Garden Reach Shipbuilders & Engineers Ltd. (GRSE) shares surged over 10% today after the company announced it has emerged as the lowest bidder (L1) for a massive ₹25,000 crore contract from the Indian Navy. The order involves the construction of eight Next Generation Corvettes (NGCs), with GRSE set to build five of them.

The strategic win significantly strengthens GRSE’s order book and enhances revenue visibility for the coming years — pushing the stock to an intraday high of ₹2,797 on the BSE.

Key Details of the Navy Order

• GRSE is set to construct five out of the eight NGC-class warships.
• The order is part of Project 17B under the Indian Navy’s modernization program.
• This ₹25,000 crore project is one of the largest defence shipbuilding orders in India’s history.
• The NGCs will feature advanced stealth capabilities, high-endurance platforms, and multi-role offensive and defensive systems.

Following the announcement, GRSE stock gained over 10% in a single trading session. The surge reflects investor confidence in the company’s future earnings potential and its growing dominance in India’s defense manufacturing ecosystem.

Latest Financial Results (FY25)

GRSE reported its highest-ever revenue and profits for FY25, backed by strong project execution and cost management. Here’s a quick snapshot:

Full Year FY25 vs FY24:

• Total Income: ₹5,411 crore (↑39% YoY)
• Revenue from Operations: ₹5,076 crore (↑41% YoY)
• EBITDA: ₹756 crore (↑42% YoY)
• Profit Before Tax (PBT): ₹703 crore (↑46% YoY)
• Profit After Tax (PAT): ₹527 crore (↑48% YoY)
• Earnings Per Share (EPS): ₹46.04 (vs ₹31.19 in FY24)
• Final Dividend: ₹4.90/share; Total Dividend: ₹13.85/share for FY25

Q4 FY25 vs Q4 FY24:

• Revenue from Operations: ₹1,642 crore (↑62%)
• EBITDA: ₹335 crore (↑101%)
• PBT: ₹324 crore (↑112%)
• PAT: ₹244 crore (↑118%)
• Q4 EPS: ₹21.32

Also Read: Earnings Explosion: This Electronics Stock Just Reported 322% Profit Growth in Q4

Company Overview: GRSE at a Glance

Garden Reach Shipbuilders & Engineers Ltd. is a defence public sector company undertaking under the Ministry of Defence. Headquartered in Kolkata, GRSE has built more than 800 platforms, including 111 warships — the highest by any Indian shipyard.

Its portfolio includes frigates, corvettes, landing ships, offshore patrol vessels, and fast attack crafts. GRSE is also involved in engine production, portable steel bridges, and marine engineering equipment.

Milestones:

• First Indian shipyard to build a warship for the Indian Navy (INS Ajay in 1961)
• Built India’s first export warship (CGS Barracuda for Mauritius)
• Capable of constructing 24 ships simultaneously
• Miniratna Category I status
• Recent accolades: Raksha Mantri Award for ASW ship design

This mega-contract aligns with India’s “Aatmanirbhar Bharat” vision, emphasizing self-reliance in defence manufacturing. The deal not only boosts GRSE’s financials but also reinforces its role as a strategic partner in national security.

With a robust order pipeline, outstanding financial performance, and a ₹25,000 crore defence contract in hand, GRSE is poised for a strong run ahead. The 10% stock jump may just be the beginning of a sustained upward trajectory, fueled by policy tailwinds and execution excellence.