𝗧𝘄𝗼 𝗠𝗮𝘇𝗼𝗿 𝗣𝗦𝗨 𝗗𝗲𝗳𝗲𝗻𝗰𝗲 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗠𝗮𝘇𝗮𝗴𝗼𝗻 𝗗𝗼𝗰𝗸 𝗦𝗵𝗶𝗽𝗯𝘂𝗶𝗹𝗱𝗲𝗿𝘀 𝗔𝗻𝗱 𝗕𝗵𝗮𝗿𝗮𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀 𝗟𝘁𝗱.𝗙𝗶𝘅𝗲𝗱 𝗧𝗵𝗲𝗶𝗿 𝗨𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱 𝗥𝗲𝗰𝗼𝗿𝗱 𝗗𝗮𝘁𝗲𝘀 𝗼𝗻 𝟭𝟵𝘁𝗵 𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿, 𝟮𝟬𝟮𝟱

 

Two of India's prominent defence public sector undertakings - Mazagon Dock Shipbuilders and Bharat Dynamics Limited - have captured investor attention with their upcoming dividend record dates on September 19, 2025. This article examines these dividend declarations against the backdrop of their contrasting quarterly performances, providing a comprehensive overview for investors navigating the dynamic defence sector.

 

Mazagon Dock Shipbuilders, a leading shipyard established in 1774, has evolved into a renowned shipbuilding company responsible for constructing warships, submarines, and offshore platforms for India's defence forces. The company recently announced a final dividend of ₹2.71 per equity share (face value ₹5 each) for FY 2024-25, with September 19, 2025, set as the record date for determining eligibility.

 

Understanding Record Date Importance

 

The record date (September 19, 2025) is crucial for investors as it determines eligibility for dividend payments. Investors must hold shares before this date to qualify for the dividend payout. For both companies, the dividend will be paid within 30 days from declaration at their respective Annual General Meetings. 

 

4.2 Sector Outlook and Investment Perspective

 

The defence sector remains strategically important in India, with rising defence budgets and improving export opportunities providing long-term growth visibility. However, as observed in Mazagon Dock's results, execution challenges and cost pressures can create quarterly volatilities.

 

Analysts have highlighted that after sharp rallies in many defence names, investors have started booking profits in defence stocks, with the pullback representing a natural consolidation rather than a capitulation. Stock selection is becoming critical, with preference for companies with robust balance sheets, clear execution histories, and pipeline visibility. 

 

Q1 FY26 Financial Performance: Mixed Results

 

The company's Q1 FY26 results presented a contrasting picture:

 

Revenue growth: Consolidated revenue increased by 11.35% YoY to ₹2,625.59 crore from ₹2,357.02 crore in Q1 FY25.

 

Profit decline: Net profit saw a significant decrease of 35% YoY to ₹452.15 crore from ₹696.10 crore in the same quarter last year. 

 

EBITDA contraction: EBITDA halved to ₹302 crore from ₹642 crore YoY, with EBITDA margins shrinking to 11.49% from 27.25%.

 

Challenges and Strategic Position

 

The margin compression was attributed to multiple factors including cost inflation, project execution challenges on fixed-price contracts, and a substantial increase in provisions which surged to over ₹540 crore compared to just ₹3 lakh in the year-ago quarter. Despite these short-term headwinds, Mazagon Dock remains a key strategic player in India's defence indigenisation programme with a strong order book backed by potential follow-on submarine contracts and new defence orders. 

 

Bharat Dynamics Limited: Impressive Growth Trajectory

 

Bharat Dynamics Limited (BDL), a public sector undertaking under the Defence Ministry focusing on missile systems and defence equipment, reported exceptionally strong growth in Q1 FY26 . The company has declared a final dividend of ₹0.65 per equity share (face value ₹5 each), also with a record date of September 19, 2025 .

 

Q1 FY26 Financial Performance: Robust Growth

 

BDL's quarterly results demonstrated impressive performance:

 

Profit surge: Net profit skyrocketed 154.37% YoY to ₹18.34 crore from ₹7.21 crore in Q1 FY25. 

 

Revenue growth: Revenue from operations climbed 29.69% YoY to ₹247.92 crore from ₹191.16 crore in the year-ago period. 

 

Expense management: Total expenses rose to ₹311.65 crore, but were effectively managed to deliver substantial profitability improvement. 

 

Market Position and Shareholder Structure

 

As of June 2025, the Government of India held a 74.93% stake in this defence PSU. The stock has shown high volatility with a one-year beta of 1.1, and technically traded lower than several key moving averages despite its strong fundamental performance 

 

Comparative Analysis: Dividend Profiles and Financial Metrics

 

Mazagon dock shipbuilders:

 

Dividend per share ₹ 2.71

Face value ₹ 5

Record date September 19,2025

Dividend yield 0.65%

PE ratio 49.77

 

Bharat Dynamics Ltd.:

 

Dividend per share ₹ 0.65

Face value ₹ 59

Record date September 19,2025

Dividend yield 0.04%

PE ratio 7.57

 

Financial Performance Comparison

 

Mazagon dock shipbuilders:

 

Revenue growth (you) 11.35%

Profit growth (you) - 35%

EBITDA down 53%

 

Bhart Dynamics Ltd.:

 

Revenue growth (you) 29.69%

Profit growth (you) 154.37%

EBITDA Improved from loss

 

Technical Overview of both the stocks:

 

As per above weekly chart of Mazagon dock shipbuilders, we can see that the stock price has given a positive closing above 20 EMA with increased volume, and RSI on daily time frame is 63 and on weekly time frame is 53 which are positive signs.

 

As per above daily chart of Bharat Dynamics Ltd., we can see that the price has closed above 20 EMA on daily time frame with significant high volume, and RSI is also above 55 approaching towards 60 indicating high momentum for the short term period. 

 

Sector Outlook and Investment Perspective

 

The defence sector remains strategically important in India, with rising defence budgets and improving export opportunities providing long-term growth visibility. However, as observed in Mazagon Dock's results, execution challenges and cost pressures can create quarterly volatilities. 

 

Analysts have highlighted that after sharp rallies in many defence names, investors have started booking profits in defence stocks, with the pullback representing a natural consolidation rather than a capitulation. Stock selection is becoming critical, with preference for companies with robust balance sheets, clear execution histories, and pipeline visibility. 

 

Conclusion: Balanced Perspective for Investors

 

Mazagon Dock Shipbuilders and Bharat Dynamics present two contrasting stories in Q1 FY26—while Mazagon Dock faced margin pressures despite revenue growth, Bharat Dynamics delivered impressive profit expansion. Both companies are rewarding shareholders with dividends, reflecting their commitment to returning value despite market volatilities.

 

For investors, these defence PSUs represent different investment propositions: Mazagon Dock with its strategic shipbuilding capabilities and larger scale, despite current margin challenges; and Bharat Dynamics with its strong growth momentum and profitability improvement in the missile systems segment.

 

As the record date of September 19, 2025, approaches, investors should assess their investment thesis in light of both companies' fundamental performance, sector outlook, and dividend yields within the broader context of their portfolios. The defence sector's long-term prospects remain promising, though quarterly volatilities may continue as these companies navigate complex project executions and cost environments.

 

𝘿𝙞𝙨𝙘𝙡𝙖𝙞𝙢𝙚𝙧: 𝙏𝙝𝙞𝙨 𝙖𝙣𝙖𝙡𝙮𝙨𝙞𝙨 𝙗𝙮 𝙈𝙞𝙣𝙚𝙮𝙒𝙞𝙨𝙚𝙈𝙞𝙣𝙙 𝙞𝙨 𝙛𝙤𝙧 𝙞𝙣𝙛𝙤𝙧𝙢𝙖𝙩𝙞𝙤𝙣𝙖𝙡 𝙥𝙪𝙧𝙥𝙤𝙨𝙚𝙨 𝙤𝙣𝙡𝙮 𝙖𝙣𝙙 𝙨𝙝𝙤𝙪𝙡𝙙 𝙣𝙤𝙩 𝙗𝙚 𝙘𝙤𝙣𝙨𝙩𝙧𝙪𝙚𝙙 𝙖𝙨 𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩 𝙖𝙙𝙫𝙞𝙘𝙚. 𝙄𝙣𝙫𝙚𝙨𝙩𝙤𝙧𝙨 𝙨𝙝𝙤𝙪𝙡𝙙 𝙘𝙤𝙣𝙙𝙪𝙘𝙩 𝙩𝙝𝙚𝙞𝙧 𝙤𝙬𝙣 𝙧𝙚𝙨𝙚𝙖𝙧𝙘𝙝 𝙖𝙣𝙙 𝙘𝙤𝙣𝙨𝙪𝙡𝙩 𝙬𝙞𝙩𝙝 𝙦𝙪𝙖𝙡𝙞𝙛𝙞𝙚𝙙 𝙛𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙖𝙙𝙫𝙞𝙨𝙤𝙧𝙨 𝙗𝙚𝙛𝙤𝙧𝙚 𝙢𝙖𝙠𝙞𝙣𝙜 𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩 𝙙𝙚𝙘𝙞𝙨𝙞𝙤𝙣𝙨.