Mazagon Dock Shipbuilders Ltd (MDL) is aiming to scale its order book to over ₹1 lakh crore by the end of FY26, banking largely on the expected finalisation of the crucial Project-75 India (P-75I) submarine contract, according to Ruchir Agrawal, Director (Finance) of the state-owned defence shipbuilder.
Agrawal said negotiations for the P-75I programme—covering the construction of six advanced submarines for the Indian Navy—are currently underway and the contract is expected to be signed before the close of the current financial year. If concluded as planned, the deal would significantly expand MDL’s order pipeline over the next two years.
As of September 30, MDL’s order book stood at around ₹27,400 crore, which has since reduced to approximately ₹25,000 crore due to ongoing execution. “The negotiation for 75I is already on, and before the close of this financial year, we should sign the deal. If everything goes well, our order book should be more than a lakh crore by FY26-end,” Agrawal said, declining to disclose the contract value due to the ongoing negotiations.
Clarifying the status of other submarine programmes, Agrawal noted that discussions on the follow-on P-75 Scorpene submarine order have yet to begin. While the project remains active, MDL has not been called for negotiations and expects greater clarity only by the end of FY26 or early FY27.
On the financial outlook, MDL has maintained its guidance of a ₹12,500 crore topline and operating margins of around 15% for FY26, despite operational challenges such as an extended monsoon season. “We are holding with that and expect to meet these targets, although challenges are there,” Agrawal said.
Exports continue to form a small part of MDL’s business, with a single overseas order of about ₹715 crore currently on hand, which the company has acknowledged is loss-making. However, MDL expects export opportunities to grow in the medium term as India’s shipbuilding and maritime infrastructure capabilities expand.
Agrawal also indicated that the company does not foresee any significant reversal or further increase in provisions related to multi-purpose vessels (MPVs) and Coast Guard vessels in Q3FY26 or Q4FY26, pointing to a stable provisioning outlook going forward.
