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Garden Reach Shipbuilders & Engineers Ltd

| Audited Financial Results for the Quarter and Year Ended March 31, 2026

Report Source

⬤28th Apr 26

Summary : GRSE achieved record revenue and profit in FY26, delivered 8 warships, and declared a higher dividend, signaling strong growth.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses FY26: Rs 6271.84 Cr.
  2. Cost of materials consumed FY26: Rs 3421.71 Cr.
  3. Sub-contracting charges FY26: Rs 1182.52 Cr.
  4. Employee benefits expense FY26: Rs 412.85 Cr.
  5. Revenue from operations FY26: Rs 7002.16 Cr (37.95% YoY growth).
  6. Revenue from operations Q4FY26: Rs 2119.21 Cr (29.06% YoY growth).
  7. Cash flow from operating activities FY26: (Rs 28,972.14 Lakh).
  8. Cash flow from investing activities FY26: Rs 52,656.58 Lakh.
  9. Cash flow from financing activities FY26: (Rs 22,346.13 Lakh).
  10. Net increase in cash and cash equivalents FY26: Rs 1,338.31 Lakh.
  11. Total Assets FY26: Rs 10,63,610.03 Lakh (FY25: Rs 10,35,423.19 Lakh).
  12. Other Equity FY26: Rs 2,51,156.52 Lakh (FY25: Rs 1,96,471.04 Lakh).
  13. Trade Receivables FY26: Rs 1,22,086.90 Lakh (FY25: Rs 25,945.77 Lakh).
  14. Cash and cash equivalents FY26: Rs 1,726.58 Lakh (FY25: Rs 388.27 Lakh).
  15. Net Profit Margin FY26: 10.68% (FY25: 10.39%).
  16. Standalone financial results.

Corporate Overview

  1. India (Indian Navy, Coast Guard)
  2. Mauritius
  3. Seychelles
  4. Guyana
  5. Government of India Undertaking, Ministry of Defence.
  6. Defence Public Sector Undertaking under Ministry of Defence.
  7. Shipbuilding and ship repair for Indian Navy, Coast Guard, and foreign countries.
  8. Diversified into engineering: pre-fabricated steel bridges, deck machinery, marine diesel engines, naval guns.
  9. Positive, highlighting robust physical performance and landmark year.
  10. Confident about maintaining tempo and future growth.
  11. Focus on capability enhancement, technology adoption, business diversification.
  12. Indian Navy
  13. Indian Coast Guard
  14. Friendly foreign countries
  15. Shipbuilding
  16. Ship repair
  17. Engineering products
  18. Can undertake concurrent construction of 28 ships.
  19. Four distinct shipyards.
  20. Delivered 8 warships in FY26 (one every 1.5 months).
  21. Capability enhancement.
  22. New technology adoption.
  23. Calibrated business diversification.

Risk Factors

  1. Economic environment changes, domestic and overseas.
  2. Potential impact from tax laws, inflation.
  3. Litigation risks could affect operations.
  4. Audit Committee non-availability for results approval.

Key Drivers

  1. Record revenue and profit in FY26.
  2. Delivered eight warships in financial year.
  3. Increased final dividend to ₹6.70 per share.
  4. Plans for capability enhancement and diversification.

Auditor’s Report

  1. Unmodified Opinion
  2. Note 2: Changes in estimation of cost to complete and sale consideration for projects P17A, ASWSWC & NGOPV, impacting financial results. Opinion not modified.

Board Commentary

  1. Recommended final dividend of ₹6.70 per equity share for FY2025-26.
  2. In addition to two interim dividends of ₹12.90 per equity share.
  3. Advancement in construction stage of ongoing projects (P17A, ASWSWC & NGOPV).
  4. Cost to completion increased by Rs. 45,693 Lakh for projects.

Corporate Governance

  1. Auditor's report confirms compliance with Code of Ethics.
  2. Auditor's report confirms compliance with ethical independence requirements.
  3. Non-availability of Audit Committee for results approval.

Management Discussion & Analysis

Future Strategy

  1. Maintain current production tempo.
  2. Enhance capabilities and adopt new technologies.
  3. Diversify business operations.

Industry Overview

  1. Positive outlook for defence shipbuilding and engineering.

Operational Focus Areas

  1. Capability enhancement.
  2. New technology adoption.
  3. Business diversification.

Performance Drivers

  1. Highest-ever revenue and profit in FY26.
  2. Delivery of 8 warships in FY26.
  3. Strong order book and project execution.

Critical Risks

  1. Changes in economic environment (India and overseas).
  2. Fluctuations in tax laws and inflation.
  3. Potential litigation risks.