Shipbuilders GRSE, Cochin Shipyard Lead Defence Stocks on Strong Momentum
Defence sector stocks saw significant gains on May 14, led by a surge in shipbuilding companies such as Garden Reach Shipbuilders and Engineers (GRSE), Cochin Shipyard, and Mazagon Dock. These stocks rose as much as 17 percent, pushing the Nifty India Defence index higher by more than 4 percent in early trade. GRSE, in particular, has posted remarkable growth, with a net profit of ₹527 crore for FY25, marking a 48 percent increase over the previous year. This has translated into a 30 percent gain in GRSE’s stock price in 2025, and an impressive 118 percent rise over the last year.
Highlights:
GRSE posted a 48% increase in net profit for FY25, up to ₹527 crore
Stock gains 30% in 2025, 118% in the last year
Cochin Shipyard, GRSE, and Mazagon Dock saw as much as 17% rise on May 14
Strong Orders Expected to Drive Further Growth in Defence Sector
Analysts attribute the continued surge in defence stocks to expectations of increasing orders for defence equipment. Axis Securities noted that the rise in stock prices reflects growing confidence in India’s military capabilities, especially after the recent conflict with Pakistan. The Defence Acquisition Council (DAC) has approved orders worth ₹8.45 lakh crore, which are expected to significantly boost the order book of domestic defence manufacturers. Antique Stock Broking forecasts that order inflows to listed defence shipyards will triple by FY27, providing a strong growth outlook for companies like Cochin Shipyard, GRSE, and Mazagon Dockyard.
Highlights:
Defence sector benefiting from rising expectations of increased orders
Defence Acquisition Council approval of ₹8.45 lakh crore expected to fuel growth
Shipyards like Cochin, GRSE, and Mazagon Dock likely to see a three-fold increase in orders by FY27
GRSE’s Robust Financials and Positive Outlook for the Future
GRSE’s impressive financial results for FY25 reflect the company’s solid position in India’s growing defence sector. The company reported a strong profit growth of 48 percent, with a net profit of ₹527 crore. For the fourth quarter, GRSE posted a remarkable 118 percent rise in profit, reaching ₹244 crore. This positive performance is supported by a robust order book and growing production maturity of ongoing projects, including high-value orders and government-backed initiatives. The company has set its sights on a 20-25 percent compound annual growth rate (CAGR) over the next five years, with exports expected to quadruple in the coming years.
Highlights:
GRSE reported a 48% increase in net profit for FY25, with ₹244 crore for Q4
Company aims for a 20-25% CAGR over the next five years
Exports expected to quadruple in the next four years
Cochin Shipyard’s Strategic Partnership Fuels Continued Growth
Cochin Shipyard is benefiting from strategic partnerships aimed at bolstering India’s maritime and offshore fabrication capabilities. On May 14, the shipyard saw a rise of over 13 percent in its stock price following an announcement of a partnership with Drydocks World to develop ship repair clusters. This collaboration aims to create a world-class ship repair ecosystem in India, boosting both domestic and international fleets. Additionally, the partnership will enhance India’s offshore fabrication capabilities and contribute to marine engineering training and skill development.
Highlights:
Cochin Shipyard stock rose 13% on May 14 after partnership with Drydocks World
Partnership aims to boost India’s maritime sector and ship repair capabilities
Collaboration will also support training and skilling in marine engineering
India’s Defence Exports Surge Amid Growing Self-Reliance
India’s defence production and exports have grown rapidly in recent years, driven by the government’s Make in India push. In FY25, India’s defence exports hit an all-time high of ₹23,622 crore, reflecting a 34-fold increase from ₹686 crore in FY14. The country’s defence export portfolio now includes a range of products such as bulletproof jackets, aircraft, helicopters, and lightweight torpedoes. Currently, 65% of India’s defence equipment is produced domestically, underscoring the growing self-reliance in the sector. The Ministry of Defence has also approved 193 contracts worth over ₹2 lakh crore, with 92% of these contracts awarded to the domestic industry.
Highlights:
India’s defence exports surged to ₹23,622 crore in FY25, marking a 34-fold increase from FY14
65% of India’s defence equipment is now manufactured locally
Government contracts worth ₹2 lakh crore, with 92% allocated to domestic industry
