Garden Reach Shipbuilders & Engineers Ltd (GRSE) has announced a substantial order win from Oil and Natural Gas Corporation (ONGC) valued at Rs 1,032.07 crore. The contract involves the construction of four advanced Platform Supply Vessels, marking a significant boost for the Kolkata-based shipbuilder.
Project Scope and Timeline
The ambitious project is expected to be executed over a period of 48 months. This new order further strengthens GRSE's already impressive financial standing, with its order book having stood at Rs 15,324 crore at the close of the fiscal year 2026.
GRSE clarified that there are no related party interests involved in this transaction, ensuring transparency and adherence to corporate governance standards.
Stock Performance and Financial Overview
Following the announcement, GRSE's stock experienced a slight dip, closing down 1.48% at Rs 2586.15 on Thursday. The company's market capitalization settled at Rs 29,624 crore. Trading activity saw approximately 0.29 lakh shares change hands on the BSE, generating a turnover of Rs 7.57 crore.
In its recent Q1 financial results, GRSE reported strong growth across key metrics:
- Net Profit: Increased by 43.8% to Rs 172.8 crore, up from Rs 120.2 crore in the same period last year.
- Revenue from Operations: Climbed 38.5% to Rs 1,814.6 crore, compared to Rs 1,309.9 crore a year earlier.
- EBITDA: Rose 33.3% to Rs 149.2 crore, up from Rs 111.9 crore. However, the EBITDA margin saw a marginal decrease from 8.5% to 8.2%.
- Total Income: Grew to Rs 1,914.2 crore from Rs 1,382.4 crore in the previous year's first quarter.
- Profit Before Tax (PBT): Saw a 38.9% increase, reaching Rs 231.5 crore from Rs 166.7 crore.
- Earnings Per Share (EPS): Improved to Rs 15.09 from Rs 10.49 year-on-year.
GRSE is primarily renowned for its expertise in the construction of warships for the Indian Navy and Coast Guard, making this foray into Platform Supply Vessels for ONGC a notable diversification within its core shipbuilding capabilities.