Shares of Garden Reach Shipbuilders (GRSE) fell nearly 1.5% amid a market rally on Wednesday following the defence firm’s latest earnings call.
The shipbuilder said it expects “topline and bottomline growth over the next two financial years to be similar to the last fiscal.”
In the current session, GRSE stock slipped 1.45% to Rs 2565.70 on BSE. Market cap of the firm stood at Rs 29,520 crore. On BSE, around 0.63 lakh shares changed hands amounting to a turnover of Rs 16.34 crore.
The multibagger stock climbed 244% in two years and rallied 868% in three years.
The company’s order book stood at ₹21,700 crore at the end of the June quarter, down from ₹22,680 crore the previous year. GRSE is currently negotiating a contract for the next generation corvette project, valued at approximately ₹25,000 crore. “GRSE expects the contract to be awarded to the company either in December 2025 or by the end of financial year 2026,” further consolidating its future revenue streams.
The company reported a significant 38% increase in net profit for the first quarter, reaching ₹87 crore, alongside a revenue rise of 30% to ₹1,010 crore. The expansion in margins by 297 basis points to 5.58% highlights operational efficiency. GRSE anticipates that “the Navy and Coast Guard is also likely to post several large request for proposals (RFPs) over the next 18 months,” potentially offering substantial business opportunities. The order value of the RFP for the Navy’s P-17 Bravo project is anticipated at ₹70,000 crore, to be divided between two shipyards.
In efforts to enhance its shipbuilding capabilities, GRSE announced “it intends to increase its shipbuilding capacity to 32 concurrent ships from the present 28 ships,” and “it is planning to set up a greenfield shipbuilding facility within West Bengal.”
The firm is also considering establishing a new shipyard on either the west or east coast of India to bolster its production capabilities further. Additionally, the company plans to acquire another dry dock in Kolkata to augment repair capacities. These strategic developments are set to boost GRSE’s competitive edge in the shipbuilding industry, positioning it favourably for future naval contracts.
In FY25, GRSE’s profit after tax (PAT) rose to Rs 527 crore, marking a 48% rise from Rs 357 crore in FY24. Revenue from operations in FY25 increased by 41%, amounting to Rs 5,076 crore compared to Rs 3,593 crore in FY24.
The EPS for FY25 climbed to Rs 46.04 from Rs 31.19 in the previous year. Additionally, earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 42%, totaling Rs 756 crore in FY25, up from Rs 534 crore in FY24.
Garden Reach Shipbuilders& Engineers is mainly engaged in the construction of warships.
Meanwhile, Sensex rose 227 pts to 81,872 and Nifty gained 76 pts to 25,056 in the afternoon trading session today.