Mazagon Dock lifts margin, but other income drives nearly half of PBT
Consolidated profit rose +21.74% YoY as revenue outpaced expenses, though interest costs surged and the margin remained below Q3FY26 levels.
Filed 30 Jul 2026, 18:28 IST · after market close · Mazagon Dock Shipbuilders Ltd (MAZDOCK)
Key takeaways
- Revenue grew +12.08% YoY while expenses grew +7.41%, lifting operating margin by 3.69 percentage points.
- Other income contributed 48.51% of profit before tax, making reported profit quality a key caveat.
- Operating margin recovered to 15.18% from 14.10% QoQ even as revenue fell -23.57%.
Price around the results
Revenue growth translated into a sharper operating profit increase
On a consolidated basis, revenue grew +12.08% YoY while expenses rose more slowly at +7.41%, allowing operating profit to increase +48.03%. Sequentially, revenue fell -23.57%, but operating profit declined less at -17.74% because expenses contracted -24.53%. Net profit still rose +21.74% YoY, while it fell -18.35% QoQ.
Margin improved, but profit relied heavily on non-operating income
Operating margin widened 3.69 percentage points YoY and 1.08 percentage points QoQ because costs grew more slowly than revenue on both comparisons. Interest expense increased +3967.89% YoY and +342.96% QoQ, reaching Rs 44.34 cr. Other income accounted for 48.51% of profit before tax, while the YoY tax-rate reduction of 0.55 percentage points gave net profit a modest lift.
Margin recovered from Q4 but stayed below the Q3 peak
The operating margin trend improved from 14.10% in Q4FY26 to 15.18% in Q1FY27, after reaching 24.63% in Q3FY26. The quarter's margin was 0.54 percentage points above the 14.64% median for the 31 Industrials peers that had reported.
The filing came after market close; recent reactions have mostly been negative
Mazagon Dock filed these consolidated results after market close, so there was no immediate market reaction in the supplied data. After its last eight results, the stock moved down six times and up twice, with a median absolute move of 1.94%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,943 cr | ₹3,850 cr | -23.57% | +12.08% |
| Other income | ₹352 cr | ₹325 cr | +8.27% | +9.13% |
| Expenses | ₹2,496 cr | ₹3,308 cr | -24.53% | +7.41% |
| Operating profit | ₹447 cr | ₹543 cr | -17.74% | +48.03% |
| Operating margin (%) | 15.18% | 14.10% | — | — |
| Interest | ₹44 cr | ₹10 cr | +342.96% | +3967.89% |
| Depreciation | ₹29 cr | ₹23 cr | +26.62% | +25.63% |
| Profit before tax | ₹725 cr | ₹835 cr | -13.16% | +20.87% |
| Tax | ₹174 cr | ₹161 cr | +8.62% | +18.19% |
| Net profit | ₹550 cr | ₹674 cr | -18.35% | +21.74% |
| EPS (₹) | ₹13.62 | ₹16.84 | -19.12% | +21.50% |
Operating margin of 15.18% compares with a Industrials sector median of 14.64% across 31 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 15.18% after its recovery from 14.10% in Q4FY26.
- Whether other income's contribution to profit before tax falls from 48.51%.
- The next quarter's interest expense compared with Rs 44.34 cr.