Frigates, destroyers, corvettes, submarines and auxiliaries built by Indian shipyards - the largest single contracts in defence.
Shipyards build, integrate and fit out warships and submarines, buying in propulsion, weapons and sensors. Navy warships have been ordered from Indian yards for years; the open question is how much of what goes inside a ship is Indian.
The biggest tickets sit here: the ~₹70,000 Cr P75(I) submarine deal for Mazagon Dock was cleared by the Finance Ministry and sent to the Cabinet Committee on Security (reported May-Aug 2026), but was still unsigned as of Oct 2026. The 7 Sep 2026 DAC also approved design, development and purchase of marine gas turbines - a step to make ship engines in India.
Orders are huge but executed over 5-10 years, so revenue is steady once signed. Yards with submarine or destroyer franchises (Mazagon) earn the best margins; GRSE and Cochin earn more from frigates, anti-submarine craft, repairs and exports.