Garden Reach Shipbuilders & Engineers (GRSE) is emerging as a formidable contender in India’s naval shipbuilding sector—once dominated exclusively by Mazagon Dock Shipbuilders (MDL). With a healthy order book, emerging project pipeline, and strategic expansion, GRSE is steadily reshaping its trajectory.
Robust Order Book & Financial Strength
As of mid-2025, GRSE holds a ₹23,877 crore order book spanning over 40 platforms across 10 major projects. Unlike many PSUs, GRSE is operating debt-free, enabling the company to pursue growth with financial flexibility.
High-Value Contracts on the Horizon
The company is a front-runner for two landmark contracts: ₹36,000 crore Next‑Generation Corvette (NGC) and ₹70,000 crore P‑17 Bravo stealth frigates. Securing either contract could double or even triple its order book within 12–18 months.
Major Projects and Capabilities
GRSE is involved in a diversified mix of naval projects, including:
- INS Himgiri (P‑17 Alpha frigate), delivered ahead of schedule
- INS Arnala, commissioned in 2025 as part of the 16‑ship ASW‑SWC program
- Launching the final ship Ajay in the Anti‑Submarine Warfare Shallow Water Craft series—all eight completed, enhancing coastal defence capabilities
- Committed to export and non-defence growth, GRSE recently secured a World Bank–backed ferry contract and is ramping up its shiprepair division, further diversifying its revenue streams.
Strong Financial Performance
The firm posted ₹5,076 crore in revenue in FY25 (up 41% YoY) and ₹527 crore in profit (up 48% YoY), with operating margins rising to 8% and Q4 revenue jumping 62% YoY. Meanwhile, shares showed strong investor interest amid buoyant earnings trends.
Risks and Market Sentiment
Despite its potential, GRSE faces execution risk managing over 40 varied projects alongside premium stock valuations—trading at ~57x PE and 14–15x PB. Any delays or contract setbacks could impact both margins and investor confidence.
With India’s defence procurement pipeline swelling—including projected orders of ₹16 trillion—GRSE’s combination of robust projects, diversification, and financial strength make it a standout. Analysts expect the Atmanirbhar Bharat push and infrastructure expansion to fuel demand for made-in-India shipbuilding.
