Mumbai: State-run defence shipyard Garden Reach Shipbuilders & Engineers Ltd (GRSE) has posted remarkable financial results for the third quarter of FY26, with net profit soaring 73.9% year-on-year to ₹170.77 crore. The surge was driven by strong execution of its robust order book and operational efficiency.
Revenue from operations for the quarter jumped 49.1% to ₹1,895.69 crore, compared to ₹1,271 crore in Q3 FY25. For the nine months ended December 31, 2025, GRSE reported a net profit of ₹444.74 crore on revenue of ₹4,882.95 crore, reflecting consistent growth and improved margins.
Interim Dividend Declared
The GRSE board has declared a second interim dividend of ₹7.15 per equity share (face value ₹10), amounting to a total payout of ₹81.90 crore. The record date for determining eligible shareholders is February 3, 2026.
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Key Financial Highlights
- Earnings Per Share (EPS): ₹38.82 for nine months FY26, up from ₹24.72 in FY25
- Net Profit Margin: Improved to 9.11% from 8.25% YoY
- Debt-Equity Ratio: Maintained at a healthy 0.014
- Revenue Growth: Q3 FY26 revenue of ₹1,895.69 crore, up 49.1% YoY
- Order Book: Remains strong with multiple ongoing naval projects
The company’s total income for the nine months ended December 31, 2025, stood at ₹5,086.18 million, with profit before tax of ₹593.84 million. Operational efficiency and disciplined expense management have contributed significantly to improved margins despite scaling up production.
Operational Efficiency and Cost Management
GRSE demonstrated strong cost control across expenses, with total Q3 FY26 expenses at ₹1,73,992.27 lakh, up from ₹1,20,908.86 lakh in the previous year due to increased material and subcontracting costs aligned with higher revenue recognition.
Employee benefits expense rose to ₹10,139.70 lakh from ₹9,077.46 lakh, while finance costs remained controlled at ₹379.12 lakh. The company continues to prioritize operational efficiency while meeting the growing demands of its order book.
Corporate Governance and Compliance
The unaudited Q3 FY26 results were approved by the Board of Directors on January 28, 2026. The financial statements comply with Indian Accounting Standard (Ind AS) 34 on Interim Financial Reporting and were reviewed by statutory auditors Guha Nandi & Co., Chartered Accountants.
The company continues to operate without any subsidiary, associate, or joint venture, maintaining a focused business model in defence shipbuilding.
About GRSE
Garden Reach Shipbuilders & Engineers Ltd (GRSE), a Miniratna defence PSU under the Ministry of Defence, specializes in designing and building warships and other vessels for the Indian Navy and Coast Guard. Established in 1884, GRSE has a strong track record of delivering high-quality naval ships and maintaining operational excellence.
