Garden Reach Shipbuilders & Engineers (GRSE) Q4 24/25 earnings summary

Executive summary

• FY25 was described as the strongest year to date, with revenue from operations of ₹5,075 crore, PAT of ₹527 crore, and the order book broadly maintained despite substantial execution.

• Management sees FY26 as a potential peak execution year, with non-defense and commercial work helping sustain revenue as new large awards take time to enter execution.

Financial highlights

• Q4 revenue from operations rose 62% YoY to ₹1,642 crore; EBITDA increased 101% to ₹335 crore and PAT grew 118% to ₹244 crore.

• FY25 revenue from operations was ₹5,075 crore, up 31% YoY; PAT rose 46% to ₹527 crore from ₹360 crore, and EBITDA was ₹756 crore.

• FY25 total income was ₹5,411 crore versus ₹3,892 crore; PBT was ₹703 crore versus ₹481 crore.

• Board recommended a ₹4.90-per-share final dividend for FY25, subject to shareholder approval, in addition to the ₹8.95 interim dividend paid.

Outlook and guidance

• Management sees FY26 as a potential peak revenue year; revenue could flatten thereafter, while non-defense platforms and commercial ships may bridge the gap before new large awards contribute.

• P17A revenue accrual from the remaining order value was indicated at 40% in FY26 and 60% in FY27; two ships are scheduled for delivery in FY27.

• FY26 planned deliveries include one P17A, two Survey Vessels (Large) and four ASW Shallow Water Craft; FY27 includes two P17A, three ASW Shallow Water Craft, one NGOPV and the acoustic research ship.

• NG Corvette contract conclusion was estimated optimistically by Dec 2025, with a conservative timeline to Mar 2026; a Coastal Research Vessel contract was expected in Jun 2025.

• Shipbuilding capacity is targeted to rise from 24 ships to 28 by end-2025 and 30 within two years; greenfield-facility discussions may gain clarity in 6–9 months.