Garden Reach Shipbuilders: Since its inception in 1884, this Kolkata-based shipbuilding powerhouse has left an indelible mark on India’s shipbuilding landscape. Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is more than a company, it’s a century-old legacy and a crucial contributor to the nation’s shipbuilding capabilities. 

With a history spanning over a hundred years, GRSE has successfully navigated the ever-changing currents of the shipbuilding industry. The company was listed on October 10, 2018, and since then the stock of the company has performed exceptionally well with a whopping return of 837.67% return in 5 years. 

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Join us as we dive into the depths of GRSE’S business, explore its order book, and take a closer look at the prospects that have propelled it to the forefront of shipbuilding in India. 

Business Overview

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) traces its origins back to 1884, starting as a workshop for vessel repairs. Acquired by the Government of India in 1960, GRSE has evolved into a premier Warship building Company. 

GRSE’s journey includes significant milestones such as constructing India’s first warship for the Navy in 1961, followed by global projects like the export warship “CGS Barracuda.” The shipyard has delivered over 785 platforms, with a notable 108 warships, establishing it as a leader in Indian shipbuilding. 

Beyond ship construction, GRSE engages in engine production, and engineering, and has received accolades like the Raksha Mantri Award 2022 for designing a silent ship for the Indian Navy’s Anti-Submarine Warfare. Let’s dive into the segments of GRSE and see their contribution to the company’s revenue

Segments: Diversification for Growth 

The revenue distribution for the company is diversified across multiple segments, reflecting a robust and varied business portfolio. In the Contract Revenue segment, Shipbuilding emerges as a significant contributor, accounting for a substantial portion of the total revenue at Rs 2,301.97 crore. 

The Ship Repair and General Engineering components within Contract Revenue also make noteworthy contributions, further adding to the overall revenue stream. Another pivotal segment is the Sale of Products, generating Rs 175.98 crore of revenue. 

Within this category, B & D Spares and Bailey Bridge exhibit substantial figures, indicating a strong market demand for these offerings. Additionally, the Sale of Services segment, with revenue totaling Rs 45.87 crore, is led by Ship Repair services, followed by Bailey Bridge and Diesel Engines services. 

Below is the chart representing the contribution of revenue from these different segments.  

Source: Annual Report

According to the company’s annual reports, it earns 91% of its revenue from the contracts segment while the sale of products and services contribute to around 7% and 2% respectively. 

This diversified revenue structure showcases the company’s ability to excel in both product sales and service provisions, underlining its resilience and adaptability in various market segments. The company operates in three divisions namely, Ship division, Engineering division and Engine division. Let’s look at the company’s order book under these three divisions: 

Order Book of GRSE

Division/Department Closing order Value as on 31 Mar, 2023 (in crore)
A) Ship Division
Ship (including B&D Spares) ₹24,804.49
Ship Repair & AMCs ₹52.30
Total Ship Division ₹24,856.79
B) Engineering Division
Bailey Bridge ₹74.78
Deck Machinery ₹58.95
Total Engineering Division ₹133.73
C) Engine Division 120.77
Total (A+B+C) ₹25,111.29

Source: Annual Report 

The company exhibits a significant reliance on its ship division for order inflow, with the majority of orders originating from this segment. 

The Engineering Division, contributing substantially to the company’s Value of Production (VoP), attained 69.82 crore during the financial year 2022-23. In contrast, the Engine Division achieved a VoP of 22.97 crore during the same period. The Ship Division, being a key driver, recorded an impressive VoP of 2,454.89 crore, underscoring its pivotal role in the company’s overall production and revenue generation. 

This distribution highlights the strategic importance of the ship division, emphasizing its substantial contribution to the company’s operational and financial performance. 

Financial Landscape

GRCE showcased remarkable financial performance in the fiscal year 2022-23, demonstrating substantial growth across key metrics.  Revenue from operations surged impressively by 45.7%, escalating from Rs 1,541 crore in FY22 to Rs 2,561 crore in FY23. 

Correspondingly, the total income also witnessed a robust increase from Rs 1,918 crore to Rs 2,763 crore. The company achieved a commendable 19% YoY growth in EBITDA, with figures elevating from Rs 294.88 crore to Rs 351 crore. Notably, the net profit (PAT) exhibited a solid 20% YoY increase, surging from Rs 189.53 crore to Rs 228 crore. 

The positive trajectory extended to the company’s earnings per share (EPS), which grew by 20%, advancing from 16.55 to 19.91. Reflecting positive investor sentiment, the price-to-earnings (P/E) ratio experienced a significant rise from 13.68 to 22.88. This upward trend indicates a favorable perception among investors. 

Furthermore, GRCE’s net worth recorded a substantial 12.5% YoY increase, reaching Rs 1,413 crore from Rs 1,257 crore. These financial indicators collectively underscore GRCE’s robust performance, financial health, and the confidence it instills in investors. 

Future Prospects

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) anticipates a promising future with the initiation of Next-Generation Offshore Patrol Vessels (NGOPVs) and deliveries for naval projects. Expectations of executing a significant portion of the order book over the next three years and capitalizing on the growth in autonomous defense vehicles and green energy vessels position GRSE for success. 

The company also sees opportunities in the commercial shipbuilding sector, identifying Ocean-going Ferries, Tugs, Dredgers, Barges, and E-Ferries as target products for domestic and global markets. The strong order book, comprising the ongoing order of 19 warships for the Indian Navy, aligns with government initiatives promoting self-reliance in defense. 

GRSE’s strategic entry into the commercial shipbuilding segment and plans to address domestic and global demands showcase a forward-looking approach. The positive outlook is further reinforced by the defense shipbuilding segment’s encouraging landscape, driven by ambitious acquisition plans and government initiatives like Make in India and Export Promotion. 

India’s shipbuilding industry is set to grow significantly due to ambitious plans from the Indian Navy and Coast Guard. Both forces aim to have a fleet of 200 ships each, and their combined shipbuilding program for the next 14-15 years suggests orders for over 150 warships in the coming years. This strategic move reflects a substantial boost to the industry’s order book and underlines the nation’s commitment to enhancing maritime capabilities. 


In conclusion, Garden Reach Shipbuilders & Engineers Ltd. stands as a stalwart in India’s shipbuilding legacy, with a rich history dating back to 1884. Over the years, the company has not just overcome the storms of industry evolution but emerged as a beacon of excellence. Its strategic diversification across shipbuilding, engineering, and engine divisions, coupled with a resilient revenue model, reflects the company’s adaptability. 

The financial performance in FY22-23 depicts a compelling picture of GRSE’s success, with substantial growth in revenue, EBITDA, net profit, and other key financial metrics. The positive outlook is further enhanced by its promising order book, with a focus on defense and the exploration of opportunities in the commercial shipbuilding sector. 

Did you find this article informative? Let us know your thoughts and insights in the comments below. 

Written By Akshita Maloo

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