Garden Reach Shipbuilders & Engineers (GRSE) on April 28, 2026, reported Q4 FY26 net profit of ₹303.1 crore, up 24% year-on-year from ₹244.2 crore, as revenue from operations jumped 29% to ₹2,119.2 crore. The results, declared by the board at a meeting that ran from 3:00 PM to 5:00 PM, triggered a 16% surge in the stock on NSE on April 29, with GRSE shares touching ₹3,275 intraday, the biggest single-session gain in the defence PSU’s recent history.
Full-Year Numbers: Every Metric at a Record
FY26 was GRSE’s strongest year on record across every headline metric. Full-year revenue reached ₹7,002 crore, up 38% from ₹5,075 crore in FY25, beating the company’s own provisional estimate of ₹6,400 crore. Full-year net profit rose 42% to ₹747.9 crore from ₹527.4 crore in FY25.
EBITDA margin for Q4 FY26 expanded to 16.77% from 13.46% in Q4 FY25, a 331 basis point improvement, as execution efficiency improved and higher-margin programmes contributed a larger share of revenue. EBITDA itself grew 61.4% to ₹355 crore in Q4 FY26, outpacing revenue growth by a significant margin. ICICI Securities noted that FY26 revenue exceeded provisional trends, supported by healthy execution across core shipbuilding programmes.
What Drove the Numbers: 8 Ships in 12 Months
The financial performance was anchored in physical delivery. GRSE delivered 8 warships to the Indian Navy in FY26, one ship every 45 days, including 2 P-17A frigates, 2 Survey Vessel Large (SVL) ships, and 4 Anti-Submarine Warfare Shallow Water Craft (ASW-SWC). In a single day during the year, the company delivered 3 warships simultaneously, a logistical feat that GRSE CMD Cmde PR Hari (Retd) described as “a credible achievement by any standards” in the company’s results statement.
GRSE also commissioned 5 vessels and progressed 12 export vessels during FY26, cementing its position as the only Indian shipyard to have exported warships.
Order Book and the ₹33,000 Crore Corvette Contract
The current order book stands at approximately ₹17,000 crore, equivalent to 2.4x FY26 revenue, according to ICICI Securities. The P-17A frigate programme and ASW-SWC contracts together account for roughly 70% of the backlog and provide near-term revenue visibility through FY27.
The bigger number is what is not yet in the order book. GRSE is the L1 (lowest) bidder for the Next Generation Corvette (NGC) contract, five ships valued at approximately ₹33,000 crore. Price negotiations are complete, and the contract is close to finalisation, according to Ashika Research. If signed, the order book would jump to approximately ₹50,000 crore. Revenue contribution from the NGC contract, however, would begin only from Q4 FY28.
Beyond NGC, the government’s approved defence pipeline relevant to GRSE includes P-17 Bravo frigates (approximately ₹70,000 crore), Landing Platform Docks (approximately ₹35,000 crore), and Mine Counter Measure Vessels (approximately ₹32,000 crore), a combined addressable opportunity of approximately ₹1.55 lakh crore, of which GRSE is targeting at least 20%.
Dividend: ₹19.60 Per Share Total for FY26
The board recommended a final dividend of ₹6.70 per equity share for FY26, subject to shareholder approval at the AGM. Combined with two interim dividends already paid during the year, the total dividend per share for FY26 stands at ₹19.60, up from ₹13.60 in FY25. The interim dividend declared during FY26 represented a payout of 129%, compared to 89.5% in the prior year.
Analyst Ratings: Split on Valuation
Three brokerages hold divergent views. Ashika Research initiated coverage this month with a Buy rating and target price of ₹2,730. Antique Stock Broking carries a Buy with a target of ₹3,026. Elara Capital is the outlier with a reduced rating and a target of ₹2,300, roughly 30% below Wednesday’s intraday high of ₹3,275. The stock was trading at approximately ₹2,928 on April 28 before results, giving it a market cap of ₹33,500 crore. It is still 17% below its 52-week high of ₹3,535.
ICICI Securities flagged the key risk clearly: sustaining growth beyond FY27 depends on timely inflow of new orders, particularly on NGC, patrol vessels, and survey ships. GRSE is expanding its Kolkata yard capacity from 20 ships simultaneously to 35 by Q3 FY27, but capacity alone is not revenue; contracts must be signed and executed.
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Frequently Asked Questions
1. What was GRSE’s Q4 FY26 net profit?
₹303.1 crore, up 24% from ₹244.2 crore in Q4 FY25. Revenue was ₹2,119.2 crore, up 29% year-on-year.
2. Why did GRSE stock surge 16% on April 29?
GRSE’s Q4 and full-year results beat analyst expectations. Full-year revenue of ₹7,002 crore exceeded the company’s own provisional figure of ₹6,400 crore, and EBITDA margin expanded 331 basis points to 16.77%. The results were declared after market close on April 28, triggering the gap-up on April 29.
3. What is GRSE’s dividend for FY26?
Total dividend per share for FY26 is ₹19.60, including two interim payouts during the year and a final dividend of ₹6.70 per share recommended by the board on April 28, pending AGM approval.
4. What is the ₹33,000 crore NGC contract, and when will GRSE get it?
The Next Generation Corvette contract covers five ships valued at approximately ₹33,000 crore. GRSE is the L1 (lowest) bidder, and price negotiations are complete. The contract is near finalisation but not yet signed. If signed, the order book could rise to ₹50,000 crore, though revenue will only start in Q4 FY28.
5. Should I buy GRSE stock at current levels?
Analyst views are split. Antique Stock Broking has a Buy with a ₹3,026 target; Ashika Research has a Buy at ₹2,730. Elara Capital has a Reduce rating with a ₹2,300 target. The stock hit ₹3,275 intraday on April 29. This is not investment advice; consult a registered financial advisor before making any decision.
