Mazagon Dock Shipbuilders Ltd (MAZDOCK) Q2 FY27 Results Analysis: PAT Plunges 54%, Ex-Provision Margin Expands 349 bps

Mazagon Dock Shipbuilders Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,446.09 Cr (-16.49% YoY) and PAT growth of -54.09% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 consolidated revenue fell 16.49% YoY and PAT to owners fell 54.09% YoY, driven largely by a Rs.445.51 Cr provision charge, though ex-provision EBITDA margin rose ~349 bps YoY to 26.35%. H1 revenue of Rs.5,388.79 Cr (−2.99% YoY) trails management's ~5% FY27 growth marker, requiring ~12-13% H2 growth, while the contract-liability buffer is down 33.5% since March. Balance sheet remains cash-rich at Rs.11,643.15 Cr, and an interim dividend of Rs.5/share was declared alongside an authorized capital increase to Rs.900 Cr.

Key Investment Insights

Key Positives

• Ex-provision EBITDA margin of 26.35% in Q2 vs 22.86% YoY, up ~349 bps, showing completion-stage project economics
• Goa Shipyard equity contribution rose 22.42% YoY to Rs.48.49 Cr in Q2
• Trade receivables fell Rs.1,608.41 Cr to Rs.997.28 Cr on large MoD collections
• H1 operating cash outflow narrowed 35% YoY to −Rs.1,948.47 Cr from −Rs.2,988.20 Cr
• Colombo Dockyard consolidation added Rs.218.01 Cr of Q2 revenue
• Interim dividend of Rs.5/share (≈Rs.201.69 Cr) declared; authorized share capital increase to Rs.900 Cr approved subject to consents
• Net worth rose Rs.699.81 Cr in H1 to Rs.10,683.82 Cr; cash + bank balances of Rs.11,643.15 Cr

Risk Factors

• Revenue fell 16.49% YoY and 16.89% QoQ; standalone revenue declined 23.93% YoY
• PAT to owners fell 54.09% YoY; even provision-normalized PAT was down 7.41% YoY
• H1 revenue down 2.99% YoY vs management's ~5% FY27 growth marker; H2 needs ~12-13% YoY growth to reach the full-year target
• Rs.445.51 Cr provision charge drove a Rs.470.66 Cr YoY swing vs the year-ago write-back
• H1 ex-provision EBITDA margin fell to 20.80% from 27.21% on mix shift toward lower-margin work
• Contract liability buffer down 33.5% since March 2026; borrowings of Rs.803.52 Cr appeared against the prior zero-debt position