Garden Reach Shipbuilders & Engineers (GRSE) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue from operations rose 28% YoY to INR 115,292.39 lakh; PAT increased 21% to INR 9,777.39 lakh.

• Order book stood at INR 24,221.37 crore at Sep. 30, 2024, covering 12 projects and 43 platforms, including four export projects with 10 platforms.

• Management expects ~25% revenue CAGR from FY23 to FY27 and broadly stable margins.

Financial highlights

• Q2 total income rose 27% YoY to INR 1,228 crore from INR 969 crore; EBITDA increased 19% to INR 145 crore from INR 120 crore.

• H1 revenue from operations was Rs 216,264.44 lakh vs Rs 165,381.75 lakh; PAT was Rs 18,496.77 lakh vs Rs 15,741.88 lakh.

• H1 EPS was Rs 16.15 vs Rs 13.74; total comprehensive income was Rs 18,524.44 lakh vs Rs 15,769.04 lakh.

Outlook and guidance

• Management reiterated ~25% revenue CAGR through FY27 and confidence in sustaining growth; current shipbuilding margins of 7.5%–8% were considered optimal and expected to hold broadly stable.

• Existing projects are expected to be completed by 2028; P17A completion is targeted for Aug. 2026 and all eight ASW SWC deliveries by Oct. 2026.

• If awarded, Next Generation Corvette revenue recognition would begin roughly two years after contract conclusion; P17 Bravo RFP was expected in calendar 2025, with revenue recognition around 2028–2029 in a best-case timeline.