GRSE Q3 Profit Soars 74% to ₹171 Crore on Strong Revenue

Introduction

State-run defence shipyard Garden Reach Shipbuilders & Engineers Ltd (GRSE) announced a robust financial performance for the third quarter of fiscal year 2026. The company reported a significant 73.9% year-on-year increase in its consolidated net profit, which stood at ₹170.7 crore for the quarter ending December 31, 2025. This growth is a substantial rise from the ₹98.2 crore profit recorded in the same period of the previous fiscal year. The strong results were primarily driven by efficient execution of a healthy order book and a surge in operational revenue. Following the announcement, the company's board also declared a second interim dividend for its shareholders.

Detailed Quarterly Financials

GRSE's revenue from operations for Q3 FY26 saw a remarkable 49% jump to ₹1,895 crore, compared to ₹1,271 crore in the corresponding quarter of the previous year. This top-line growth indicates strong progress in its ongoing shipbuilding projects for the Indian Navy and Coast Guard. The company's operational efficiency also saw a marked improvement. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) more than doubled, reaching ₹172.1 crore from ₹75.3 crore in Q3 FY25. Consequently, the EBITDA margin expanded significantly to 9%, a notable increase from 5.9% in the prior year, reflecting better cost management and project execution.

Performance for Nine-Month Period

Looking at the performance for the first nine months of the fiscal year (9M FY26), GRSE has maintained its growth trajectory. The company posted a consolidated net profit of ₹444.74 crore on a total revenue of ₹4,882.95 crore. This performance has translated into higher shareholder value, with the Earnings Per Share (EPS) for the nine-month period rising to ₹38.82, up from ₹24.72 in the same period last year. The company's financial health remains strong, underscored by a healthy debt-to-equity ratio of just 0.014, indicating a very low reliance on debt for its operations.

Dividend Announcement for Shareholders

In a positive development for investors, the Board of Directors of GRSE has declared a second interim dividend for the financial year 2025-26. The dividend is set at ₹7.15 per equity share of face value ₹10 each. This will result in a total dividend payout of approximately ₹81.9 crore. The company has fixed February 3, 2026, as the record date to determine the eligibility of shareholders to receive this dividend. This move reflects the company's strong cash flow position and its commitment to sharing profits with its shareholders.

Factors Driving Growth

The impressive quarterly results are a direct outcome of GRSE's consistent execution of its robust order book, which includes multiple high-value projects for the Indian defence forces. The company specializes in the construction of complex warships, survey vessels, and patrol boats. The government's sustained focus on indigenous defence manufacturing through the 'Make in India' initiative has created a favorable environment for domestic shipyards like GRSE. This policy push ensures a steady pipeline of contracts and supports the long-term growth visibility for the company.

Market Reaction and Stock Performance

The strong financial report was well-received by the market. On January 28, 2026, the day of the announcement, shares of Garden Reach Shipbuilders & Engineers Ltd closed at ₹2,510 on the National Stock Exchange (NSE). This represented a significant gain of ₹122.40, or nearly 5.1%, from its previous close, indicating strong investor confidence in the company's performance and future prospects.

Outlook and Conclusion

Garden Reach Shipbuilders & Engineers Ltd has delivered a strong performance in the third quarter, marked by substantial growth in both revenue and profitability. The expansion in margins highlights improved operational efficiencies, while the declaration of an interim dividend rewards shareholders. With a healthy order book and continued support from the government's indigenization policies, GRSE is well-positioned to capitalize on the growing demand in the defence shipbuilding sector. The company's solid financial foundation and strategic importance to national security provide a positive outlook for sustained growth in the coming quarters.