What's behind the 157% surge in Garden Reach Shipbuilders from March low?

GRSE share price: In the past three weeks, the stock price of the state-owned shipbuilding company has surged 71 per cent after it reported strong earnings for the quarter ended March 2025

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Garden Reach Shipbuilders & Engineers (GRSE) share price today

 

Garden Reach Shipbuilders & Engineers (GRSE)  shares hit a new high of ₹3,031 on the BSE today, as they rallied 5 per cent in Thursday's intraday trade on a healthy business outlook.

 

In the past three weeks, the stock price of the state-owned shipbuilding company has surged 71 per cent after it reported strong earnings for the quarter ended March 2025 (Q4FY25). GRSE share price has more-than-doubled, zooming 157 per cent, from its three-month low price of ₹1,180.10 which it touched on March 3, 2025.

 

At 10:38 AM, GRSE shares were quoting 3 per cent higher at ₹2,974.10 as compared to 0.05 per cent rise in the BSE Sensex.

 

GRSE Q4 results

 

In the March 2025 quarter (Q4FY25), GRSE's revenue from operations moved up from ₹1,015 crore to ₹1,642 crore, registering a growth of 62 per cent year-on-year (Y-o-Y). Earnings before interest, taxes, depreciation and amortisation (Ebitda) moved up from ₹166 crore to ₹335 crore, registering a growth of 101 per cent Y-o-Y, and the profit after tax climbed from ₹114 crore to ₹244 crore, registering a 118 per cent growth Y-o-Y.

 

This has been backed by a very strong physical performance, supported by an efficient and effective treasury management system, the management said.

 

GRSE becomes L1 bidder for NGC Project

 

On May 22, 2025, GRSE informed the stock exchanges that the company has bagged ₹25,000-crore order from the Indian Navy.

 

"During the Commercial Negotiation Committee (CNC) meeting convened by the Ministry of Defence (MoD) for opening of commercial bids for the acquisition of eight Next Generation Corvettes (NGC) on May 21, 2025, the Commercial bids were opened and it was noted that GRSE became the lowest bidder (L1) for Construction of NGC for Indian Navy. The L1 bidder will be awarded five NGC ships at a likely value of more than ₹25,000 crore," GRSE said in an exchange filing.

 

GRSE order book 

 

As on March 31, 2025, the company's order book stood at ₹22,652 crore. Further, despite the strong revenue accrual to the tune of nearly ₹5,000 crore, the management said the company managed to maintain the order book at ₹22,680 crore as on March 31, 2025.

 

This comprises nine projects, consisting of 40 platforms, including 16 warships for the Indian Navy from 4 projects, three P-17 Alpha Frigates, 7 Anti-Submarine Shallow Watercraft, 2 Survey Vessels Large and 4 Next Generation Offshore Patrol Vessels.

 

Meanwhile, the robust shipbuilding order pipeline, including large orders, such as the P-17 Bravo Frigates (eight units for ₹70,000 crore), the Next Generation Corvettes (NGC); eight units of ₹40,000 crore, project likely to be awarded in FY26, 18 next generation fast patrol vessels worth ₹3,000 crore, five next generation survey vessels worth ₹3,500 crore, 31 waterjet fast attack craft worth ₹3,000 crore, 12 mine countermeasure vessels worth ₹32,000 crore and several small projects of ₹1,500-₹3,000 crore.

 

Elara Capital on GRSE

 

According to analysts at Elara Capital, GRSE positively surprised on the top line in Q4FY25, led by execution ramp-up along with margin expansion due to operating leverage and provision reversal. Management reiterated its positive outlook with a strong order visibility, which will replenish order book from FY29. The company could be a potential beneficiary of the commercial shipbuilding thrust by the government, it said.

 

The brokerage, however, has downgraded GRSE stock to 'Sell' from 'Accumulate' as growth is likely to peak in FY27. Besides, the stock has seen a sharp rally over the past three months, outperforming the Nifty index during the period. The brokerage firm expects an EPS CAGR of 2 per cent during FY25-28E with an average ROE of 26 per cent during FY26-28E.

 

About Garden Reach Shipbuilders

 

Garden Reach Shipbuilders & Engineers is a shipbuilding company operating under the Ministry of Defence. Headquartered in Kolkata, Garden Reach Shipbuilders plays a vital role in strengthening India's maritime capabilities, primarily focusing on the construction of sophisticated warships and vessels for the Indian Navy and Coast Guard.

 

In addition to defence projects, the company also undertakes the construction of commercial vessels, highlighting its versatility in shipbuilding.

 

Beyond its core shipbuilding operations, the company has diversified into engineering and engine-related activities. It manufactures a wide range of marine and industrial products including deck machinery, prefabricated steel bridges, and marine pumps. Its engine division specialises in the assembly, testing, and overhauling of MTU diesel engines. With a proven track record of delivering over 100 warships to Indian defence forces, Garden Reach Shipbuilders is also recognised as a major exporter in the global warship market. Its main shipbuilding facility is located at the Rajabagan Dockyard in India.