Mazagon Dock Q1 revenue tanks 35% regardless of income development; defence shares slide on weak sector earnings

Mazagon Dock Q1FY26 Outcomes: Defence PSU Mazagon Dock Shipbuilders reported a blended set of June quarter numbers post-market hours on Monday, because the broader defence sector confronted heavy promoting stress on the bourses.

For Q1 FY26, Mazagon Dock’s consolidated income stood at Rs 2,625.59 crore, up 11.35 per cent year-on-year (YoY) from Rs 2,357.02 crore a yr in the past. Nonetheless, the corporate’s web revenue declined sharply by 35 per cent YoY to Rs 452.15 crore, in comparison with Rs 696.10 crore in the identical quarter final yr.

The revenue dip regardless of larger income alerts potential value pressures or execution-related challenges. Traders will likely be intently watching administration commentary for extra readability.

Mazagon Dock Share Value Response

Shares of Mazagon Dock closed over 3 per cent decrease at Rs 3,052 forward of the earnings announcement. Whereas the inventory has been a multibagger, delivering over 1,950 per cent returns within the final three years, the Q1 miss might weigh on sentiment in Tuesday’s session.

Defence Shares Underneath Stress

The earnings got here amid a broader rout in defence shares. The Nifty India Defence index declined over 2 per cent in Monday’s intra-day commerce on the Nationwide Inventory Trade (NSE), extending its July decline to 12 per cent, considerably underperforming the benchmark Nifty 50, which has fallen 3.3 per cent this month.

Paras Defence and House Applied sciences plunged 10 per cent to Rs 704.70, whereas Zen Applied sciences slumped 5 per cent to Rs 1,690.70 — each locked of their respective decrease circuits. Different main decliners included Apollo Micro Methods, Knowledge Patterns (India), Dynamatic Applied sciences, BEML, DCX India, Cochin Shipyard, Backyard Attain Shipbuilders & Engineers (GRSE), MTAR Applied sciences, BEL, and Bharat Dynamics (BDL) — all falling between 3 and 5 per cent.

The Nifty Defence index has now corrected almost 15 per cent from its all-time excessive of 9,195.15 hit on June 6, 2025.

Why Defence Shares Are Falling

The sell-off was triggered partly by disappointing Q1 earnings from choose defence gamers.

Paras Defence posted a muted operational efficiency, with Q1FY26 income rising 11.5 per cent YoY to Rs 93.19 crore however falling 13.9 per cent sequentially. EBITDA dropped 9 per cent YoY to Rs 21.95 crore, with margins compressing to 23.6 per cent from 28.9 per cent a yr in the past. PAT inched up simply 1.1 per cent YoY to Rs 14.27 crore however declined 31.5 per cent sequentially.

In the meantime, Zen Applied sciences reported a 37.9 per cent YoY fall in income to Rs 158.2 crore, and PAT slipped 33.2 per cent YoY to Rs 53.07 crore. The corporate attributed the decline to a brief moderation in topline development, although administration expressed confidence in assembly their Rs 800 crore order influx steering for H1FY26, with Rs 150 crore already secured. Notably, Zen additionally accomplished a strategic acquisition of a 74 per cent stake in TISA Aerospace, which focuses on loitering munitions and UAVs.

Regardless of near-term pressures, each corporations reiterated their long-term development outlook, citing robust order books and upcoming authorities defence procurement plans.