Garden Reach Shipbuilders & Engineers (GRSE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue from operations was ₹1,67,738.28 lakh, up 35% YoY; PAT was ₹15,378.74 lakh, up 57% YoY.

• Order book stood at INR 20,205.56 crore at September 30, across 10 shipbuilding projects and 43 platforms.

• FY26 revenue growth guidance remains 30%–35%; year-end order book target is above INR 50,000 crore, including the anticipated NGC contract.

• Board declared an FY26 interim dividend of ₹5.75 per ₹10 equity share, totaling ₹65.87 crore.

Financial highlights

• Q2 revenue from operations was ₹1,67,738.28 lakh vs ₹1,15,292.39 lakh YoY; H1 revenue was ₹2,98,725.22 lakh vs ₹2,16,264.44 lakh.

• Q2 PBT was ₹20,936.03 lakh vs ₹13,053.31 lakh YoY; H1 PBT was ₹37,607.76 lakh vs ₹24,597.54 lakh.

• Q2 PAT was ₹15,378.74 lakh vs ₹9,777.39 lakh YoY; H1 PAT was ₹27,396.26 lakh vs ₹18,496.77 lakh.

• Q2 EPS was ₹13.43 vs ₹8.54 YoY; H1 EPS was ₹23.92 vs ₹16.15.

• Higher Q2 margins reflected revenue recognition at a favorable P17A execution phase; management expected a similar trend in the following quarter.

Outlook and guidance

• Management expects FY26 revenue growth to remain within the stated 30%–35% range; H1 revenue growth was cited at 38% YoY.

• Order book is targeted to exceed INR 50,000 crore by FY26 year-end, including the anticipated NGC contract.

• NGC contract negotiations were in final stages, with signing expected within FY26.

• Revenue is expected to rise through FY26–FY27, potentially plateau for about three years, then accelerate as NGC contributes.

• Management sees no revenue depletion over the next three to four quarters, citing P17A and anti-submarine shallow water craft execution and smaller project wins.