Garden Reach Shipbuilders Stock Rallies More Than 16% On Strong Earnings & Revenue Jump

Mumbai: Defence public sector undertaking (PSU) Garden Reach Shipbuilders and Engineers (GRSE) Ltd. delivered a stellar financial performance in the March quarter of FY25. The company’s net profit surged by an impressive 118.9 per cent year-on-year (YoY) to Rs 244.2 crore, compared to Rs 111.6 crore in the same period last year.

Revenue from operations climbed 61.7 per cent YoY to Rs 1,642 crore, against Rs 1,015.7 crore in the previous fiscal’s corresponding quarter. This substantial growth was driven by improved execution of orders and higher operational efficiency.

Margins Improve Sharply, Dividend Declared

GRSE’s earnings before interest, tax, depreciation, and amortization (EBITDA) more than doubled, growing 141.8 per cent YoY to Rs 219 crore. The EBITDA margin rose significantly to 13.3 per cent, up from 8.9 per cent in Q4 FY24, indicating healthier profitability.

The company’s profit before tax (PBT) stood at Rs 324 crore, reflecting a 112 per cent YoY increase. Earnings per share (EPS) also jumped to Rs 21.32 from Rs 9.74 in the same quarter last year.

Backed by strong results, the board recommended a final dividend of Rs 4.90 per equity share for FY25, subject to shareholder approval. The dividend is to be paid within 30 days following the company’s 109th Annual General Meeting.

Management Confident on Future Growth

Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, expressed confidence in the company’s outlook, citing a robust order book, improved production maturity, and visibility in both defence and commercial shipbuilding segments.

“Our strong numbers reflect the team’s dedication and project execution capability. We are confident of even stronger performance in the coming year,” he noted.

Stock Surges on Earnings Optimism

Investor sentiment responded positively to the upbeat results. GRSE shares jumped more than 16 per cent on Wednesday to Rs 2,23.00. Over the past month, the stock has rallied 26 per cent, supported by earnings momentum and future growth visibility.