GRSE Shares Surge 15% on Back of Strong Q4 Financials, Boosting Shipyard Sector

Garden Reach Shipbuilders & Engineers Ltd Sees 24% Rise in Net Profit

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) surged up to 15% on April 29, following the company's announcement of a 24% rise in net profit to Rs 303 crore.

The defence company's consolidated revenue from operations recorded a significant 29% rise to Rs 2,119 crore in the March quarter, compared to Rs 1,642 crore in the same period a year ago. This substantial growth is a notable achievement for the company.

Garden Reach Shipbuilders & Engineers Ltd's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 27.3% to Rs 426 crore in Q4FY26, as against Rs 335 crore in Q4FY25. This increase in EBITDA is a testament to the company's robust financial performance.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The company's Chairman and Managing Director, Cmde PR Hari, IN (Retd), highlighted the significance of FY26, stating that it marks a landmark year for GRSE. The company delivered 08 warships during the year, a credible achievement by any standards, given the pace of one warship every one and a half months. The company aims to maintain this tempo in the years ahead through capability enhancement, new technology adoption, and calibrated business diversification.

The Garden Reach Shipbuilders' board of directors recommended a final dividend of Rs 6.7 per share for the financial year ended 2025-26.

The company's shares were trading 8% higher at Rs 3,111.4 apiece at 12:10 pm on April 29, sparking a rub-off effect in its peers like Mazagon Dock and Cochin Shipyard, which were trading 3.5% and 2.5% higher, respectively.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Nifty India Defence was trading higher for the third straight session and the sixth out of seven sessions. At 12:20 pm on April 29, the Nifty India Defence index climbed 1.4%, with GRSE, Mazagon Dock, and Cochin Shipyard leading the gains.