P-75 (3 Scorpene) order — earlier signaled signing in H1FY26; status?
Commercial negotiations with MOD completed a few months ago; project at sanction stage. No update beyond that. Hopeful contract signs in coming months.
How will MDL enhance shareholder value?
More orders, efficient execution, perform well — that's how MDL rewards shareholders.
MoU with Mitsui Shipping Lines (Japan)?
No MoU with Mitsui. Navy in very early stages with Japan on common destroyer design — no MoU signed by MDL yet.
P-75(I) timeline?
Commercial negotiations ongoing — 2-3 rounds completed. Anticipate completion by this calendar year and contract signing by this FY (FY26).
Revenue growth guidance until submarine orders kick in?
FY26 revenue ~Rs.12,500 crore; FY27 ~5% growth over that. Considerable improvement once submarine projects kick in.
DAC approval of Rs.79,000 crore including LPD — opportunity?
MDL signed exclusive MoU with Swan Shipyard (SDHI) for LPD bid (large 200m+ ships); MDL handles design/weapon integration/project mgmt; Swan brings infrastructure + procurement flexibility. Well-placed to win.
P-17A execution + FY26-27 margin trajectory? When does P-75 execution commence post order?
P-17A: 3rd ship this calendar year; 4th ship into next FY; guarantee period also continues — revenue and profit margin visibility for FY26 and FY27. Thereafter a few months of only Coast Guard + MPV + ONGC (lower margins). Submarine contracts when signed will lift margins as MDL is highly familiar — high productivity and operational efficiency. P-75 additional: revenue starts immediately on signing (follow-on of executed Scorpenes). P-75(I): 6 months preparatory period before revenue.
Swan Defense MoU — leveraging capacity, future scope, revenue model?
MoU is exclusively for LPD currently. May collaborate on other large commercial ships later. MDL bids the project with Navy; Swan executes at backend (large infrastructure suits 200m+ LPD). MDL brings PM/weapon integration/design expertise. Win-win revenue/profit; specific arrangement post-RFP. Order ~Rs.40,000 crore for 4 ships.
Revenue and margin guidance — covered.
Acknowledged; no new comment.
H1 operating cash flow turned negative — explain?
Navy flexi advance received in March 2025 has been consumed this year — accounts for negative cash flow. Margins intact; expect better quarters ahead.
Margin outlook for FY26 + FY27 given current order mix? Order pipeline?
Coast Guard provisions already taken in last 2 quarters. ONGC contracts cost-plus; expect contracted margin. PRP contract is fixed-price; expect to complete at bid cost. Capt. Jagmohan: Pipeline — LPD Rs.35-40,000 crore, MCMV Rs.40,000 crore, 17 Bravo Rs.50-60,000 crore, destroyer-class (15 Charlie/NGD) Rs.70-80,000 crore.
Colombo Dockyard acquisition status, revenue/EBITDA contribution this quarter?
Acquisition not complete; not shareholders yet. Approvals expected on time; final approval for rights issue this weekend; EGM end-month; expect to be shareholders early next month. Capt. Jagmohan: Plans — commercial shipbuilding + ship repair (50/50 mix); current revenue ~Rs.1,000 crore; ramp to Rs.1,500 crore in next year (50% increase in 2 years). Past association with Onomichi Shipyard (Japan); good European/Scandinavian clientele. Biju George: ~15% margin per balance sheet but with some losses; bulk carriers + cable laying vessels — new orders expected this FY.
LPD technology partner? P75 to P75I conversion rumour? Submarine S-curve shortening? US Navy repair? Commercial partner?
LPD: not yet decided; awaiting RFP. P75 to 9 P75I conversion: no communication from MOD/Navy; won't speculate. Submarine S-curve: experience from P-75 should shorten; not 7 vs 9 years but more even revenue spread. US Navy MSRA: registered, participating where infrastructure suits; nothing recent. Commercial: Swan agreement is only for LPD (not commercial); commercial vessels not yet crystallized.
Short-cycle order pipeline? Stable margin guidance for FY26-27?
Currently 27 ships executing (Coast Guard + export); not aggressively bidding on small segment. Capt. Jagmohan: Government aggregating commercial demand — ~112 vessels (MR tankers, PSVs, VLCCs). Short-cycle opportunities from Shipping Corp, ONGC, IOCL — possibly Rs.1,000 crore range. Margin: 15% for operationally efficient shipyard; varies by project mix; on average 15%+.
Sequence of P-75 additional, P-75(I), LPD orders?
P-75 additional: could come immediately. P-75(I): negotiations ongoing; expect signing before FY end. LPD: a year out (DAC done; RFP in 4-5 months; L1 + order placement another 6 months). 17 Bravo frigate RFP next month or this calendar year; order in Q3CY2026.
Colombo total cash outgo?
Depends on rights issue + mandatory offer; expect 51% to 75% shareholding; if 100% taken, ~Rs.450 crore outflow.
Negative provisions this quarter — LD write-back? Quantum?
Yes — Rs.102 crore LD written back, pertaining to 17 Alpha second ship. Capt. Jagmohan: Anticipate ~Rs.100 crore more on first submarine boat (LD waiver pending with MOD).
15% margin — EBITDA/operating? With other income?
Depends on completion stage. Current 25-30% reflects late-stage projects with no warranty liabilities left. New projects: 12-15%. EBITDA = PBT = PAT essentially given negligible borrowings.
How much margin uplift from internal efficiencies (vs 5% EBITDA 8-10 years ago)?
Efficiency + workmanship quality contribute at project completion — when no guarantee defects, margin recognized. Initial conservative bookings ramp up as project completes.
ONGC Rs.4,800 crore execution timeline? AIP order status?
ONGC executed only Oct-May (no monsoon). DSF II Rs.4,800 crore — large extent done by May 2026; spillover to next season (Oct mid-2026).
Naval Group MoU export status? Capacity for more submarine orders?
Capacity: 11 submarines simultaneous build; even with 3 Scorpene + 6 P-75(I) there's spare capacity. Naval Group MoU explores Asian export opportunities. Signed exclusive MoU with one country (unnamed) for joint bidding.
MCMV order status? Pending P-17A book composition (guarantee repairs %)?
MCMV RFP expected in 3-4 months (after 17 Bravo). 17A guarantee repair allocation ~10% of ship cost.
H1 capex incurred and FY26 capex outlook? Nhava Sheva update?
FY26 capex ~Rs.500 crore (primarily floating dock — halfway through, completing this FY). Going forward: Rs.1,000 crore combined for Nhava + South Yard Annex + Rs.1,000 crore for P-75(I) infrastructure. Greenfield Tuticorin shipyard ~Rs.5,000 crore over next 5 years.
H2 provisions — onerous contract reviews?
Anticipate review/booking in Q4.
Tuticorin Rs.5,000 crore — what ships, dual use?
Dual use — commercial + naval. Could potentially make 3rd aircraft carrier if Navy needs. Commercial: domestic market first (112 vessels aggregated by Min of Shipping — PSV, MR tankers, then VLGCs/VLCCs).
Subcontract expense — reducing or staying high?
High this quarter due to offshore (turnkey outsourcing). 17 Bravo will see lower subcontracting. Project-dependent.
Order book outlook for FY26-FY27?
Order book will exceed Rs.1 lakh crore by FY27.
Government push on commercial shipping — view? FY32 defense/commercial revenue mix?
MDL has built 800+ commercial ships historically; re-entered with Denmark MPV + Colombo Dockyard. Tuticorin large yard for commercial. Currently 80-90% Navy — diversify via offshore (Rs.7,000 crore ONGC), commercial, defense; specific mix TBD.
Tuticorin ship size?
VLCCs — 300,000 (3 lakh) deadweight tonnage; 300+ meters length.
Tuticorin total capex and capacity?
Government targets 1-1.5 million capacity per cluster. Land 1,000-1,100 acres. Total capex Rs.15,000-18,000 crore phased; first phase Rs.5,000 crore in next 3-4 years (subject to government/environment clearance and state trunk infrastructure).
LPD technical partner status? L1/L2 split?
Earlier RFP required European partner; not sure if still required since Indian shipyards now have design competence. Swan agreement covers construction. Allocation between MDL/L&T/CSL — clarity post-RFP (one shipyard or split).
When does Tuticorin first phase start?
In discussion with Tamil Nadu government; multiple agencies (TN Govt, V.O. Chidambaranar Port, MDL, foreign partner). MoU signed with TN Guidance body (single window). Capt. Jagmohan: DPR work in next 3-4 months.