Defence Stock: Garden Reach Shipbuilders Share Price Decline on Muted Growth Outlook

Garden Reach Shipbuilders & Engineers Ltd (GRSE) shares saw a decline as the company flagged a stable growth forecast for FY26 and FY27, aligning with FY25 levels.

Muted Growth Expectations Dampen Sentiment 

GRSE signalled that both topline and bottomline growth would remain steady for the next 2 years. The company ended the June 2025 quarter with an order book worth ₹21,700 crore, lower than ₹22,680 crore in the year-ago period.

GRSE is actively negotiating a pivotal naval contract, the ₹25,000 crore next-generation corvette project, which is expected to conclude between December 2025 and the end of FY26. Additionally, a new request for proposal (RFP) worth ₹70,000 crore for the Navy’s P-17 Bravo project is anticipated before December 2025. This large-scale order will be split between 2 shipyards.

Capacity Expansion and Infrastructure Development Plans

GRSE has laid out plans to boost its shipbuilding operations significantly. By 2026, the firm intends to expand from 28 concurrent ships to 32. Further strengthening its infrastructure, GRSE aims to acquire an additional dry dock in Kolkata and establish a greenfield shipbuilding facility within West Bengal. It is also considering another shipyard development along India's eastern or western coastline to support long-term growth.

Read More: Government Hikes Maritime Fund to ₹70,000 Crore to Accelerate Shipbuilding!

Key Deliveries in Progress with Multi-Year Completion Schedule

Several defence shipbuilding programmes are underway. GRSE is delivering 2 P-17 Alpha ships, one by April 2026 and the other by August 2026. The last ship in the Survey Vessel Large project will be completed by end-2025. The Anti-Submarine Shallow Water Craft project will see 2 ships delivered by August 2025; 2 more ships in FY26, and the final 4 by end-2026.

The Next-Generation Offshore Patrol Vessel (NGOPV) project remains on track and is scheduled to be completed by FY29, adding to GRSE’s long-term revenue visibility.

GRSE Q1 FY25 Earnings Results

GRSE posted a robust Q1 FY25 performance. Net profit jumped 38% to ₹87 crore, revenue rose 30% to ₹1,010 crore, and EBITDA nearly doubled at ₹56 crore. Margins improved by 297 basis points, reaching 5.58%.

Garden Reach Shipbuilders & Engineers Share Price Performance

On August 20, 2025, Garden Reach Shipbuilders & Engineers share price opened at ₹2,618.00 on NSE, above the previous close of ₹2,602.40. During the day, it surged to ₹2,635.90 and dipped to ₹2,566.60. The stock is trading at ₹2,582.00 as of 10:48 AM. The stock registered a moderate decline of 0.78%.

Over the past week, it has declined by 2.16%, over the past month, it has declined by 1.84%, and over the past 3 months, it has moved up by 7.83%.

Conclusion

While the present growth outlook remains steady, Garden Reach Shipbuilders’ strong order pipeline, capacity expansion and major defence contracts in negotiation signal promising long-term potential for the company’s shipbuilding operations.

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