Mazagon Dock Q2 FY27 Results (NSE: MAZDOCK)
Signal: Revenue declined
The read
The key inflection is sequential stabilisation in consolidated revenue at ₹294,270 lakh, +1.1% QoQ, but earnings quality weakened as gross margin compressed 662bps YoY and provisions swung to ₹44,551 lakh from a ₹2,515 lakh write-back; the group also moved from ₹224,123 lakh net cash at March to ₹20,028 lakh net debt by September.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,942.7 Cr | -45.4% | +1.1% |
| EBIT | ₹420.3 Cr | -55.4% | |
| Net profit | ₹346.4 Cr | -53.8% | |
| EPS | ₹8.53 | -54.1% | |
| EBIT margin | 14.3% |
P&L walk
Consolidated revenue was ₹294,270 lakh, -45.4% YoY but +1.1% QoQ; gross margin fell to 62.5% from 69.2% as stock-in-trade purchases rose to 15.4% of revenue, while PAT fell 53.8% to ₹34,640 lakh after provisions of ₹44,551 lakh.
Segments
No operating segment table is disclosed because the company is exempt from segment reporting; however, the associate contributed ₹4,849 lakh of net profit and the subsidiary contributed quarterly revenue of ₹21,801 lakh, leaving consolidated PAT only ₹620 lakh above standalone PAT.
Key positives
- Consolidated revenue of ₹294,270 lakh was +1.1% QoQ after the weak prior quarter, indicating sequential stabilisation despite a 45.4% YoY decline.
- Consolidated EPS of ₹8.53 broadly tracked PAT decline of 53.8%, with no material dilution signal.
- The company declared an interim dividend of ₹5 per share and maintained a large contract-liability balance of ₹685,269 lakh, providing visibility into customer advances already on the balance sheet.
Key concerns
- Gross margin fell 662bps YoY to 62.5% as materials plus stock-in-trade purchases rose to 37.5% of revenue from 30.8%; the filing does not disclose the cause.
- Provisions were ₹44,551 lakh in Q2FY27 versus a ₹2,515 lakh write-back in Q2FY26, materially depressing EBITDA and PAT.
- Operating cash flow remained negative at ₹194,847 lakh in H1FY27 despite H1 PAT of ₹83,686 lakh, while cash and cash equivalents fell to ₹60,324 lakh from ₹268,134 lakh at March 31, 2026.
- Standalone revenue fell 23.9% YoY to ₹222,808 lakh and standalone gross margin fell 1,133bps to 51.9%, indicating that the group weakness is primarily within the parent business rather than only the subsidiaries.
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