The shares of PSU Defense company, specializing in the construction of warships and vessels for the Indian Navy and Coast Guard, jumped upto 5 percent upon signing two MoUs, one with Berg Propulsion and another with SunStone.
With a market capitalization of 37,087.93 Crores on Monday, the shares of Garden Reach Shipbuilders & Engineers Ltd jumped upto 5.2 percent, making a high of Rs. 3417.15 compared to its previous closing price of Rs. 3246.9.
Garden Reach Shipbuilders & Engineers Ltd, engaged in the construction of warships and vessels for the Indian Navy and Coast Guard, has signed two MoUs with International customers.
The MoU was signed during an official visit to Sweden and Denmark. The first MoU is with Berg Propulsion, Sweden, to collaborate on manufacturing marine propulsion systems, enhancing GRSE’s capabilities for government projects.
This MoU is a strategic move to strengthen GRSE’s presence in the marine equipment market by combining the expertise of both companies to manufacture propulsion equipment, especially for current and future government projects. Along with it, the second MoU, signed on 6th June 2025 with SunStone, Denmark, aims to explore future collaboration in the field of expedition cruise vessels.
Financials & Others
The company’s revenue rose by 60 percent from Rs. 1,091.65 crores to Rs. 1,755.98 crores in Q4FY24-25. Meanwhile, Net profit rose from Rs. 111.6 crores to Rs. 244.25 crores in the same period.
The company is debt-free and has maintained a strong average ROCE of 15.5 percent over the last three years, with promoter shareholding above 65 percent. It has also demonstrated solid growth, achieving an average three-year revenue growth of 26.99 percent and net profit growth of 23.53 percent.
The management expects to maintain an EBITDA margin of around 13 percent, emphasizing that this level is sustainable and not a one-time occurrence. Along with it, as of 31 March 2025, the company’s order book stands strong at Rs. 22,680 crore, remaining steady despite about Rs. 5,000 crore in revenue earned during FY25.
Garden Reach Shipbuilders & Engineers Limited (GRSE) is a leading defence shipyard based in Kolkata, India. The company specializes in building and repairing a wide range of naval and commercial vessels, including frigates, corvettes, fleet tankers, research ships, dredgers, tugboats, and bulk carriers.
GRSE’s products include advanced warships for the Indian Navy and Coast Guard, oceanographic and acoustic research vessels, landing craft utility ships, and export vessels for international clients. The company also provides specialized engineering solutions such as pre-fabricated steel bridges and marine propulsion systems.
Major clients of GRSE include the Indian Navy, Indian Coast Guard, Ministry of Earth Sciences, DRDO, and friendly foreign countries like Mauritius, Seychelles, Guyana, Bhutan, Nepal, Myanmar, and Sri Lanka.
Written by Sridhar J
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