Garden Reach Shipbuilders & Engineers Limited (GRSE) reported encouraging results for Q2 FY26 and H1 FY26, sustaining growth momentum with a strong set of numbers. * Financial Performance (Q2 FY26): Revenue from operations increased by 45% year-on-year to ₹1,677 crore from ₹1,153 crore. Total income rose by 42%, and Profit After Tax (PAT) grew by 57% to ₹154 crore from ₹98 crore. * Order Book: As of 30th September 2025, the order book stood at ₹20,205.56 crore, comprising 10 shipbuilding projects (43 platforms) and other projects. This includes: * 13 warships for the Indian Navy (two P-17 Alpha Advanced Frigates, one Survey Vessel (Large), six Anti-Submarine Shallow Water Crafts, and four Next-Generation Offshore Patrol Vessels). * Two export projects: 12 Multi-Purpose Vessels for German clients and a Trailing Suction Hopper Dredger for Bangladesh. * 13 hybrid ferries for the Government of West Bengal. * Three Specialized Research Vessels (Ocean Research Vessel, two Coastal Research Vessels, one Acoustic Research Ship). * Naval Surface Guns order for the Indian Navy, two Ship Repair projects, and orders for Portable Steel Bridges, Deck Machinery, and Diesel Engine Plant. * Project Progress: * P-17 Alpha project: First ship delivered ahead of schedule; second ship ready for Contractor Sea Trials by end of November 2025, also expected ahead of schedule; third ship 60% complete, due mid-2026. * Survey Vessel (Large): Three ships delivered; fourth ship 85% complete, Contractor Sea Trials finished, delivery planned for February 2026. * Anti-Submarine Shallow Water Craft: Two vessels delivered and commissioned; third ship ready for delivery early December 2025; fourth and fifth ships 80% and 72% complete respectively, targeting delivery in H1 2026; balance three ships (6th, 7th, 8th) 65-70% complete, project completion by end of 2026. * Next-Generation Offshore Patrol Vessel: First two ships 60%+ complete, launching early 2026; next two ships 52% complete, launching latter half of 2026; delivery scheduled by 2028. * Hybrid Vessels (West Bengal): Project on track, delivery to commence early 2026, completion by 2027. * Multi-Purpose Vessels (German client): First vessel completed, delivery expected by 2029. * Research Vessels: Delivery planned between 2027 and 2028. * Future Outlook & Orders: * RFPs issued for 18 SPV projects for Coast Guard, 5 Next-Generation Survey Vessels for Navy, and 2 Multi-Purpose Vessels for Navy, totaling approximately ₹8,700 crore. GRSE submitted bids for two projects, the third bid due by end of November 2025. * Seven more projects (P-17 Bravo - 7 ships, Mine Counter Measure Vessels - 12 ships, Fast Interceptor Craft - 120 vessels, 18 FIBs, 31 Next-Generation Waterjet FACs, 4 LPDs, and 5 NOPVs) received Approval of Necessity (AoN) from Defence Acquisition Council, with a total value of approximately ₹1,52,000 crore. * GRSE is L1 for the high-value Next-Generation Corvette project (approx. ₹30,000 crore for each ship), with contract signing expected in the next 3-4 months (within current financial year). * Targeting an order book of over ₹50,000 crore by the end of FY26, which would be nearly double the company's highest historical order book. * Capacity Expansion: Shipbuilding capacity increased from 24 to 28 ships (concurrent construction) in FY25, aiming for 32 ships by 2026. Plans include brownfield expansion in West Bengal (three areas identified and development started) and a greenfield shipyard on the West Coast (DPR in progress) to reach 40 ships capacity in approximately 4 years. * Management Commentary: The Chairman & Managing Director, Cmde P.R. Hari, stated that the company expects to maintain a 25-30% year-on-year revenue growth. He assured investors that margins for the Next-Generation Corvette project would be well beyond the conventional shipbuilding PAT margin of 7.5%. He also clarified that there is no expected revenue depletion in the coming 3-4 quarters due to current project execution and acquisition of smaller projects. * Naval Gun Systems: GRSE has successfully completed acceptance trials for its Naval Surface Gun and expects more orders from the Navy and Coast Guard for 30mm guns. RFPs for 7 more guns are in final negotiation, and inquiries for nearly 50 guns are at a nascent stage. * Corporate Actions: The company is awaiting directives from DIPAM regarding corporate actions like stock splits or bonuses.
