Mazagon Dock Q2 FY27: PAT sinks 54% YoY to ₹346 Cr on provisioning spike, OPM halves to 8%

Mazagon Dock's consolidated PAT fell 53.8% YoY to ₹346 Cr (from ₹749 Cr in Q2 FY26) and 37.1% QoQ (from ₹550 Cr in Q1 FY27), while consolidated revenue from operations declined 16.5% YoY to ₹2,446 Cr and 16.9% QoQ — a weak print against both prior quarters, not a growth story. Standalone PAT was ₹340 Cr, down 52.4% YoY, broadly consistent with the consolidated trend, though standalone revenue fell further (-23.9% YoY) than consolidated (-16.5% YoY), as the Colombo Dockyard subsidiary partly cushioned the decline at the group level. The headline decline is dominated by a single swing: the 'Provisions' expense line jumped to ₹445.5 Cr this quarter from a ₹25.2 Cr credit a year ago and just ₹29.5 Cr last quarter — a ~₹470 Cr YoY and ~₹416 Cr QoQ swing that alone explains roughly 88% of the reported PBT decline. Stripping it out, adjusted PBT was down only ~7% YoY and actually up ~18% QoQ, versus a 57% reported YoY and 42% reported QoQ PBT decline — so while revenue genuinely contracted, the profit collapse is materially overstated by this one quarter's elevated provisioning, which the filing does not break out further. Consolidated OPM still compressed sharply to 8.1% from 23.7% YoY and 15.2% QoQ, and NPM fell to 12.8% from 23.4% YoY, reflecting both the provisioning charge and the lower revenue base absorbing fixed costs. There is no management guidance on record for this quarter, and web search surfaced no Q2 FY27-specific consensus; against our pre-result preview's working expectations (revenue ~₹3,050-3,150 Cr, PAT growth 15-20% YoY, set against a neutral-but-bifurcated Street view with a ₹2,950 median target), the actual print missed on both counts even after adjusting for the provisioning swing. Goa Shipyard, the 47.21%-held associate, contributed ₹48.5 Cr to consolidated profit, while the 51%-held Colombo Dockyard subsidiary added ₹2.3 Cr of minority profit; no exceptional items were recorded in either the current or year-ago quarter per the filing's own classification. The board declared an interim dividend of ₹5/share (record date November 3, 2026) alongside the results, and separately approved raising authorised share capital to ₹900 Cr from ₹323.72 Cr, pending DIPAM and shareholder approval. Going into Q3, the key question is whether the provisioning charge normalizes — it was ₹29.5 Cr as recently as Q1 FY27 — and whether revenue recovers from this quarter's dip, typical of lumpy delivery recognition in long-cycle defense shipbuilding. The company remains exempt from segment disclosure as a defense producer, so order-book and delivery-schedule detail isn't visible in this filing; the concall should clarify Project 75I/Kalvari-class progress and the ₹118 Cr MSETCL non-defense order flagged pre-result.