GRSE shares zoom 11% in 2 days after strong Q3; brokerages split on outlook

GRSE share price today: GRSE shares advanced following a strong Q3FY26 performance. Total income rose 46 per cent year-on-year (Y-o-Y) to ₹1,958 crore in Q3FY26 from ₹1,343 crore in Q3FY25.

Garden Reach Shipbuilders share price today: Garden Reach Shipbuilders & Engineers (GRSE) shares extended their rally on Friday, rising as much as 8.01 per cent to an intraday high of ₹2,790 per share.

 

The stock has gained 10.73 per cent over the last two trading sessions, including Friday’s move.

 

At around 12:20 pm, GRSE shares were trading 6.97 per cent higher at ₹2,763 per share. In comparison, the BSE Sensex was down 0.51 per cent at 82,143.07.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why did GRSE shares extend gains today?

 

GRSE shares advanced following a strong December quarter (Q3FY26) performance. Total income rose 46 per cent year-on-year (Y-o-Y) to ₹1,958 crore in Q3FY26 from ₹1,343 crore in Q3FY25.

 

 

Profit after tax (PAT) surged 74 per cent to ₹171 crore in Q3FY26, compared with ₹98 crore in the year-ago quarter. Revenue from operations climbed 49 per cent Y-o-Y to ₹1,896 crore from ₹1,271 crore.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 59 per cent to ₹234 crore in Q3FY26 from ₹147 crore in Q3FY25, while profit before tax (PBT) grew 63 per cent to ₹218 crore from ₹134 crore. Earnings per share stood at ₹14.91 in Q3FY26, up from ₹8.57 in Q3FY25.

Garden Reach Shipbuilders stock: Buy, sell or hold?

Elara Capital

 

According to Elara Capital analysts, GRSE reported strong topline growth in Q3FY26, driven by its bell-curve execution cycle as several large projects approached peak execution, along with margin expansion supported by operating leverage and likely lower provisioning. The company reiterated a positive outlook backed by strong order visibility, which is expected to aid order book replenishment from FY29.  However, analysts believe this remains some distance away, with execution of new orders expected to ramp up only gradually. The brokerage lowered its sum-of-the-parts (SoTP) target price to ₹2,030 from ₹2,200 after rolling forward estimates by a quarter and reiterated its ‘Sell’ rating, citing expectations that growth is likely to peak in FY27.  ALSO READ | Walchandnagar Industries shares zoom 14% on healthy Q3 show; revenue up 37%

Antique Stock Broking

 

Those at Antique Stock Broking said, Garden Reach Shipbuilders & Engineers delivered better-than-expected revenue growth, led by steady execution of frigates and anti-submarine warfare corvettes. Standalone Ebitda rose 128 per cent Y-o-Y to ₹170 crore, exceeding estimates, supported by a 314 bps expansion in margins to 9.1 per cent. The company currently has the capacity to construct 32 vessels simultaneously, with an order book of around ₹20,000 crore and major projects scheduled for execution over the next two years. GRSE has emerged as the lowest bidder (L1) for the next-generation corvette order valued at over ₹30,000 crore, which is expected to be finalised by March 2026.  Beyond defence, the company is focusing on shipbuilding and green energy platforms such as hybrid ferries and green tugs, which offer meaningful growth opportunities. Antique broadly retained its estimates and maintained a ‘Buy’ rating with an unchanged target price of ₹3,026, based on a core valuation multiple of 40 times FY28 earnings.   

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