Just as Apple and other electronics companies are diversifying their supply chains, global shipping companies and foreign navies are also diversifying their procurement away from traditional shipbuilding hubs such as China and South Korea. As a result, Indian shipbuilders are well-positioned to capture this incremental global demand over the medium term.
Indian maritime and defence exports have seen robust momentum, reaching a record ₹23,622 crore in FY25, with a target of ₹50,000 crore by FY29. Although the domestic naval program is the primary growth driver, exports are increasingly becoming a critical diversification lever.
Indian shipyards are seeing a high volume of inquiries from European and Middle Eastern nations. The industry reports that the high volume of these opportunities and the large order values present huge potential for all Indian shipyards. Along similar lines, here are 3 shipyards expected to benefit from this opportunity…
#1 Mazagon Dock: The ₹24,000-cr PSU giant securing US Navy and European contracts
Mazagon Dock Shipbuilders (MDL) has a legacy of building 805 platforms since its inception, which includes a broad spectrum of exports comprising more than 240 vessels. Its export portfolio covers various products, including new builds for Civilian and Military end-use, repairs of commercial vessels, and refits and repairs of warships and submarines.
A Legacy of 800+ Platforms
MDL leverages its unique strengths and capabilities, particularly in complex activities such as weapon integration and sensor development for high-tech defence platforms. This capability provides an advantage over global competitors, positioning the company to capitalize on rising defence needs.
To revamp its international presence, MDL has adopted an aggressive expansion strategy. It is in continuous dialogue with various Indian Embassies and High Commissions abroad to expand its product outreach to prospective global customers. It also directly communicates with foreign navies to understand and meet their requirements.
Strategic Access to Global Routes
MDL is participating in global tenders of various countries. It has also appointed marketing representatives and channel partners to promote its products globally. MDL’s strategic location on India’s west coast provides proximity to the main sea routes crisscrossing the Arabian Sea and the Indian Ocean, ensuring strong access to markets in Europe and the Middle East.
The company is actively pursuing export opportunities across Latin America (LATAM), Africa, and Europe. MDL has an export order of ₹715 crore for multi-purpose hybrid-powered vessels for a European client. As of Q3FY26, the remaining balance is ₹638 crore, with all 6 vessels pending delivery.
US Navy: New Revenue Stream
To expand its footprint in ship repair, refit, and commercial shipbuilding, MDL has acquired a 51% stake in Colombo Dockyard. Additionally, the company is strengthening its ship repair business through agreements with the US Navy, which will provide a stable, shorter-cycle revenue stream to complement its long-gestation shipbuilding projects.
Exporting Advanced Scorpene Submarines
As a milestone in its defence export ambitions, MDL has signed an exclusive Memorandum of Understanding with France Naval Group. This collaboration aims to offer an evolved Scorpene-class submarine to a friendly country as part of its ongoing submarine acquisition program, showcasing MDL’s readiness to export highly advanced, complex naval combatants.
MDL Share Price
#2 GRSE: 12-vessel German order signals a massive shift in commercial shipbuilding
Garden Reach Shipbuilders & Engineers (GRSE) is the first Indian shipyard to export a warship. It is actively leveraging its internationally acclaimed shipbuilding capabilities to capture a larger share of the global maritime market. The company is also expanding its footprint across commercial shipbuilding, defence platforms, and engineering exports.
India’s Pioneer in Warship Exports
GRSE has a proven legacy of defence and engineering exports. GRSE built and delivered the CGS Barracuda to Mauritius in 2014 (India’s first warship export) and exported the Fast Patrol Vessel SCG PS Zoroaster to the Seychelles Coast Guard in 2021.
Expanding the Commercial Order Book
GRSE’s export business has two ongoing projects with a total value of approximately ₹1,481 crore, which accounts for about 8% of its order book. In a big breakthrough for its commercial shipbuilding ambitions, GRSE secured an export order for Multipurpose Vessels for a German client.
The initial contract for 4 vessels was subsequently expanded to 8, and the management recently confirmed that the order has further increased to 12 vessels. The deliveries will commence in Q2FY27 and continue through FY29.
Monetizing Global Weapon Exports
GRSE is constructing a 1,000-meter cube advanced dredger for the Government of Bangladesh. The project is valued at approximately ₹95 crore and is on track to be completed by Q3FY27. Beyond the existing order, GRSE is seeing a surge in global demand, driven largely by European shipowners shifting away from traditional shipbuilders in China and South Korea.
GRSE is currently receiving a large number of inquiries from European countries, particularly the Netherlands, Germany, Sweden, Norway, and Belgium. Additionally, it is also gaining a foothold among Middle Eastern and ASEAN clients.
To boost exports to friendly nations, GRSE has strategically identified certain non-defence products, including sea-going ferries, offshore multi-purpose vessels, tugs, dredgers, barges, and zero-emission e-ferries. GRSE recently partnered with a foreign collaborator and local MSMEs to indigenize 30mm naval surface guns.
As part of this agreement, GRSE has secured the rights to export these weapon systems globally. Once these guns have stabilized through active deployment with the Indian Navy, GRSE plans to aggressively pursue opportunities that management describes as having “huge” export potential.
Additionally, GRSE has signed a Memorandum of Understanding (MoU) with Naval Group S.A. of France to cooperate in supplying Offshore Patrol Vessels to friendly foreign nations.
Massive Infrastructure Scaling in Gujarat
GRSE is aggressively pursuing brownfield modernizations in Kolkata and greenfield expansions in Gujarat (Kandla and Bhavnagar). These facilities are expected to become fully operational in the next 3 to 5 years, which will critically enhance GRSE’s ability to execute massive export orders concurrently with its domestic naval commitments.
GRSE Share Price
#3 Cochin Shipyards: Riding the ‘Green Wave’ with a ₹40,000-crore export pipeline
Cochin Shipyard (CSL) entered the export market in the 2000s and has a strong global footprint in the maritime export market. It has built and delivered vessels for various clients across the USA, the Netherlands, Norway, Saudi Arabia, the UAE, Cyprus, the Bahamas, and Liberia.
CSL has expanded its international operations, and its export revenue rose to ₹728 crore in FY25. Its commercial export order book comprises 27 vessels, with a total order value of ₹4,200 crore. As of Q1FY26, commercial exports accounted for 20% of CSL’s total order book.
Leading the Global Green Transition
A strategic differentiator for CSL is its rapid traction among its export clients in the green and next-generation vessel segments. Around 39% of the company’s commercial backlog comprises low-emission, predominantly export-oriented platforms. This shift aligns with global energy transition trends and presents CSL with unique opportunities.
Landmark LNG Deal with CMA CGM
CSL’s commercial export narrative has been significantly reinforced by two major breakthrough contracts. In a landmark deal, CSL secured an order valued at around ₹3,250 crore to construct six TEU LNG-fuelled feeder container vessels for the French shipping giant CMA CGM.
This is the first time that a major global container carrier has placed an order for LNG-fueled vessels at an Indian shipyard, with delivery scheduled between 2029 and 2031. These wins are key as they improve CSL’s near-term order book and reduce the company’s historical reliance on singular, large-scale domestic defence programs.
Winning Mega Electric Tug Contracts
CSL signed a contract worth ₹250-500 crore with Svitzer, a global leader in sustainable towage, for 4 fully electric ‘TRAnsverse 2600E’ tugs. These 70-ton bollard pull vessels are slated for delivery starting in 2027. This contract includes an option for up to four additional vessels
Looking ahead, the opportunity pipeline for CSL remains substantial, with an estimated ₹40,000 crore pipeline targeted at Europe-focused commercial export vessels. By scaling its green-vessel exports alongside its expanding ship-repair franchise, CSL is well positioned to capitalize on export demand.
Cochin Share Price
Comparing the Giants: Valuations and Return Ratios
Mazagon’s return ratios (Return on Capital Employed and Return on Equity) are the strongest among peers, followed by GRSE and Cochin. But valuations have eased of late. All three companies are trading at a premium to their historical multiples. On the other hand, Mazagon is trading in line with the industry multiple, while GRSE is trading at a discount and Cochin at a premium.
| Valuation Comparison (X) | |||||
| Company | P/E | 5Y Median P/E | Industry P/E | RoCE (%) | RoE (%) |
| Mazagon | 38.9 | 29.5 | 38.9 | 43.2 | 34.0 |
| GRSE | 39.3 | 32.1 | 51.4 | 36.6 | 27.6 |
| Cochin | 49.5 | 36.7 | 38.9 | 20.4 | 15.8 |
| Source: Screener.in (Data as of April 1, 2026) | |||||
India’s shipbuilding sector is entering a structurally stronger phase, supported by rising global diversification and export momentum. Companies like MDL, GRSE, and Cochin Shipyard are positioning themselves to capture this shift. Execution and order inflow will determine how consistently this opportunity ultimately delivers returns to shareholders.
It’s worth keeping them in your watchlist.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternate, widely accepted, and widely used source of information.
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About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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