Rs 23,758 crore order book & 150% dividend: Defence Shipbuilding Company Confirms Completion of Negotiations for Rs 99,000 Crore Defence Contract

State-owned Defence shipbuilder Mazagon Dock Shipbuilders Ltd has confirmed that negotiations related to a massive Rs 99,000 crore defence contract have been completed. The clarification came in response to regulatory queries after the company’s share price surged following media reports about a potential submarine deal with the Indian Navy.

The company issued its clarification in response to an email dated March 5, 2026, regarding a news article titled “Mazagon Dock shares climb 6 per cent amid report of Rs 99,000 crore defence deal.” In its response, Mazagon Dock addressed questions about whether negotiations for such a large contract were underway and whether any undisclosed information could explain the recent movement in its share price.

The shipbuilder stated that, in continuation of its earlier disclosures dated August 25, 2025, September 10, 2025, and January 9, 2026, negotiations between the government and the company have now been completed.

According to the company, the discussions were conducted through the Contract Negotiation Committee (CNC), which oversees key defence procurement processes. Mazagon Dock confirmed that CNC negotiations between the Government of India and the company have been completed.

Following the completion of negotiations, the proposal has now been forwarded to the competent government authority for approval. This indicates that while the negotiation stage has concluded, the final award of the contract is still subject to formal government approval.

Responding to another query regarding unusual trading activity in its shares, Mazagon Dock clarified that it is not aware of any information that has not already been disclosed to the stock exchanges that could explain the recent movement in its share price. The company also stated that there are no regulatory or legal proceedings related to the matter, confirming that the query regarding such proceedings is not applicable.

Apart from the update regarding the completion of negotiations, Mazagon Dock reiterated that it is not aware of any other material developments referred to in the news report.

Media reports indicated that the surge in Mazagon Dock’s shares was linked to expectations of a major defence contract involving the Construction of six advanced conventional submarines for the Indian Navy.

The submarines are expected to be built in Mumbai by Mazagon Dock in collaboration with Germany-based Thyssenkrupp Marine Systems under the ambitious Project 75(I) submarine programme. The programme aims to develop six state-of-the-art submarines through technology collaboration and domestic manufacturing. Contract negotiations between Thyssenkrupp Marine Systems and Mazagon Dock reportedly began in 2025 as part of the initiative.

If approved, the Rs 99,000 crore contract would become one of the largest defence procurement projects in India.

Following the reports of the potential contract, Mazagon Dock shares recorded strong gains in the market. The stock rose 6.69 per cent during Intraday trading to hit a high of Rs 2,311.35 on the BSE. By the close of trading on March 5, 2026, the share price settled at Rs 2,352.50 on the NSE, marking a gain of Rs 187.10 or 8.64 per cent for the day.

Large naval acquisition projects typically involve significant contract values and complex procurement procedures. Such projects can also experience procedural delays due to changing geopolitical conditions and evolving defence technologies.

Mazagon Dock reiterated that negotiations for the Rs 99,000 crore defence deal have been completed. However, the contract is still subject to approval by the competent government authority, and no further announcements have been made beyond the disclosures already provided.

Disclaimer: The article is for informational purposes only and not investment advice.