Mazagon Dock shares slip over 3% after issuing clarification on ₹70,000 crore submarine contract talks report

Shares of Mazagon Dock Shipbuilders plunged as much as 3.04% to an intra-day low of ₹2,672 apiece on the National Stock Exchange (NSE) on Tuesday, August 26.

This comes after the defence PSU issued a clarification on news about its talks with Germany’s Thyssenkrupp for building submarines worth ₹70,000 crore.

Mazagon Dock clarified that on January 14, 2025, it was informed in writing by the Ministry of Defence’s acquisition wing that its bid for “Project P75(I)” was qualified for the next stage of procurements.

Subsequently, on January 16, a commercial bid for the project was opened by the empowered Committee, the regulatory filing said.

However, since then, no negotiations have been commenced with the Indian Ministry of Defense for the project.

“MDL was informed in writing by MoD ACQ Wing [ADG ACQ-Tech (M&S)] on 14 January 2025 that the MDL Bid for Project P75(I) was qualified for next stage of procurement. MDL’s Commercial Bid was opened by the empowered Committee on 16 January 2025. However, thereafter, no negotiations have been commenced with IN/MoD for the Project,” the company said.

Mazagon Dock called the report “factually incorrect”.

According to the report in circulation, the Ministry of Defence authorised the PSU to begin cost negotiations with Thyssenkrupp Marine Systems for building six submarines under the P-75 (I) programme.

Sources had told CNBC-TV18 that talks for the same were set to commence shortly, and six months after its conclusion, the deal was likely to be given to the Mazagon Dock-Thyssenkrupp consortium.

Q1 result

The company reported a 35% year-on-year (YoY) decrease in its net profit to ₹452 crore in the first quarter of the 2025-26 financial year (Q1FY26). In the corresponding period a year earlier, it stood at ₹696 crore.

Mazagon Dock's revenue from operations surged 11.4% YoY to ₹2,626 crore during the quarter under review, compared to ₹2,357 crore in the June quarter of FY25.

Mazagon Dock stock performance

Shares of the defence company had surged 4% on Monday. However, at around 12:03 pm on Tuesday, the stock is trading 1.95% lower at ₹2,701.90 per equity share.

The scrip lost 0.78% over the previous week and 2.50% since the beginning of August. However, it gained 22.71% in Q1FY26 and 21.22% on a year-to-date basis.

While the stock hit a 52-week high of ₹3,775 on May 29, 2025, it reached a year’s low of ₹1,918.05 per equity share on February 19, 2025.

Mazagon Dock has a total market capitalisation of ₹1.09 lakh crore, as of August 26, 2025, as per data on the NSE.