Garden Reach Shipbuilders Share Price Falls; Order Book and Expansion Plans in Focus

Market Performance

Garden Reach Shipbuilders (GRSE) share price slipped 0.8% on Wednesday, August 20, to trade at ₹2,582. The stock has traded mostly unchanged over the past month, even with a strong Q1 performance and multiple defense projects lined up.

Main News

During its earnings call, Garden Reach Shipbuilders stated that topline and bottomline growth over the next two years will mirror FY25 levels. The company continues to rely on a robust order book and upcoming defense contracts to maintain momentum.

Key highlights include:

• Current Order Book: ₹21,700 crore (June 2025 quarter) vs ₹22,680 crore (June 2024 quarter)
• Projects in Hand: 10 projects with 40 marine platforms
• Next Generation Corvette Project: Negotiations underway, estimated at ₹25,000 crore, with final award expected by December 2025 or FY26-end
• Navy’s P-17 Bravo Project: Estimated at ₹70,000 crore, to be split between two shipyards; RFP expected by end of 2025

Company Details

Shipbuilding Capacity

• Current capacity: 28 concurrent ships
• Planned capacity by 2026: 32 concurrent ships
• Expansion: Acquisition of an additional dry dock in Kolkata for ship repairs
• Greenfield plans: Setting up a new shipbuilding facility in West Bengal and a new shipyard on India’s east or west coast

Key Delivery Schedules

• P-17 ALPHA Project:
  • 2nd ship delivery: April 2026
  • 3rd ship delivery: August 2026
• Survey Vessel (Large Project): Final vessel to be delivered by end-2025
• Anti-Submarine Shallow Water Craft:
  • 2nd ship: August 2025
  • 2 more ships: FY26
  • Remaining 4 ships: By end-2026
• Next-Gen Offshore Patrol Vessel: Scheduled completion by FY29

Financial Performance (Q1 FY26)

• Revenue: ₹1,010 crore (+ 30% YoY)
• EBITDA: ₹56 crore (+ 99% YoY)
• EBITDA Margins: 5.58% (up 297 bps YoY)
• Net Profit: ₹87 crore (+ 38% YoY)

Summary

Garden Reach Shipbuilders share price came under slight pressure despite reporting strong Q1 numbers. The company’s ₹21,700 crore order book, ongoing negotiations for large defense projects, and shipbuilding expansion plans highlight its long-term growth potential. However, management indicated that growth trends in FY26 and FY27 are expected to remain at levels similar to FY25.