Garden Reach Shipbuilders & Engineers (GRSE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 marked the 10th consecutive quarter of YoY revenue and PAT growth; revenue from operations was ₹1,27,100.76 lakh and profit for the period was ₹9,818.55 lakh.

• Order book stood at ₹23,877 crore at Dec. 31, covering 40 platforms across 10 projects; management expects execution to run through 2029.

• Management targets 20%–25% CAGR over five years, supported by execution, prospective naval and Coast Guard orders, commercial shipbuilding and ship repair.

Financial highlights

• Q3 FY25 revenue from operations rose from ₹92,309.78 lakh in Q3 FY24; profit for the period increased from ₹8,825.32 lakh.

• Q3 operating profit increased to ₹62 crore from ₹37 crore; operating profit margin improved to 4.85% from 4.03%, and EPS rose to ₹8.57 from ₹7.70.

• 9M FY25 revenue from operations was ₹3,43,365.20 lakh and profit for the period was ₹28,315.45 lakh, versus ₹2,57,691.53 lakh and ₹24,567.20 lakh, respectively.

• Q3 FY25 total income was ₹1,34,312.49 lakh; profit before tax was ₹13,376.12 lakh. 9M total income was ₹3,65,455.14 lakh and profit before tax was ₹37,973.66 lakh.

Outlook and guidance

• Management targets 20%–25% CAGR over five years, rather than sustaining the recent 38% growth pace; the current order book is expected to expire by 2029 absent new awards.

• Management expects FY PAT margin to recover above 8%; Q3 PAT margin was in the 7% range, with profitability dependent on project mix and execution timing.

• First Next Generation Corvette revenue recognition is expected from 2027; P17 Bravo revenue recognition could start in 2029 if awarded.

• Ship repair revenue is targeted to nearly double within a year; exports are expected to double within a year and reach at least 4x the current level within four years.