Synopsis:
Garden Reach Shipbuilders & Engineers Limited, a Defence stock, reports 45.49% YoY revenue growth and a 57.30% YoY net profit surge in Q2 FY26 results, and announced a dividend of ₹5.75 per equity share.
This Mid-cap Defence stock, engaged in building and repairing warships and commercial vessels for the Indian Navy, Coast Guard, and foreign clients, jumped 4 percent after the company reported September quarterly results with a 57.30 percent YoY increase in net profit and announced a dividend of Rs. 5.75 per equity share.
With a market capitalization of Rs. 29,602.53 crores, the share of Garden Reach Shipbuilders & Engineers Limited has reached an intraday high of Rs. 2,650 per equity share, rising nearly 3.66 percent from its previous day’s close price of Rs. 2,556.35. Since then, the stock has retreated and is currently trading at Rs. 2,584.20 per equity share.
Q2 FY26 Result Walkthrough
Coming into the quarterly results of Garden Reach Shipbuilders & Engineers Limited, the company’s consolidated revenue from operations increased by 45.49 percent YOY, from Rs. 1,152.92 crore in Q2 FY25 to Rs. 1,677.38 crore in Q2 FY26, and grew by 28.06 percent QoQ from Rs. 1,309.86 crore in Q1 FY26.
In Q2 FY26, Garden Reach Shipbuilders & Engineers Limited’s consolidated net profit increased by 57.30 percent YOY, reaching Rs. 153.79 crore compared to Rs. 97.77 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 27.97 percent, from Rs. 120.18 crore. The basic earnings per share increased by 57.26 percent and stood at Rs. 13.43 as against Rs. 8.54 recorded in the same quarter in the previous year, FY2025.
Garden Reach Shipbuilders & Engineers Limited’s revenue and net profit have grown at a CAGR of 28.78 percent and 26.45 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 36.6 percent and 27.6 percent, respectively. Garden Reach Shipbuilders & Engineers Limited has an earnings per share (EPS) of Rs. 53.8, and its debt-to-equity ratio is 0.01x.
Dividend
Garden Reach Shipbuilders & Engineers Limited’s board of directors has recommended paying an Interim Dividend at the rate of 57.50 percent on the face value of paid-up equity shares of Rs. 10 each for the financial year 2025-26, which is a dividend of Rs. 5.75 per equity share.
Additionally, the dividend will be fixed for Tuesday, November 11, 2025, as the Record Date to determine the shareholders eligible to receive the Interim Dividend for FY 2025-26.
Order Book
Garden Reach Shipbuilders & Engineers Limited currently has a strong order book of Rs. 21,700 crore as of June 30, 2025. This order book covers 10 major projects, which together include 40 marine platforms at different stages of construction. A large portion of this work is for the Indian Navy, showing the company’s continued role as a key partner in national defense shipbuilding.
Among the major naval projects, there are 14 warships currently under construction across four major contracts. These include the P-17A advanced frigate project (with two ships still to be delivered), the Large Survey Vessel project (one ship remaining), the Anti-Submarine Shallow Water Craft project (seven ships pending), and the Next-Generation Offshore Patrol Vessel project (four ships to be built). This strong pipeline gives the company steady revenue visibility and long-term growth certainty.
Company Overview
Garden Reach Shipbuilders & Engineers Limited (GRSE) was established in 1884 initially as a small, privately owned workshop on the eastern bank of the Hooghly River in Kolkata. It was renamed Garden Reach Workshop in 1916 and was nationalized by the Government of India in 1960.
Since then, it has grown into a premier Indian shipyard engaged in building and repairing military and commercial vessels, mainly for the Indian Navy and Coast Guard. GRSE was awarded the Miniratna status in 2006, giving it financial and operational autonomy to compete more effectively in the market.
The company is engaged primarily in shipbuilding and repair, constructing a wide range of both advanced warships and smaller vessels, including frigates, corvettes, patrol vessels, fast attack crafts, and specialized ships for coastal defence and maritime activities.
Garden Reach Shipbuilders & Engineers Limited has built over 800 platforms, including over 114 warships, delivering high-quality vessels to both Indian defence services as well as friendly foreign navies. GRSE also manufactures marine engines, deck machinery, steel bridges, and pumps for marine applications. Its ability to design and build indigenous warships is a key part of its operations.
Written By – Nikhil Naik
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