India’s defence sector is drawing investor attention this week as four public sector undertakings (PSUs)—Garden Reach Shipbuilders, Cochin Shipyard, Mazagon Dock Shipbuilders, and Bharat Dynamics—approach their dividend record dates. With robust financial performance in Q1FY26 and consistent shareholder rewards, these stocks are poised to remain in focus for both institutional and retail investors.
The dividend announcements come amid rising defence allocations, export orders, and strategic partnerships, reinforcing the sector’s long-term growth narrative. Investors holding shares before the respective record dates will be eligible for the declared payouts, making timing a key consideration.
Key Highlights From The Dividend Calendar
- Garden Reach Shipbuilders and Cochin Shipyard have fixed September 12, 2025, as their record date
- Mazagon Dock Shipbuilders and Bharat Dynamics will determine eligible shareholders on September 19, 2025
- Dividend payouts range from ₹0.65 to ₹4.90 per share
- Year-to-date returns for these stocks range between 8 percent and 50 percent, reflecting strong investor sentiment
Garden Reach Shipbuilders & Engineers Ltd (GRSE)
GRSE has declared a final dividend of ₹4.90 per share for FY25, with a face value of ₹10. The record date is set for September 12, 2025. The dividend will be paid within 30 days of the company’s 109th annual general meeting.
Q1FY26 performance highlights:
- Revenue from operations rose 30 percent year-on-year to ₹1,310 crore
- Net profit surged 38 percent to ₹120 crore
- EBITDA increased 42 percent to ₹184 crore, indicating improved cost efficiency
With a year-to-date return of 49.6 percent, GRSE continues to reward shareholders while maintaining strong execution capabilities in naval shipbuilding and defence exports.
Cochin Shipyard Ltd
Cochin Shipyard has announced a final dividend of ₹2.25 per share, with a face value of ₹5. The record date is also September 12, 2025. The company has shown steady growth in both commercial and defence shipbuilding segments.
Q1FY26 performance highlights:
- Net profit rose 7.9 percent year-on-year to ₹187.8 crore
- Consolidated revenue increased 38.5 percent to ₹1,068 crore
Cochin Shipyard has delivered an 8.3 percent return so far this year, supported by a healthy order book and expansion into green shipbuilding technologies.
Mazagon Dock Shipbuilders Ltd
Mazagon Dock has declared a final dividend of ₹2.71 per share, with a face value of ₹5. The record date is September 19, 2025. The company remains a key player in submarine and warship construction for the Indian Navy.
Year-to-date return stands at 25.2 percent, driven by strategic contracts and timely project deliveries. The dividend reflects the company’s commitment to shareholder value amid rising defence capital expenditure.
Bharat Dynamics Ltd (BDL)
BDL has announced a final dividend of ₹0.65 per share, with a record date of September 19, 2025. The company specializes in missile systems and tactical weaponry, playing a critical role in India’s defence modernization.
With a year-to-date return of 33.1 percent, BDL has benefited from increased procurement orders and export opportunities. The dividend, though modest, signals financial stability and operational consistency.
Investor Considerations And Sector Outlook
The defence sector continues to benefit from policy tailwinds, including Make in India initiatives, export facilitation, and increased budgetary allocations. These four PSUs have demonstrated strong fundamentals, consistent profitability, and shareholder-friendly practices.
Investors looking to capture dividend income must ensure shareholding before the respective record dates. Given the T+1 settlement cycle, the last eligible trading day for GRSE and Cochin Shipyard is September 11, while for Mazagon Dock and BDL it is September 18.
Forward Outlook
As India’s defence manufacturing ecosystem matures, these companies are expected to play a pivotal role in strategic self-reliance and global partnerships. Dividend payouts, coupled with operational growth, make them attractive long-term bets for value-focused investors.
Sources: Upstox Market News, Elite Wealth Dividend Update, Economic Times Dividend Tracker
