Garden Reach Shipbuilders & Engineers Ltd (GRSE) has garnered varied recommendations from financial analysts, including 'Buy', 'Hold', and 'Sell' calls, in the wake of its September quarter results. While Q2 performance was noted as subdued, analysts highlighted improved operating margins and encouraging progress across key projects.
A significant development for GRSE was the securing of a ₹32,000 crore contract in November 2026 for the construction of five Next-Generation Corvettes (NGC). This new contract dramatically boosts GRSE's pro forma order book to an impressive ₹45,600 crore, up from ₹13,596 crore as of June 2026.
Analyst Views on GRSE
Choice Institutional Equities
Choice Institutional Equities issued the highest target price for GRSE at ₹3,500 per share, maintaining a 'Buy' recommendation. The brokerage anticipates an improvement in revenue momentum during H2FY27, driven by the execution and delivery of remaining ASW-SWC vessels, progress on the P-17 Alpha program, and ongoing construction for NGOPV, research vessels, and German MPV projects. Choice emphasized that GRSE's substantial order book provides strong medium-term revenue visibility.
Elara Securities
Elara Securities observed subdued sales growth for Garden Reach, attributing it to slower execution, but noted a positive surprise in margins, likely due to the execution mix. While Elara expects revenue generation from the Next-Generation Corvettes order to commence in late FY29, they foresee growth momentum peaking in FY27. The brokerage revised its rating to 'Reduce' (from 'Sell') with a target of ₹2,230, acknowledging the NGC order but factoring in the bell curve execution cycle.
Antique
Antique reported that GRSE's Q2 performance fell below its expectations, with both revenue and profit after tax (PAT) missing estimates by 14.8% and 16.6%, respectively. However, it highlighted a 139-basis-point year-on-year (YoY) expansion in EBITDA margins, attributed to lower subcontracting and project-related expenses. Antique views the recent signing of the NGC contract, which lifts the order book to an estimated ₹42,000-44,000 crore (approximately 5.5x trailing twelve-month revenues), as a key positive. Despite this, the early-stage nature of the NGC program and slower finalization of other orders are expected to weigh on near-term revenue recognition, leading Antique to cut earnings estimates. They maintained a 'Buy' rating with a revised target price of ₹2,869.
Goldman Sachs
Goldman Sachs set the lowest target price among the analyzed brokerages, pegging GRSE at ₹1,735 per share.
Looking ahead, the execution of significant programs such as P-17 Alpha frigates, Next-Generation Corvettes, NGOPV, and various commercial shipbuilding initiatives is expected to underpin sustained revenue growth for GRSE over FY28-FY29.