Ladies and gentlemen, good day and welcome to Mazagon Dock Shipbuilders Limited Q2 FY 2026 earnings conference call hosted by Nirmal Bang Equities. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jyoti. Thank you. And over to you, ma'am.
Thank you, Trisha. Good evening everyone. On behalf of Nirmal Bang Institutional Equities, I welcome you all to the Q2 FY 2026 earnings conference call with the management of Mazagon Dock Shipbuilders Limited.
We have with us Captain Jagmohan, Chairman and Managing Director; Shri Biju George, Director, Shipbuilding; Commander Vasudev Puranik, Director, Corporate Planning and Personnel; Ruchir Agrawal, Director, Finance and CFO; and Commodore S.B. Jamgaonkar, Director, Submarine and Heavy Engineering. Without further delay, I would now request Captain Jagmohan sir to start with his opening comments after which we can open the floor for questions. Thank you. And over to you, sir.
Good afternoon everyone and welcome to Mazagon Dock Shipbuilders Limited Quarter 2 and half yearly earnings call for the period ended 30th September 2025. My name is Captain Jagmohan, Chairman and Managing Director and I'm joined today by Shri Ruchir Agrawal, Director, Finance and CFO, Shri Biju George, Director, Shipbuilding, Commander Vasudev Puranik, Director, Corporate Planning and Personnel, Commodore Shailesh Jamgaonkar, Director, Submarine and Heavy Engineering. Before we begin, I would like to remind everyone that today's discussion may include forward looking statements as defined under applicable securities law. These statements are based on our current expectations and projections about future events and financial trends and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. We undertake no obligation to update these forward looking statements except as required by law.
For all detailed discussions of these risks and uncertainties, please refer to our latest financial results, press release and regulatory filings available on the Stock Exchange website and our company website. As a listed entity in India, we are committed to adhering to the highest standards of corporate governance and transparency as mandated by the SEBI Regulations 2015. This call is being conducted in compliance with these regulations, ensuring timely and equitable dissemination of information to all our stakeholders. We are pleased to share our financial and operational performance for Quarter 2 and the half year ended 30th September 2025. During this call we will provide an overview of our financial results, discuss key operational highlights and share our outlook for the upcoming period. Following our presentation, we will open the floor for your questions.
We request you to limit your questions to two per participant in the initial round to ensure everyone gets an opportunity. Now I would like to hand over to Mr. Ruchir Agrawal, Director, Finance and CFO, who will walk you through the detailed financial performance.
Good afternoon. I will be presenting the quarterly financial performance for Q2 2025-26. As far as standalone are concerned, we recorded our revenue from operation of INR 2,929 crore, which is 6% above the last year's performance, last year corresponding year's performance, and the total income recorded at INR 3,205 crore, which is also 6% higher to corresponding previous year's figures. As far as the PBT is concerned, it is INR 939 crore, and we sit at a PAT of INR 715 crore, which is also 27% above the PBT corresponding period of corresponding quarter, and our net worth stood at INR 8,083 crore, and our earning per share for standalone is INR 17.73 per share. If we see our consolidated performance, our PBT is INR 934 crore, which is up by 26%.
For our consolidation, we are merging the results of Goa Shipward, for which we hold our 46%-47% shares as investment, and on consolidated basis, the PAT is INR 749 crore, and our net worth stood at INR 8,910 crore, which is 22% in comparison to last year's quarter, and the earning per share is INR 18.58 per share. If I talk about the half year's performance, the revenue from operations stood at INR 5,555 crore, which is 9% above the corresponding last year's quarter, corresponding last year half year, and the total income is around INR 6,155 crore. PBT stands at INR 1,506 crore, and PAT is at INR 1,135 crore, which is both PBT and PAT are 8% less than the previous half year's amount. The reason for that is in our Q4 2024-2025 and Q1 of 2025-2026, we had booked INR 1,000 crore of provisions for onerous contracts.
The two contracts, one was for Coast Guard and another was for MPV. That is why this is the reason for dip in our PBT and PAT, if you consider on half year comparison basis. If you take the consolidated figure for half year performance, our PBT stands at INR 1,500 crore and PAT at INR 1,202 crore, with an earning per share of INR 29.79.
That's all from our side.
Shall we open the floor for questions?
Yeah, go ahead.
Okay. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, kindly press one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Atul Tiwari from JPMorgan. Please go ahead, Mr. Tiwari.
Yeah, thank you, sir. My first question is on the s tatus of P7 5, the three Scorpene-class submarine order. Because earlier, I think in the earlier conference calls you had indicated that the order should be signed very soon, possibly in the first half of this financial year.
Yeah. For the additional submarines of P 75, the commercial negotiations with the Ministry of Defense were completed a few months ago. The project was just at the sanction stage. Beyond that, we have not been kept informed. We are still hopeful that in the coming months we should be able to sign the contract for the three additional Scorpene-class submarines.
Okay, sir. For the P7 5 (I), any indication of the timeline by when the negotiations will be completed and the order could be placed on the company?
The commercial negotiations are on at the moment. We have already commenced. I think two of the rounds are over. We anticipate that the commercial negotiations will be completed by this calendar year. We are hopeful that we will be able to sign the contract by this financial year.
Okay, I will come back. Thank you.
The next question is from the line of Krishna Doshi from Ashika Institutional Equities. Please go ahead, Krishna Doshi.
Hi. Can you hear me?
Yes.
Sir, I just wanted some guidance on the revenue front as we are seeing that, you know, a lot of major product projects have come to an end. Right now the order book stands at around INR 27,415. I just wanted to understand what the r evenue growth is going to look like g oing ahead until we receive these major orders of submarines.
We anticipate that this year we will have revenue of approximately INR 12,500 crore or so. The coming year also we should have maybe another 5% growth over that. Beyond that, once the submarine projects kick in, we should have a considerable improvement both in our revenue as well as our profits.
Okay, sir. The second question would be, recently we saw this BAC approval of around INR 79,000 crore, where Landing Platform Dock is also supposed to be a major chunk of it. What kind of opportunities are we seeing there?
Actually, as we speak, we have signed an exclusive MoU with Swan Shipyard, which has a very large infrastructure because these ships are quite large, around 200 meters or so in length. We will be bidding for this project jointly with Swan Shipyard. We anticipate that we will bring in the synergies of public private partnership, where all our capabilities in design, weapon integration, project management will tie up with the flexibility of the private player, both in his infrastructure as well as his procurement. We anticipate that we will be very well placed to win this order.
Okay, thank you, sir. Thank you. That's it from my side.
Thank you. The next question is from the line of Nehal Mehta from Shubkam Ventures. Please go ahead.
Hello, am I audible?
Yeah.
Yeah. Thank you for taking my question. My first question is that given that substantial execution of P17 order will happen in the current financial year, how do you see your margin and revenue growth for the next two years? My second question would be that once your P75 order comes in, when will the execution of the order commence?
The P17A, we will deliver the third ship this calendar year, but we will have the fourth ship going into the next financial year as well. So a fter that, we will have the guarantee period as well. The P17A project will continue for the next financial year as well. The revenue and profit margins which come from that project will be visible for this financial year as well as the next. Thereafter, we will have maybe a few months where we will have only the Coast Guard and the MPV project, as well as the offshore project where the m argins are slightly less.
However, we anticipate that if we are able to sign the submarine contracts quickly, where we once again anticipate the margins are higher, because these are projects which we are very familiar with, we anticipate our productivity and operational efficiency to be higher, and therefore the margins also will be higher.
Okay, and my second question would be for P 75. Like, when would you expect the commencement of the order once you receive it?
See, if it is the additional submarine, we should be able to commence immediately because it is a follow-on of the submarines which we have already executed, six of which we have delivered to the Navy. The 75 (I) has a year's preparatory period, but we have already started to work on it. 75 (I) will start earning revenue maybe six months after signing the contract. For 75, maybe immediately after signing of the contract, we should be able to register revenue.
Okay. Okay, thank you. Thank you for taking my questions.
Thank you. The next question is from the line of Rupam Jaiswal from INVESTWELL . Please go ahead.
Hello.
Yes.
Yes. Hi sir. Actually, I wanted to know about this new partnership. What is this terming a term sheet or anything which you have signed with Swan Defence ? Could you elaborate on how you are going to leverage the capacity and what kind of partnership you are going to leverage? Their different capacity for different ships and all. Could you just elaborate on that?
The present agreement or the memorandum of understanding that we have signed with them is primarily for LPD only. However, going forward we may collaborate with them for other large commercial ships as well. Here, what we intend to do, although the teaming agreement has not yet come in place, we anticipate that we will bid. We will be the bidder for the project with the Navy and [DHI] or the Swan Defence Shipyard will work at the back end. In fact, we will use their very large infrastructure because the LPD, the Landing Platform Dock, is a large vessel and to be more productively or more efficiently manufactured or constructed at their site. We will bring in our experience in project management, weapon integration, and design. We will be bringing the synergies of both public sector shipyard and private shipyards, flexibility in procurement, etc.
We expect that we will offer a very good functional ship at a very attractive price. Therefore, we think we are very well positioned to win this nearly INR 40,000 crore order.
One more thing, I got that point also. In this, the shipyard, the kind of capacity that Swan is holding, you are saying that you would be leveraging their capacity for commercial ships also and for this Landing Duck Platform . What would be the revenue? How will the revenue scenario be? What kind of revenue would you be booking? Is this kind of a rental agreement that you would take up with them and you will be just giving them rental for that, using that shipyard or anything like that? I want to know what kind of revenue scenario will be in this kind of agreement.
No, it's too early to say. You see, we are letting the RFP come out, and then when we make our bid, then we will have property a greement between us. MDL and Swan. It will be a win-win scenario for both shipyards, both in terms of revenue and profits. It is too early to say at this stage.
Okay, thank you.
Thank you. The next question is from the line of Raj Mandavkar from NVS Brokerage . Please go ahead.
Hello.
Yes, please.
Yeah, actually myself from NVS Brokerage. My question was about revenue guidance and margin guidance. It is more or less covered. Thank you.
Okay.
Thank you. The next question is from the line of Anupam Goswami from SUD Life. Please go ahead.
On the first side, operating cash flow n egative and lower from last year. How do we see that? How do we read that?
Come again?
Our operating cash flow turned negative this time, and quite steep sharp decline. How do we read that?
This is primarily because we got some amount in flexi from Navy in the flex account in March 2025, which has been used this year. You are seeing a negative cash flow on that account. Otherwise, our margins are intact and we expect to perform better in quarters to come.
Okay, so my next question on the execution. Now that almost all of our submarine orders are over and mostly left with Coast Guard and [OMVP] platforms, how do we see the margin f or the dis, FY 2026 and 2027?
As far as Coast Guard orders are concerned. Wherever these provision for the provision for last two quarters and for the ONGC contract, that is a cost per contract and we will be getting the margins as per the contract. One PRP contract is a bit price contract and we expect that we will be completing in the cost of your bid to the ONGC.
Okay, thank you sir. Just last, if you can mention about the potential out of the pipeline. What is there?
The Navy itself is coming out with multiple projects. For example, like what we just discussed, the Landing Platform Dock which will be around INR 35,000 crore-INR 40,000 crore. We have the [MCMB] which is around INR 40,000 crore. The 17 Bravo ships which will be again another INR 50,000 crore-INR 60,000 crore. I think the Navy is going to come out with a destroyer class project as well, either the P15B or the next generation destroyer which will be costing maybe around INR 70,000 crore-INR 80,000 crore. Overall, the function of the Navy is considerable and we anticipate that we are ideally placed to win a sizable part of that order.
Okay, thank you.
Thank you. The next question is from the line of Atul Tiwari from JP Morgan. Please go ahead.
Yeah, thank you sir for the repeat opportunity. My question is on your Colombo Dockyard acquisition. Could you shed some light on what are your plans for that asset and is the acquisition complete? If yes, how much of its revenue and EBITDA and the PBT has been booked in this quarter.
The acquisition is still not complete and we are still not the shareholders of that company. We expect that the IT approvals are online and the final approval for rights issue will be coming in by this weekend. The [EGM] for calling the rights issue is expected by this month end. By going by that time, we expect that we will be the shareholders by start of the next month. After that we will be looking in their management for control and execution.
What are your plans? I mean, what kind of ships will you be manufacturing there?
Into commercial shipbuilding. Half the revenue comes from ship repair. We are intending to ramp up their capacity. Recently they have revenue of approximately INR 1,000 crore. We anticipate that in the next year or so we will be able to ramp it up to INR 1,500 crore. They have excellent production processes because they have a long-term association with their past owners, Onomichi Shipyard from Japan, and they have good clientele from Europe and Scandinavia. We will bring in our expertise as well. The large amount of repairs that is going from India will further increase. We anticipate that we will be in the next two years able to increase the revenue by around 50%.
Can you comment on what kind of margins and profit they are making, and how much it can increase?
The information we have as per their balance sheet is around 15% margin. There are some losses, and primarily vessel categories which they are building are bulk carriers and cable laying vessels. For cable laying vessels, they are anticipating new orders of also this panel.
Okay, thank you.
Thank you. The next question comes from the line of Harshit Kapadia from Elara Securities. Please go ahead.
Thanks for the opportunity, sir. I think the margins were very healthy. A couple of questions from my side. First, starting on the LPD. Who is the technology partner for the Landing Platform Dock for you, sir?
Yes, we have not decided, waiting for the RFP. Let the RFP be out. After that, we will look at the various possibilities. Discussion with Swan, we will.
Fair enough s ir, there are media rumors that the three submarine order for P 75 may get converted into nine numbers of P 75. Do you think is there a possibility that the reason why the government is holding that particular order?
We have not received any communication from the Navy or from Modi. We would not like to speculate on that.
Okay. Sir, just one question. On the submarine execution part, sir, is the submarine execution similar to having a bell shape to how the ship is being built? That is, in the first few years you have very low revenue booking, and then in the next couple of years the revenue booking increases and then again falls. Is that how it does?
By and large, yes, however, since we have already a lot of experience in the Project 75, we should be able to shorten that escrow.
It generally takes around nine years. How much can it be shortened? Like, will it be seven years?
No, we will try and, you know, instead of that steep S curve or what you call the bell curve, we will try and, you know, make the slope a little more manageable so that the revenues are spread through the entire build period.
Fine. Up, sir. Any update on the repair order from the U.S. Navy or any other navy globally that we were earlier looking at?
We are registered with the MSRA and depending upon when the tenders come, we are participating. Wherever our infrastructure can take, we are participating. Otherwise, we are not participating. Off late, nothing which is suitable for infrastructure has been queried by the U.S. side.
Understood, sir. Lastly, on the commercial ship we have tied up with Swan as you mentioned, you know, who would be the technology partner here with us as well for commercial ships? What category of commercial ships are you looking to, you know, build?
Today's teaming agreement is exclusively for Landing Platform Dock. That is not a commercial vessel. Mentioning is this synergy can pave way for further collaboration depending upon the market scenario for commercial vessels. Right now nothing is crystallized specifically for commercial vessels with Swan.
Okay. The order pipeline which you mentioned is of a very huge value, but these will get executed over let's say a seven year time frame. What is the pipeline that we have on a very short term basis? Can you highlight some short cycle orders or small size orders which you expect to receive in this year or next year?
Right now we are expecting around 27 ships from Coast Guard as well as the export orders. For the small segment, right now we are not aggressively bidding because we have the other ships also to complete. As it progresses, we will look at smaller ships also, what can be accommodated right now. Therefore, we are unable to, at this juncture, we are not quoted for any small segment.
In addition to that, you see, the government has aggregated the demand for commercial ships. Almost 112 vessels are likely to come out from medium range tankers, platform supply vessels, VLCC and all that. While we are in the process of setting up a mega shipyard, [Sandra] down south in. In the meanwhile, whatever opportunity comes, we are going to pitch in either from the tenders that are coming from the Shipping Corporation of India or ONGC or IOCL, one of the petroleum and natural gas PSUs. Those are short cycle projects. We anticipate that we will get some orders from that part as well.
Is there any tentative size that you can highlight, like INR 1,000 crore approximately?
In the immediate future, we anticipate something like that. It will all depend on how tenders come out and how quickly we are a ble to place orders and all that.
Okay, the final question on margin, I probably missed your guidance on margin. What would be the stable margin that we should expect in FY 2027? FY 2026 and FY 2027 since we have t hat visibility.
Broadly for the shipbuilding sector, the margins that are expected for an operationally efficient shipyard is around 15%. However, the revenue and the profit of a shipyard depends on first the order book, the type of projects, and what stage of execution of these projects the shipyard is undertaking. There are several factors. For example, MDL has very high efficiency in design and construction of frigates, destroyers, and submarines. If it are these projects, then our operational efficiencies are high, productivity is high, and accordingly the margins also will be higher. If it is some newer vessels, it m ay not necessarily be that high, but on an average we can unlock around 15%+ margins.
Great, great to know, sir. Thank you very much for answering all the questions, answering all the questions patiently. Wishing you all the best.
Thank you. The next question comes from the line of Sagar from Invesco Mutual Fund. Please go ahead.
Yeah, thank you so much for taking my question. My first question is on the order influence. While I understand that there are three follow-on submarines on the P 75 side followed by t he Landing P latform Dock, can you guide us on the sequence in which they can come to Mazagon Dock Limited.
Difficult to say if 75 additional submarines to come. It could come immediately. We anticipate 75 (I) where the negotiations are ongoing. We anticipate that before the financial year ending we should have signed the contract for the 75 (I). LPD will probably take longer. The DSE has just given approval. The RFP itself to issue will take maybe four to five months, and thereafter the L1 determination and order placement will take another six months. Maybe a year from now.
Okay, on the defense side, these are the only three large projects that are on the horizon.
Actually, the P17B Frigate RFP is likely to come out much earlier. It will probably come out anytime next month or definitely in this calendar year. That's what the Navy has broadly indicated. That order is likely to come out much faster, maybe by the third quarter of the calendar year.
Next. Sure. Sir, on the Colombo acquisition, what w ill be our total cash outgo f rom the balance sheet in terms of.
That will depend on the rights issue and mandatory offer by the existing shareholders. We anticipate anywhere between 51% and maybe around 75% where we will have a total shareholding. If it is a full 100% shareholding to be taken by MDL, we anticipate INR 450 crore outlook.
Okay, thank you so much. That is it from my seat.
Thank you. The next question comes from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Good evening everyone and thanks for the opportunity. Just a couple of questions from my side. The first one is on the provision. If I see the provisions are negative in this quarter, is it due to the LDs that were written back in this quarter? If so, can you highlight the quantum of LDs that were written back?
We have written that LD of INR 102 crore.
This pertains to which submarine, sir?
It is. This is pertaining to P17A second ship.
Okay. Are there some more LDs that we can expect? You know that we had, I mean, claimed and they are in dispute and they can be rolled back going ahead?
Yes, we actually anticipate that we will be getting waiver of LD of the submarine project. There's one submarine that is still pending. The case is still pending with [Modi], and we expect favorable response from the [Modi] on that.
That would be around INR 120 crore.
Pardon?
That would be around INR 120 crore.
Yes, around INR 100 crore.
Okay. The second question is just drawing on Harshit's question earlier. You mentioned that the stable margins could be 15%. What are these margins? Are we talking about EBITDA margin, operating margin, and does it include other income also? I just wanted to get a little bit more clarity around this margin.
It will depend upon the completion of the project shipping industries at the end of the project when there are not much liabilities left on account of warranties. The margins are high. Now you can see in our balance sheet also we are showing a margin about 25% or 30%. That will not be the case for the new projects coming in where we are booking the actual value of production. In that case we expect that our margins will be around 12%- 15%. This is only when we are at the completion of the project and we book all the unclaimed liabilities. Our margins are high.
These are EBITDA margins. Just for clarity.
If it is EBITDA that goes to plant and PBT, they say it is all the same, it is coming from the top line. I don't think it will be having any impact because we are not having any much borrowing. It is almost the same.
Okay, just to stretch it further, sir, and this will be my last question. I mean, 8, 10 years back, Mazagon used to have an EBITDA margin of 5%. Now, from there, we have reached a point where the margins are much healthier. How much of the increase would you attribute to your internal efficiencies? Essentially, then, that would stay with the company regardless of the orders that we get.
The efficiency and the quality of workmanship both contribute to our higher margins at a completion of the project. When there are no guaranteed defects in the product constructed, that results into a margin at a completion of the project. That is why initially when the project starts and we start booking on a conservative basis, the margins are less. As we progress and we complete the project, the margin tends to be higher.
Okay, got it, sir. Thank you. Thank you so much, and all the best.
Thank you. The next question is from the line of Sanjeev Zarbade from Antique Stock Broking. Please go ahead.
Yeah, thanks for taking my question. Sir, m y question was regarding the completion timeline f or the ONGC order which is around INR 4,800 crore. We have seen that the AIP order has not moved. One can just take a look at that.
See, the ONGC contracts can be done only during the periods where the monsoon is not there. That is from mid-October to mid-May. We anticipate that a large extent of the INR 4,800 crore DSF-II project we should be able to complete this season, that is up to May. However, we will not complete the execution of that. We will probably have spillover onto the next season, which will be from mid-October in 2026. What was the second question?
Second question was regarding our MoU with the Naval Group for making submarines for third party friendly countries. Just wanted to know when we can, you know, express some concrete maybe order, or also do we have the capacity to take further submarine orders if the three additional submarine order also gets internal.
We have the capacity to undertake the construction of 11 submarines simultaneously. Even with three additional Scorpene-class submarines and six 75 (I), we will have spare capacity. With regard to the question of handling export orders, we already have an MoU with Naval Group for exploring export opportunities for Asian countries. We have once again signed an exclusive MoU with one, I don't want to take the name of the country, one particular country where we will bid together for the anticipated project in the country.
Okay sir, if I can take one or two more questions. Wanted to know about the status of the mine countermeasure vessel because this order has received even sometime back. What could be the status of this order?
We expect RFP in the next three to four months. After, I think the next RFP from the Navy will be P17 Bravo. The two months we anticipate maybe somewhere in February or March. We anticipate the RFP.
Yes. Sir, lastly, if I can, the P17A figure pending order, this is INR 11,490 crore. How much of that would be the, y ou know, the guaranteed shares, which is.
10% of the ship cost. That value is, I'll have to work out.
Okay. Okay, no problem, sir. That's it for me. Thank you.
Thank you. The next question comes from the line of Dipen Vakil from PhillipCapital. Please go ahead.
Thank you for the opportunity s ir, my first question is on the lines of CapEx. Can you tell us what kind of C apEx you have incurred so far in the first half and what you are expecting to do in the second half? Also, an update on the Nhava Sheva CapEx that you are planning on incurring.
This full financial year, we are anticipating CapEx and, in fact, we will have a, we will do a CapEx of INR 500 crore and that is primarily for the floating dock, which is almost halfway through. We anticipate that by end of this financial year we will complete that. Now, going forward, we will be doing some CapEx on both the Nhava Yard as well as the South Yard Annex, which we have leased from Bonga Port [Trust]. These will be primarily to remove the bottlenecks that we have in o ur. Present production activities.
We are looking at total CapEx of around INR 1,000 crore for Nhava and South Yard Annex and another INR 1,000 crore for the infrastructure for 75 (I) submarine. Our main CapEx going forward for the next five years will be approximately INR 5,000 crore for a greenfield shipyard which we intend to set up in Tuticorin in Tamil Nadu for commercial shipbuilding. The government has come up with a slew of measures, incentives, and policy measures which makes commercial shipbuilding attractive and profitable. We intend to tie up with maybe a Korean or a Japanese shipyard and probably a private player in India to set up this large shipyard, which we intend to complete the first phase with approximate investment of around INR 5,000 crore in the next four to five years.
This year we're expecting a CapEx of INR 500 crore and INR 5,000 crore over the next three to four years. Sir, this new yard you mentioned INR 1,000 crore. Will that also be done in this year, next year, or what would be the timeline for that?
It's not INR 1,000 crore for the Nhava yard. It will be INR 1,000 crore put together for Nhava and the South Yard Annex. We have already done some work close to around INR 75 crore. We have already done a CapEx there. It will be ongoing because we have already started to construct two Coast Guard projects there as well as the offshore projects. It will be simultaneous investments there while we are undertaking the projects. It will probably take another two to three years.
Got it, sir. My last question is on provisions. How do you see provisions going for, say, the second half of this year? Do you see any? The provisions that you mentioned that you may be receiving, do you expect that to come in this year, or do you think that it is below to next year?
We anticipate this year, maybe in the last quarter.
Got it, sir. That's all from my side. Thank you so much for answering my questions and all the rest.
Thank you. The next question comes from the line of Harshit Kapadia from Elara Securities. Please go ahead.
Yes sir. Thanks for giving me the opportunity. Just wanted to, since you have mentioned the INR 5,000 crore investment in Tuticorin for commercial ships, could you highlight what types of ships that you are looking at? You know, is it bulk, is it crude, is it made to LNG? Any color on that would be helpful.
It is going to be dual use. In fact, we are looking at both commercial as well as naval applications there. Now, let us say, for example, the need comes to the requirement for the third aircraft carrier. We could, if the timeline suits, we could make the aircraft carrier there. However, for commercial vessels, we will first look at the domestic market. For the domestic market, the Ministry of Shipping has already aggregated the demand from all the oil and natural gas PSUs, approximately 112 vessels. They are primarily going to start off with platform supply vessels and MR tankers. Going forward, we will be looking at very large gas carriers and very large crude carriers.
Understood, sir. Okay. This clarifies a lot. Thank you. Thank you very much.
Thank you. The next question is from the line of Anirudh Murarka from Continental. Please go ahead.
Am I heard?
Yes.
Sir. Congratulations on a very stable set of numbers. My question was regarding that h ow do you near time future look to announce shareholder value for a retail investor? Thank you.
We anticipate to get more orders, print them efficiently.
There is some disturbance.
Could I repeat my question?
I heard you. How we reward the shareholders is to perform well, add more orders, and execute them efficiently.
Sorry to interrupt, sir. Mr. An, can you please mute your line.
It's muted.
I hope you heard the answer.
Have a following follow-up question?
No, that will be all. Okay, I'll look at the transcript. No issues.
Thank you. The next question comes from the line of Santosh, who's an individual investor. Please go ahead.
Thank you. The question is on subcontract expense that we see in the document. Can you make some details on this? Whether it will be reducing in the upcoming quarters or whether it will be changed to the total percent of those claims.
You see the subcontract costs are high this quarter, primarily because of the offshore projects. The offshore projects, our execution is virtually turnkey outsourcing, so therefore the subcontract prices are high. It will depend on the nature of project. For example, if we have the P17B project, the subcontracting will be much lower compared to the order value. It will depend on project to project on how we bid and what our project management view is for those.
Yeah. Thank you, sir. That's from my side.
Thank you. The next question is from the line of Naveen Shetty from [Nirmal Bang Institutional Equities]. Please go ahead.
Sorry, this question was already asked. Just wanted to get a sense on the current order book is around INR 27,000 crore. Any outlook that you can give for maybe for the next FY 2026 for the whole year and maybe FY 2027.
You mean the order book?
Yeah.
In excess of INR 100,000.
By which year?
Sir, by the next financial year. 20 27, sir.
2027. Okay. Okay. By 2027. Let's. Okay. Thank you.
Thank you. The next question is from the line of Rakesh Roy from [Boring AMC] . Please go ahead.
Hi sir. My first question regarding government is pursuing commercial sitting, sir. What is your view? Because you are a new player in this side, and we have very few companies in India who make the seats, what is your view on this [sitting]?
While we are known as a shipbuilder making destroyers, frigates, and submarines, we have a rich legacy in commercial shipbuilding. We have built over 800 ships, probably the shipyard which has built the largest number of commercial ships in the country. We are not new to this.
However. Yes, in the last few years we have once again re-entered this and we started with the multi-purpose vessel which we are building for our Denmark client. We have also done the acquisition of the Colombo Dockyard with a view of moving into commercial shipbuilding thereafter. The government has come out with a lot of incentives and initiatives for commercial shipbuilding. We, as the largest shipyard and as an arm of the extended arm of the government, feel that it is both strategically as well as makes a lot of business sense to venture into commercial shipbuilding. We are setting up a large commercial or a large shipyard primarily to look at commercial shipbuilding. Depending upon the types of projects, we could even look at defense projects there.
Okay, the same question sir. If you look from 7 year now for FY 2032, how does your revenue mix like a difference of commercial from for next five years, seven years, after seven years?
That good question. You see, we would like to de-risk. We do not want to depend on a single large customer like the Indian Navy. Presently, probably 80%- 90% of our order book comes from the Indian Navy. We have actually started to diversify by moving into offshore. We have almost INR 7,000 crore worth of orders from ONGC. We intend to have a healthy mix of offshore projects, commercial projects, and defense projects. The exact percentage would be difficult to say. We would like to diversify and de-risk from, you know, depending on a very limited number of customers.
Okay. Last question for [Goliath crane] . What. Any idea?
Is the plan to develop it into a greenfield shipyard where vessels like very large crude carriers, VLCC, can be.
Okay, in terms of [lifting] tonnage, sir.
Around 300,000 tonnage.
Yeah, 300,000 deadweight tonnage.
Or 300,000. Okay. Right sir.
Yes.
Okay, thank you, sir.
300+ would be the length of the ship.
Okay, 300 is the length of the ship and that message is being by 300,000.
300,000? Yeah. That is a typical VLCC volume.
Yeah, 300,000 is very big, sir. Thank you, sir.
Thank you. The next question comes from the line of Shivam Parikh from Value Wise Wealth Management. Please go ahead.
Hi sir, thank you for addressing my question. My question was there was an MoU done by Mazagon Dock with Mitsui Shipping Lines of Japan. Could you throw some lines on that, and if any potential order flows do come in from Mitsui Shipping Lines, will it be done at Colombo Shipyard or at your Indian shipyards? Thanks.
I don't recollect any MoU with Mitsui.
That was a recent news, by like Indian Navy had done some discussions with Japan for the ship repair, and in that, it was, in that news it was shown that Mazagon Dock had done an MoU with Mitsui Shipping Lines of Japan.
There was, you know, it's very, very early stages of discussion where the Navy is looking at having a common destroyer design between India and Japan. These are very, very early stages. We are not signed in the MoU.
Okay, yeah. Thank you so much.
Thank you. The next question comes from the line of Rupam Jaiswal from INVESTWELL . Please go ahead.
Hi sir, actually thank you for the follow up question. I wanted to ask about the new greenfield shipyard or like the shipyard which you will be investing in the south of India. What would be the total CapEx plan and like what kind of capacity are you looking out?
The government is looking at setting up these mega shipbuilding clusters, and they want shipyards of scale with a throughput or a capacity of 1 million- 1.5 million per mega, these mega shipbuilding clusters. We intend to set up one of them in Tuticorin. We will approximately require a land parcel of 1,000, and the CapEx will be, actually going forward, to set up a large shipyard like this based on data that is available, anywhere between INR 15,000 crore- INR 18,000 crore. This will be done in various phases. The first phase, which we intend to complete maybe in the next three to four years, will be around INR 5,000 crore.
The total plan is like this will go for 10- 12 years. It will fully depend upon how we.
Get government clearance, environment clearance, those issues because the trunk infrastructure on land, waterfront, etc. has to be done by the state government. How quickly they do it, w e'll be able to do it. Be able to finish accordingly.
Okay sir. One more last thing, like in the LPD side, have we got the technical partner with us to bid on this project?
Not yet. As answered earlier, we will have to see whether there is a requirement for having a design partner or not. The earlier RFP that the Navy had come out with several years ago required the Indian shipyards to partner with one of the European shipyards who have the LPD already. I am not sure that this requirement will be there or not anymore, because there's a likelihood, as all our shipyards now have the design competence and capability of designing and constructing these ships. There is probably no requirement for a partner. Except t he agreement that we already have with Swan f or constructing these vessels.
Yes, sir. Only last question around this only. For these orders, the main competitors like L&T and all three of you will be bidding for it. The total deal value is around INR 35,000 crore-INR 40,000 crore for four ships. Is this order going to be given to only one shipyard or will this be like L1 L2 kind of thing?
That will become clear once the RFC comes out. Right now we do not know whether it is going to be executed by one shipyard or it will be split into two.
Okay. Okay. Thank you. Thank you so much. All the best.
Thank you. The next question comes from the line of Praveen Desai who is an individual investor. Please go ahead.
Yes. Good afternoon, sir. When will the first phase of Tuticorin start?
Sorry to interrupt. Praveen, can you please mute your line?
Yeah.
There are multiple agencies involved. First is the land that we allotted to MDL. There is a port, VOC Port, involved, SIPCOT Tamil Nadu is involved, Tamil Nadu government is involved, then we are involved, then a foreign partner is involved. All this needs to be stitched together before we start. We are in the process. Initial discussions have been completed, and we are going ahead with that.
We have also signed an MoU with the Tamil Nadu government guidance body, which is a single window facilitating body for all clearances. We have seen the administration is very proactive in Tamil Nadu. We anticipate that we should be able to probably work on the DPR for the shipyard maybe in the next three to four months.
Praveen, do you have a follow-up question? Praveen, sir, can you please unmute?
No, ma'am, that was my only question. Thank you very much.
Thank you. As there are no further questions, I would now like to hand the conference over to Ms. Jyoti Gupta for the closing comments
For the call.
Sorry to interrupt you. We were not able to hear you.
Thank you on behalf. Yes, thank you so much. On behalf of Nirmal Bang Institutional Equities, we would like to thank the management of Mazagon Dock Shipbuilders Limited for the call. Also, many thanks to the participants for joining us on the call. Thank you very much, sir. You may now conclude the call.
Thank you.
Thank you. On behalf of Nirmal Bang Equities, that concludes this conference. Thank you for joining us. You may now disconnect your lines.