Garden Reach Shipbuilders & Engineers Ltd is a premier shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. GRSE is a diversified, profit making and the first Shipyard in the country to export warships and deliver 100 warships to the Indian Navy and Indian Coast Guard. Established in 1884, GRSE has a long and rich history, making it one of the oldest shipyards in India.
It owns 3 separate shipbuilding facilities close to each other in Kolkata. The ships are built at the Main Works Unit and the Rajabagan Dockyard. GRSE is operating with a modern, modular infrastructure, which is capable of building up to 20 vessels simultaneously across three production units.
Shipbuilding Segment (89% of revenues) GRSE shipbuilding division consists of the construction of vessels for clients engaged in the defense sector shipping industry. Its build vessels i.e. Frigates, missile corvette, anti-submarine warfare corvette, survey vessel, offshore patrol vessel, etc. GRSE has delivered over 100 warships, including stealth frigates (P17A), anti-submarine corvettes (Kamorta-class), missile corvettes, amphibious platforms, petrol vessels, and survey ships.
The company has strategically diversified its operations beyond shipbuilding. Engineering Division: It is known for pre-fabricated Bailey bridges. GRSE has supplied over 5,300 units to the Army, Border Roads Organisation (BRO), State Public Works Departments (PWDs), and international clients. Engine Division: In partnership with MTU Friedrichshafen GmbH (Germany), GRSE's Ranchi facility assembles and tests marine diesel engines, which supports indigenisation under Make in India.
GRSE has demonstrated exceptional financial performance in FY25. Revenue from operations in FY25 increased by 41%, amounting to Rs 5,076 crore compared to Rs 3,593 crore in FY24. In terms of overall performance for FY25, Profit After Tax (PAT) reached Rs 527 crore, marking a 48% growth from Rs 357 crore in FY24.
For Q4 FY25, the company showcased remarkable growth. Net profit surged by an impressive 118.9% year-on-year, reaching Rs 244.2 crore for the fourth quarter, compared to Rs 111.6 crore in the same period last year. Revenues from operations also saw a significant increase of 61.7% year-on-year, totaling Rs 1,642 crore, up from Rs 1,015.7 crore in the March 2024 quarter.
**Key Financial Metrics (FY25):**
- Revenue from Operations: Rs 5,076 crore (41% growth YoY)
- Net Profit: Rs 527 crore (48% growth YoY)
- EBITDA: Rs 756 crore (42% growth YoY)
- EPS: Rs 46.04 (vs Rs 31.19 in FY24)
- Market Cap: Rs 34,067 crore (as of latest data)
GRSE has been actively expanding its global footprint and forging strategic partnerships. GRSE signed MoI with M/s Carsten Rehder Schiffsmakler and Reederei GmbH & Co. KG Germany for the construction of four (04) follow-on 7500 DWT Multi-Purpose Vessels. The firm contract for the vessels is expected to be finalized by 31 Aug 2025.
The company has also ventured into new markets. MoU with M/s Aries Marine a Dubai based established and independent engineering and design firm for offshore Platform and vessel design. This MoU aims to facilitate collaboration on identifying and developing offshore orders for platforms designed by Aries and built by GRSE.
The order book stands at ₹239 billion, with significant upcoming projects, including bids for Next-Generation Corvettes and P17 Bravo frigates. It said the firm has a strong order book with major projects on track to be executed in the next 3–4 years. "It comprises three P17A stealth frigates (all three are scheduled for delivery in FY26E/ 27E), eight anti-submarine warfare shallow water crafts, a survey vessel large project, and next-generation offshore patrol vessels.
With our expertise in building state-of-the-art warships for the Indian Navy and Indian Coast Guard, we are now aggressively pursuing business opportunities for naval platforms in friendly foreign countries. Warships built by GRSE have already been exported to friendly foreign nations. However, the company has also diversified its exports, delivering vessels to Mauritius, Seychelles, Bangladesh, and Guyana, and supplying bridges to Bhutan, Nepal, Sri Lanka, and Myanmar.
Promoter holding in Garden Reach Shipbuilders & Engineers Ltd has gone up to 74.50 per cent as of Mar 2025 from 74.50 per cent as of Jun 2024. The Government of India maintains significant control over the company as it operates under the Ministry of Defence.
The company has maintained a healthy dividend policy. The board recommended a final dividend of Rs 4.90 per equity share for FY25, subject to the approval of the shareholders. Garden Reach Shipbuilders announces an interim dividend increase to Rs 8.95 per share for FY 2024-25, while facing a Rs 180 crore order cancellation from Bangladesh without explanation.
With strong government support, a healthy order book, and a growing presence in export markets, GRSE is evolving into an important player in the Make in India defence ecosystem. And with the recent positive momentum in its stock price, investors are thinking about this company as a long-term compounder.
The company's strategic focus on modernization, diversification into commercial shipbuilding, and expanding international presence positions it well for future growth. With India's increasing defense spending and the government's push for indigenization under the 'Make in India' initiative, GRSE stands to benefit significantly from the evolving defense landscape.
