Kolkata: Garden Reach Shipbuilders & Engineers Limited (GRSE), a premier defence shipbuilding company under the Ministry of Defence, has reported strong financial performance for the first quarter of FY27, supported by robust execution of its shipbuilding and defence projects.
For the quarter ended 30 June 2026, GRSE’s revenue from operations increased 38.54% year-on-year (YoY) to ₹1,814.62 crore, compared with ₹1,309.87 crore in Q1 FY26. The company’s Profit After Tax (PAT) rose 43.82% YoY to ₹172.84 crore, from ₹120.18 crore in the corresponding quarter last year.
The company’s Basic EPS increased to ₹15.09, compared with ₹10.49 in Q1 FY26, reflecting strong growth in profitability.
GRSE Q1 FY27 Financial Performance
GRSE recorded broad-based growth across its key financial indicators during the quarter.
Key financial highlights:
- Revenue from Operations: ₹1,814.62 crore, up 38.54% YoY from ₹1,309.87 crore.
- Total Income: ₹1,914.18 crore, up 38.47% YoY from ₹1,382.42 crore.
- Profit Before Tax: ₹231.53 crore, up 38.87% YoY from ₹166.72 crore.
- Profit After Tax: ₹172.84 crore, up 43.82% YoY from ₹120.18 crore.
- Basic EPS: ₹15.09, up 43.85% from ₹10.49 in Q1 FY26.
- Net Profit Margin: 9.52%, compared with 9.17% in Q1 FY26, an improvement of 35 basis points.
The company’s total income stood at ₹1,914.18 crore in Q1 FY27, compared with ₹1,382.42 crore in Q1 FY26.
Revenue Growth Driven by Strong Defence Project Execution
GRSE’s revenue growth was primarily supported by the improved execution of its shipbuilding and defence projects.
The company is currently executing multiple projects, and the acceleration in project execution and delivery momentum contributed to the strong year-on-year growth in revenue.
Key operational highlights include:
- Revenue from operations grew 38.5% YoY.
- PAT increased 43.8% YoY.
- Basic EPS rose to ₹15.09 from ₹10.49.
- Net profit margin improved to 9.52% from 9.17%.
- Net worth stood at ₹2,799.66 crore, representing a 27.3% YoY increase.
- Debt-equity ratio remained very low at 0.014 times.
- Current ratio improved to 1.32 from 1.18 in Q1 FY26.
The company’s strong order pipeline also provides visibility for revenue growth in the coming quarters.
Profitability and Margins Improve
GRSE’s profitability improved during the quarter, with PAT growing faster than revenue.
The company’s net profit margin increased to 9.52% in Q1 FY27, compared with 9.17% in Q1 FY26, representing an improvement of 35 basis points.
The company’s Profit Before Tax (PBT) rose 38.87% to ₹231.53 crore, compared with ₹166.72 crore in the same quarter of the previous financial year.
The improvement in profitability reflects the company’s strong project execution and operational efficiency despite higher material consumption costs.
Material Costs Rise Amid Higher Project Activity
The cost of materials consumed increased significantly during Q1 FY27, in line with the higher level of revenue and project execution.
Major expense highlights:
- Cost of Materials Consumed: ₹1,244.23 crore, up 83% from ₹679.87 crore in Q1 FY26.
- Sub-contracting Charges: ₹81.52 crore, compared with ₹235.65 crore in Q1 FY26.
- Employee Benefits Expense: ₹101.35 crore, down 4.3% from ₹105.94 crore.
- Depreciation: ₹13.50 crore, up 15.8% from ₹11.65 crore.
The cost of materials consumed increased to ₹1,244.23 crore from ₹679.87 crore a year earlier.
At the same time, employee benefits expenses declined slightly to ₹101.35 crore from ₹105.94 crore.
Depreciation increased to ₹13.50 crore, compared with ₹11.65 crore in Q1 FY26.
Other Income Rises 37.3%
GRSE’s other income also recorded strong growth during the quarter. Other income stood at ₹99.57 crore in Q1 FY27, compared with ₹72.55 crore in Q1 FY26, representing an increase of approximately 37.3%. The increase in other income contributed to the company’s overall growth in total income during the quarter.
GRSE Maintains Strong Balance Sheet Position
The company continued to maintain a strong financial position, supported by low debt levels and improving liquidity indicators.
Key financial ratio highlights for Q1 FY27:
- Debt-Equity Ratio: 0.014x, compared with 0.012x in Q1 FY26.
- Debt Service Coverage Ratio: 36.26, compared with 20.52.
- Interest Service Coverage Ratio: 62.50, compared with 28.39.
- Current Ratio: 1.32, compared with 1.18.
- Net Profit Margin: 9.52%, compared with 9.17%.
- Inventory Turnover Ratio: 2.23, compared with 1.42.
The near-zero debt position and improved coverage ratios underline GRSE’s financial strength and capacity to support its ongoing project execution.
Strong Order Pipeline Supports Future Growth
GRSE continues to benefit from a healthy order pipeline and strong demand for defence shipbuilding.
The company’s growth outlook is supported by several factors, including:
- Strong execution of existing shipbuilding and defence projects.
- Government focus on defence indigenisation.
- Continued push under the Make in India initiative.
- Rising demand for naval vessels and defence equipment.
- Modernisation programmes of the Indian Navy and Indian Coast Guard.
- A healthy order pipeline providing revenue visibility for future quarters.
The combination of strong project execution and a robust order pipeline is expected to support GRSE’s financial performance going forward.
Board Approves Unaudited Q1 FY27 Financial Results
The Board of Directors approved GRSE’s unaudited financial results for the quarter ended 30 June 2026 at its meeting held on 29 July 2026 in Kolkata.
The results were reviewed by the company’s statutory auditors, Guha Nandi & Co., who issued a limited review report in accordance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial results were directly placed before the Board due to the non-availability of the Audit Committee.
GRSE Outlook
GRSE is positioned to benefit from India’s increasing focus on defence indigenisation and domestic manufacturing. The government’s emphasis on strengthening India’s defence capabilities, coupled with modernisation programmes of the Indian Navy and Coast Guard, is expected to support demand for naval vessels and defence equipment.
With strong Q1 FY27 financial growth, improved profitability, a healthy order pipeline and a low debt-equity ratio, GRSE remains focused on executing its projects and supporting India’s growing defence shipbuilding requirements.
About Garden Reach Shipbuilders & Engineers (GRSE)
Garden Reach Shipbuilders & Engineers Limited (GRSE) is a premier defence shipbuilding company under the Ministry of Defence, Government of India. Headquartered in Kolkata, GRSE designs and builds a wide range of warships and vessels for the Indian Navy and Indian Coast Guard. The company plays an important role in India’s defence indigenisation programme and supports the country’s Make in India initiative through indigenous shipbuilding and advanced defence manufacturing capabilities.
