India, a nation that moves 95% of its trade by sea, paradoxically contributes less than 1% to the world's shipbuilding output. This glaring gap is now the target of a monumental strategic shift. Backed by a defence pipeline worth ₹2.3 trillion and robust policy support, the country is embarking on a mission to become a major maritime power, with domestic shipbuilders at the helm of this transformation.
The Foundation of a Maritime Powerhouse
This ambitious push is not merely about adding vessels; it's about building a self-reliant industrial ecosystem. The effort is underpinned by a naval modernisation plan involving more than 60 vessels currently under construction and another 70 to 80 planned, as per analysis by Phillip Capital. A critical driver is the sharp rise in indigenisation, with domestic content in frontline warships now reaching 70-75%, a significant leap that strengthens local yards and ensures long-term order visibility.
Policy frameworks have solidified this shift. The grant of infrastructure status to the sector and a dedicated ₹69,700 crore shipbuilding and maritime development package are enabling access to cheaper, long-tenure financing. Procurement norms that reserve the bulk of defence orders for domestic players further cement the central role of public sector shipyards. Here are the three key companies steering India's naval ambitions.
Mazagon Dock Shipbuilders: The Naval Vanguard
Mazagon Dock Shipbuilders Ltd (MDL) stands as the Indian Navy's most critical execution partner. It holds the unique distinction of being the only Indian yard capable of concurrently building surface combatants like destroyers and stealth frigates alongside conventional submarines under one roof. This capability makes it a direct and primary beneficiary of the navy's modernisation drive.
Its order book, which stood at ₹27,415 crore as of September, is poised for a dramatic expansion. The company expects imminent orders for three additional Scorpène submarines (worth ₹36,000 crore) and is a key contender for the massive P-75(I) submarine programme (₹70,000 crore). Successful closure of these deals could catapult its order book beyond the ₹1 trillion mark.
Beyond new builds, MDL is strategically diversifying. Its recent acquisition of Colombo Dockyard in Sri Lanka aims to boost its ship repair revenue, with plans to increase the facility's turnover by 50% over two years. This move is crucial to reducing its current 80-90% dependence on the Indian Navy for orders.
Garden Reach Shipbuilders & Engineers: The Diversified Specialist
Garden Reach Shipbuilders & Engineers (GRSE) carves a niche with its execution depth across a wide array of platforms—from corvettes and frigates to patrol vessels. As of September, its order backlog of ₹20,206 crore provides a robust five years of revenue visibility.
The company is on the cusp of securing even larger projects. It is the L1 (lowest) bidder for the ₹30,000 crore next-generation Corvette programme and is eyeing a potential pipeline worth about ₹1.5 trillion, which includes projects like the P-17 Bravo frigates and landing platform docks. Exports are becoming a steady second pillar, with orders including 12 multi-purpose vessels for Germany.
Financially, GRSE's performance reflects its strong positioning. In the first half of FY26, its revenue surged 38% year-on-year to ₹2,987 crore, while net profit jumped 48% to ₹274 crore.
Cochin Shipyard: The Strategic Balancer
Cochin Shipyard Ltd (CSL) distinguishes itself with a dual strength: it is the only Indian yard that built the indigenous aircraft carrier INS Vikrant, and it possesses a formidable, high-margin ship repair business. This combination offers a more resilient earnings profile.
With an order book of ₹21,100 crore, CSL has four to five years of revenue visibility. About 66% of this comes from defence, underscoring its strategic importance. The company is transitioning after the completion of the aircraft carrier project and is now focused on next-generation missile vessels and shallow-water craft.
Its crown jewel remains the ship repair segment, which contributed over 40% of its FY25 revenue. The new international ship repair facility at Kochi is expected to generate an additional ₹250 crore in revenue within 18-24 months. Ship repair commands significantly higher operating margins of 23-35%, providing a lucrative and stable revenue stream alongside the capital-intensive new-build projects.
Sailing Into a Secure Future
The confluence of massive defence spending, policy tailwinds, and rising indigenisation has created a rare, multi-year growth runway for India's leading shipbuilders. For Mazagon Dock, GRSE, and Cochin Shipyard, the current naval pipeline is just the beginning. With plans for next-generation destroyers, aircraft carriers, and a growing export footprint, these companies are not just building ships—they are building the pillars of India's maritime sovereignty and industrial might for decades to come.
