Synopsis:
Garden Reach Shipbuilders & Engineers jumped sharply after reporting a 30 percent and 38 percent growth in revenue and net profit respectively, on a year-on-year basis. However, on a QoQ basis, it performed poorly.
The shares of this leading miniratna PSU defence stock are in focus after delivering a robust double-digit growth in the first quarter of this financial year. In this article, we will dive more into the details.
With a market capitalization of Rs 29,759 crore, the shares of Garden Reach Shipbuilders & Engineers Ltd are currently trading at Rs 2,595 per share, representing a 27 percent decline from its 52-week high of Rs 3,535 per share. In the last one year, the stock has delivered a positive return of 29 percent.
Q1 Highlights
GRSE’s revenue for Q1 FY26 came in at Rs 1,310 crore, registering a 30 percent growth from Rs 1,010 crore in the same quarter last year. However, on a sequential basis, revenue declined by 20 percent from Rs 1,642 crore in Q4 FY25. EBITDA too grew by 42 percent to Rs 184 crore in Q1 FY26 as compared to Rs 130 crore in the same quarter last year.
Coming to its profitability, the company reported a net profit growth of 38 percent to Rs 120 crore in Q1 FY26 as compared to Rs 87 crore in Q1 FY25. However, on a QoQ basis, it declined by 51 percent from Rs 244 crore.
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) is a government-owned shipyard under the Ministry of Defence and a Miniratna Category I company. Started in 1884 as a small workshop, it was taken over by the government in 1960 and built India’s first warship, INS Ajay, in 1961.
GRSE has delivered over 800 vessels, including 112 warships for India and other countries, and is the only Indian shipbuilder with four shipyards. It also makes engines, deck machinery, steel bridges, and marine pumps. With modern facilities, it can build 28 ships at once and has won several awards for excellence.
Written by Satyajeet Mukherjee
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