This Defence PSU stock which deals in the business of shipbuilding focused on the requirements of the Indian Navy and the Indian Coast Guard, expects to reach an order book of Rs. 40,000 crore in FY26.
Share Price Movement
In the trading session, Garden Reach Shipbuilders & Engineers Ltd‘s share price closed at Rs. 1,331.10 per equity share which is 0.39 percent lower than the previous closing price of Rs. 1,336.30 per equity share.
In the past year, the stock has delivered around 63.30 percent and has outperformed the Nifty Index in the past year.
Order Book Guidance & other plans
The company has a current order book of Rs. 23,877 crore which includes 10 projects and 40 platforms as of the 31st December 2024.
As per the recent interview with sources, the Chairman and Managing Director, PR Hari expects GRSE to cross Rs. 40,000 crore order book by the end of FY26.
He said “The orders in hand are in a maturity level where the revenue recognition is on the right face. Second, the new orders that we are expecting naturally will start giving us revenue from FY27 or FY28 onwards.”
The company is confident to maintain 8 percent PAT margins in the coming years. GRSE plans to move on to export commercial ships and ship repairs as the margins are relatively higher. Further, the Garden Ship expects to sign 2 more contracts in FY25 as per sources.
Q3FY25 Financial Performance
In its latest filing for the quarter ending December 2024, the company reported a 37.70 percent rise in revenue, reaching Rs.1,271 crore compared to Rs.923 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue rose by 10.23 percent from Rs.1,153 crore in Q2FY25.
During the same period, net profit increased by 11.36 percent to Rs.98 crore in Q3FY25, compared to Rs.88 crore in Q3FY24, and it was consistent quarter on quarter basis with Rs.98 crore.
The company is exempted from declaring its segment from the Ministry of Corporate Affairs (MCA) as it operates under Defence production.
Company Profile
Garden Reach Shipbuilders & Engineers Ltd. is a leading Indian warship builder under the Ministry of Defence, catering to the Indian Navy and Coast Guard. It offers shipbuilding, repair services, and engineering products like prefabricated bridges and deck machinery. GRSE has built over 785 platforms, including 108 warships.
Written by – Santhosh S
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