Shares of Garden Reach Shipbuilders & Engineers (GRSE) soared by more than 10% on May 22 following the company’s announcement that it has emerged as the lowest bidder (L1) for a high-profile ₹25,000 crore Indian Navy contract to construct eight Next Generation Corvettes (NGC). This development represents one of the largest potential defence shipbuilding contracts in recent years and significantly strengthens GRSE’s orderbook position in the strategic naval sector.
Highlights:
GRSE becomes L1 bidder for ₹25,000 crore contract to build 8 Next Generation Corvettes.
The order is expected to add five warships to GRSE’s construction pipeline.
GRSE’s stock gained over 10% following the announcement.
The value of this single bid exceeds the company’s current orderbook of ₹23,877 crore.
Commercial Bid Win Doubles GRSE’s Order Pipeline
The Commercial Negotiation Committee (CNC), under the Ministry of Defence, opened bids on May 21 for the Navy’s ambitious Corvette program. GRSE, which had previously expressed keen interest in the tender, emerged as the lowest bidder and is now positioned to be awarded the construction of five of the eight vessels under the contract. With a total value exceeding ₹25,000 crore, this deal will effectively double GRSE’s active orderbook, reaffirming its status as a top-tier domestic naval shipyard.
According to the company’s exchange filing, the official signing of the contract is expected to take about six months, after which the first phases of design finalization and procurement will commence. Revenue recognition from the Corvette program is projected to begin in 2027, aligning with the Indian Navy’s long-term maritime capabilities development roadmap.
Highlights:
GRSE likely to build 5 out of 8 NGCs for the Navy.
Order execution will begin post-contract signing in 6 months.
Revenue inflows from this project expected to start in FY 2027.
GRSE’s Corvette-building expertise gives it a competitive edge.
Strategic Importance of the Corvette Program
The Next Generation Corvettes are considered a high-value strategic asset by the Indian Navy, intended to replace older warships and enhance maritime presence in sensitive operational zones. GRSE has been at the forefront of Corvette construction for the Navy, with nine active Corvettes—both missile-equipped and anti-submarine warfare (ASW) variants—already built and commissioned by the company.
In recent statements, Commodore PR Hari, Chairman and Managing Director of GRSE, emphasized the shipyard’s specialized capability in Corvette design and production, which is reflected in the company’s track record. GRSE is also betting on future orders, including the Project 17 Bravo (P-17B) guided-missile frigates, where it expects to be a strong contender once tenders are floated by the end of 2025.
Highlights:
GRSE-built 9 operational Corvettes already serve in the Navy.
NGCs expected to enhance ASW and surface strike capabilities.
P-17 Bravo project likely to trigger revenue from 2029 onwards.
GRSE’s long-term strategy involves securing upcoming Navy orders.
Sector-Wide Boost for Indian Shipbuilders
GRSE’s L1 status has also led to a ripple effect across the Indian shipbuilding sector. Shares of peer companies, including Mazagon Dock Shipbuilders Ltd and Cochin Shipyard Ltd, witnessed positive momentum on May 22, driven by renewed investor confidence in defence-related manufacturing and order inflows.
With the Indian government focused on boosting domestic defence production under the “Make in India” initiative, shipbuilders are well-positioned to benefit from upcoming contracts in both surface combatants and support vessels. GRSE’s win underscores the Defence Ministry’s preference for Indian shipyards with proven delivery track records.
Highlights:
Positive sentiment extended to Mazagon Dock and Cochin Shipyard.
Momentum reflects broader optimism in India’s naval defence build-up.
“Make in India” push fuels continued demand for indigenous warship projects.
GRSE’s performance sets a benchmark for competitive domestic bidding.
