ambitious naval defense projects of India.
Mazagon Dock and Thyssenkrupp are likely to meet and start the talks soon. If it is done in a proper way, the consortium could perhaps get the deal in six months. This project is significant in India’s undersea warfare capabilities development along with her maritime security in the Indian Ocean Region.
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The green light is given on top of the Memorandum of Understanding (MoU) signed between Mazagon Dock and Thyssenkrupp in June 2023. The plan would have Thyssenkrupp taking the lead in submarine engineering and design, while Mazda Dock would be handling the manufacturing, assembly, and delivery to the Indian Navy.
With regard to financial aspects, the company said that a net profit for the first quarter of FY26 was ₹452 crore, thus the profits were 35% down compared to the same period of the last year when it made ₹696 crores. But there is a growth of almost 39% in profits sequentially from Q4 FY25. Operating income was ₹2,626 crore, up 11% year-on-year, although it declined on a sequential basis by more than 17%.
On August 25, at 9:30 a.m., the shares of Mazagon Dock were priced at ₹2,750 on the NSE, which was about 2% higher than the previous day’s closing. In the last three months, the stock has undergone a correction of almost 23%, but it still displays a year-to-date gain of approximately 21%, which points to the continued investor interest in the Indian defence sector.
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The talks on the submarine are another step in the very important process of defence modernization in India and may pave the way for more naval technology collaborations.
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