Garden Reach Shipbuilders & Engineers (GRSE), the Kolkata-based defence PSU under the Ministry of Defence, reported its strongest-ever quarterly and annual financial performance on April 28, 2026. The results triggered a 16% single-session surge in the stock — one of the biggest gains for a defence PSU in recent memory.
Q4 FY26 Key Numbers
- Net Profit (Q4): Rs 303 crore — up 24% YoY from Rs 244 crore
- Revenue (Q4): Rs 2,119 crore — up 29% YoY from Rs 1,642 crore
- EBITDA (Q4): Rs 355 crore — up 61% YoY
- EBITDA Margin (Q4): 16.8% — expanded 331 basis points YoY from 13.5%
Full Year FY26 — Every Metric at a Record
- Revenue (FY26): Rs 7,002 crore — up 38% YoY from Rs 5,076 crore in FY25
- PAT (FY26): Rs 748 crore — up 42% YoY from Rs 527 crore
- EBITDA (FY26): Rs 1,070 crore — up 41% YoY
What Drove the Numbers — 8 Ships in 12 Months
GRSE delivered 8 warships to the Indian Navy in FY26 — one ship every 45 days. Deliveries included 2 Project 17A frigates, 2 Survey Vessel Large (SVL) ships, and 4 Anti-Submarine Warfare Shallow Water Craft (ASW-SWC). On one remarkable day during the year, the company simultaneously delivered 3 warships. CMD Cmde PR Hari called it “a credible achievement by any standards.”
Margin Surprise — What Antique Says
Antique Stock Broking raised its target price on GRSE to Rs 3,141 from Rs 3,026, maintaining a ‘Buy’ rating. The brokerage noted the EBITDA margin beat was driven by a reassessment of revenue and costs on projects in advanced stages — resulting in a net increase in profit of the current year. As warship projects approach completion, management gains better visibility on final profitability, and excess provisions are written back.
Order Book and the Big ₹33,000 Crore Opportunity
GRSE’s current order book stands at approximately Rs 17,000 crore, equivalent to 2.4x FY26 revenue. The company is the L1 (lowest) bidder for the Next Generation Corvette (NGC) contract worth approximately Rs 33,000 crore. If signed, the order book would jump to Rs 50,000 crore. Price negotiations are complete and contract finalisation is expected in Q1 FY27.
Beyond NGC, the addressable pipeline includes P-17B frigates (Rs 70,000 crore), Landing Platform Docks (Rs 35,000 crore), and Mine Counter Measure Vessels (Rs 32,000 crore) — a combined opportunity of approximately Rs 1.55 lakh crore.
Dividend
The board declared a final dividend of Rs 6.70 per share for FY26. Combined with two interim dividends paid during the year, total FY26 dividend stands at Rs 19.60 per share, up from Rs 13.60 in FY25.
Stock & Valuation
GRSE shares surged to an intraday high of Rs 3,275 on April 29, up nearly 49% in April 2026 alone. The 52-week range is Rs 1,622–Rs 3,538. At current levels, the stock trades at a premium valuation — investors should be aware that high expectations are already priced in.
Disclaimer: This article is for informational purposes only. Not investment advice. Read our full Disclaimer.
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