Garden Reach Shipbuilders & Engineers ↗

GRSE is a central public sector enterprise (CPSE), with majority ownership (74.5% holding as on March 31, 2026) of GoIunder administrative control of the Ministry of Defence (MoD). GRSE is strategically important to the MoD for strengthening its defence capabilities. GRSE’s board of directors are appointed by MoD and comprise central government representative as a nominee director. GRSE has been nominated for building stealth frigates P-17 Alpha (a type of warship), which account ~38% of the ord

GRSE has built ~800 platforms, which include 118 warships for Indian Navy, Indian Coast Guard, Government of Mauritius, and Government of Seychelles. GRSE has delivered warships comprising frigates, anti-submarine warfare corvettes, missile corvettes, fleet tanker, landing ship tank (large), landing craft utility, offshore patrol vessel, fast patrol vessels, inshore patrolvessel, and water jet fast attack crafts, among others. GRSE has a proven track record of over seven decades. Apart from ship

As on March 31, 2026, the company had order book of ₹15,324 crore, which translates to over 2.2x of the FY26 revenue, providing revenue visibility in the medium term. The largest order is for frigates P-17A, which accounts for ~38% of the order book and was awarded to GRSE on a nomination basis. In addition to its existing order book, GRSE emerged as the lowest bidder (L1) for building five (05) Next Generation Corvettes with an estimated project value of ~₹33,000 crore, which is expected to fur

With increased pace of execution, revenue grew by 38%, from ₹5,076 crore in FY25 to ₹7,002 crore in FY26, mainly led by execution of frigates P-17A. In FY26, the shipbuilding segment accounted for 93% of the revenue, followed by ship repair at 4%, and engineering division at 3%. The PBILDT margin improved from 8.41% in FY25 to 11.45% in FY26, driven by higher scale, which supported better fixed cost absorption, along with the reversal of excess cost provisions created in earlier years for ongoin

GRSE has a favourable capital structure with no term debt or working capital borrowings in its books except lease liabilities of ₹37.4 crore as on March 31, 2026. It receives stage payment from its customers, which meets working capital requirements and is used to extend advances to suppliers, and procure materials and equipment, among other expenses. A large part of these stage payments is backed by bank guarantees (BGs; ₹5,131 crore as on March 31, 2026), which has been considered as a working

The shipbuilding industry is expected to witness sustained growth, driven by a healthy order pipeline from the defence sector, increased focus on maritime security, and the GoI’s thrust on indigenisation under the ‘Aatmanirbhar Bharat’ initiative. Demand prospects remain favourable, led by the Indian Navy and Coast Guard’s ongoing fleet modernisation programmes, and rising requirements for commercial vessels. The industry is further aided by policy measures , such as the revamped Shipbuilding Fi

Work contracts are mostly fixed price , resulting in profitability susceptible to unprecedented input price increase. While the company builds in sufficient contingencies to mitigate the impact of input price rise, there exists risk associated with vola tility in profit margins.