Garden Reach Shipbuilders & Engineers Limited (GRSE)
Small CapIndustrials stocks · Small cap · NSE
Garden Reach Shipbuilders & Engineers Limited (GRSE) is an Indian shipbuilder primarily serving the Indian Navy and Coast Guard, also engaged in commercial shipbuilding, naval surface guns, and portable steel bridges. The company is expanding its capacity and venturing into new technologies like autonomous vessels.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 67/100Rev +39% YoY · PAT +44% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,815 Cr | +38.5% | -14.3% |
| EBITDA | ₹149 Cr | +33.0% | -58.0% |
| Operating margin | 8.0% | -100 bps | -900 bps |
| PAT | ₹173 Cr | +44.2% | -42.9% |
| PAT margin | 9.5% | +37 bps | -477 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
GRSE reports best-ever financial performance in Q4 and FY26, with FY26 revenue up 38% YoY to INR 7,002 crore and PAT up 42% YoY to INR 748 crore, driven by robust physical execution including 8 warship deliveries.
GRSE's strong FY26 results, improved execution, and a substantial pipeline of defense and commercial orders support the investment thesis. The expected signing of the INR 33,000 crore Next Generation Corvette (NGC) project and ongoing capacity expansion are key positives, though revenue recognition for large projects has a long lead time.
Next Generation Corvette (NGC) Project
GRSE is L1 for the NGC project, valued at INR 33,000 crore, with contract signing expected in Q1 FY27. This is a significant order for future revenue.
Large Defense Order Pipeline
A pipeline of RFPs worth INR 1,50,000 crore (excluding NGC) is expected, including major projects like P-17 Bravo (INR 70,000 crore), Mine Countermeasure Vessels, and Landing Platform Docks.
Commercial Shipbuilding Exports
European ship owners are looking at India due to capacity constraints in China/Korea and competitive Indian pricing/quality. GRSE is in dialogue with clients and expects more contracts.
Autonomous Vessels & New Technology
GRSE has developed subsurface and surface autonomous vessels, supplied a product to DRDO, and is participating in Make-I/Make-II schemes for Extra-Large Autonomous Underwater Vessels.
Shipbuilding Capacity Expansion
Current shipbuilding capacity for 28 platforms will increase to 32 ships by end of current calendar year with ongoing modernization projects. Plans include two Brownfield and two Greenfield facilities.
Government Focus on Warship Building
Government's intent for warship building is evident from accorded AoNs and promulgated RFPs by the Indian Navy and Coast Guard, translating into contracts.
Government Shipbuilding Revitalization Package
The government has promulgated a revitalization package for shipbuilding worth around INR 69,725 crore, expected to gather momentum in commercial shipbuilding.
Aggregated Commercial Vessel Demand
The Ministry of Shipping has aggregated domestic demand for commercial vessels, with four tenders currently live, which GRSE intends to participate in.
Global Demand for Commercial Vessels
European ship owners are increasingly considering India for commercial vessels due to capacity saturation in traditional markets and India's competitive pricing and quality.
Revenue Recognition Lag for Large Projects
Revenue booking for the NGC project is expected to commence in H2 FY28, with major recognition from FY29, indicating a significant lag between order win and financial impact.
Commodity Price Volatility
While existing contracts are fixed-price, new contracts will need to factor in the uncertainty and impact of commodity price increases, which could affect future margins.
Dependency on Defense Orders
A substantial portion of the current order book and future pipeline remains concentrated in defense projects, making the company susceptible to government spending and policy changes.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Shipbuilding is a long-cycle business with projects spanning multiple years. Annual and quarterly results are best compared year-over-year to account for project milestones and seasonal variations in execution.
Order Book
Current order book stands at INR 15,324.13 crore, comprising nine projects and 39 platforms. Management notes this is the first time in five years the order book has dropped below INR 20,000 crore, indicating improved execution.
Order Inflow (on the anvil)
L1 for Next Generation Corvette (NGC) project (INR 33,000 crore), contract expected Q1 FY27. Live tenders: Multipurpose Vessels (INR 1,500 crore), Next Generation Offshore Patrol Vessels (INR 2,000 crore), 22 Interceptor Boats (INR 1,000 crore).
Order Inflow (RFP pipeline)
RFPs expected in next 3 months: 120 Fast Interceptor Craft (INR 3,500 crore), 31 Follow-On Water Jet FAC (INR 3,500 crore), 7 P-17 Bravo ships (INR 70,000 crore). RFPs expected later FY27: 12 Mine Countermeasure Vessels (INR 32,000 crore), 4 Landing Platform Docks (INR 35,000 crore). Total estimated order value on anvil is INR 1,50,000 crore (excluding NGC).
Execution & Deliveries (FY26)
Delivered eight warships to the Indian Navy, including three on the same day. Launched one warship and performed keel laying for 19 platforms (13 hybrid ferries, 6 others). Delivered seven naval surface guns and 110 portable steel bridges (30 for export).
Improved Execution Rate
The order book dropping below INR 20,000 crore for the first time in five years is seen by management as an indication of an improved execution rate.
Margin Sustainability
Management expects to maintain similar EBITDA margins in the current financial year (FY27) as seen in FY26.
Strategic Commercial Shipbuilding
GRSE will pursue commercial shipbuilding projects with higher margins and more attractive order values, especially those involving complex or hybrid platforms.
Future Revenue Outlook
Management expects healthy revenue accrual in FY27 from mature projects and anticipates new orders to stem the current order book deficit, ensuring revenue for FY28 and beyond.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| NGC Contract Signing | Price negotiations completed, contract expected Q1 FY27. | Formal signing of the INR 33,000 crore contract and commencement of revenue recognition from H2 FY28. |
| Conversion of RFP Pipeline to Orders | INR 1,50,000 crore worth of RFPs expected in FY27/FY28. | Successful conversion of key RFPs, especially P-17 Bravo (INR 70,000 crore) and LPDs, into firm orders. |
| Commercial Export Order Wins | Dialogue with European clients for commercial vessels. | Conclusion of new commercial shipbuilding export contracts with reasonably good margins. |
| EBITDA Margin Trend | FY26 EBITDA margin 11.6%. Management expects similar margins in FY27. | Maintenance of margins in FY27 and beyond, especially as new projects with varying profitability profiles commence. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralMACD −
Technical chart
GRSEdaily · 1Y · AUTO+5.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 42.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 42 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 24% off 52W high · 29% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 2.1% of the 30-week proxy.
- The 30-week proxy changed +0.8% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Quality contributes 20/20 to the score.
- Growth contributes 20/25 to the score.
- Balance sheet contributes 11/15 to the score.
Main drags
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Cash flow is weaker at 5/10; verify the latest quarterly trend.
- Balance sheet is weaker at 11/15; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 98th percentile of the scored universe and 98th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 74.5%. Key concern: Operating cash flow is negative at ₹-290 Cr.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · Industrials: 98th pctile, median 68 · Small: 98th pctile, median 66
39 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.5%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.8%.
- ▸7 years of positive FCF.
Trust risks
- ▸Operating cash flow is negative at ₹-290 Cr.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 36.20
- P/B
- 11.06
- EV/EBITDA
- 32.87
- Market Cap
- 29018.00Cr
Profitability
- ROE
- 31.80%
- ROCE
- 43.00%
- ROA
- 7.53%
- Dividend Y
- 0.51%
Growth (CAGR)
- Revenue 5Y
- 44.00%
- EPS 5Y
- 36.00%
- Revenue 3Y
- 40.00%
- EPS 3Y
- 50.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 59.50×
- Altman Z
- 3.56
- Book Value
- 229.00
Cash Flow
- FCF Yield
- 0.82%
- FCF Positive Y
- 7/5
- OCF
- -290.00 Cr
- EPS TTM
- 69.90
Shareholding
- Promoter Hold
- 74.50%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 41%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
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