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Earnings Call Transcript

Garden Reach Shipbuilders & Engineers Earnings Call Transcript: Key Takeaways

GRSE reports strong Q1FY27 growth and Navratna status, driven by high execution rates. While order book fell below ₹15,000 Cr, management remains optimistic about massive upcoming RFPs exceeding ₹1.5 Lakh Cr.

Guidance and delivery
Management target Revenue FY28
Highlights
Revenue growth39% YoY revenue growth driven by strong ship delivery execution.
MarginsHealthy; PAT margins improved with 44% YoY profit growth.
Order book₹13,596 Cr; dropped recently due to exceptionally high execution rates.
Demand visibilityStrong; ₹1.5 Lakh Cr in defense RFPs expected soon.
Management confidenceExtremely confident, highlighting Navratna status and aggressive expansion plans.

Growth

Revenue grew 39% and PAT 44% YoY, reflecting high execution and delivery efficiency.

Outlook

Order book stands at ₹13,596 Cr; execution focus remains on P17 Alpha and ASWSWC.

Risks

Contract delays in Next Generation Corvette (NGC) and heavy reliance on government defense procurement timelines.

Last quarter's promises, checked

Delivered

  • Launch of first NGOPV planned May 20th → Launched first NGOPV (= BEAT)
  • Revenue growth of 38% for FY26 → Delivered 39% growth in Q1FY27 (= BEAT)
  • Increase capacity to 32 ships by end of calendar year → On track with expansion (= BEAT)

Partly delivered

  • Order book drop below 20k Cr seen as positive execution → Fell to 13,596 Cr (= PARTIAL)

Missed

  • NGC contract signature expected in June (Q1) → Contract still pending (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: GRSE. Summary written with AI assistance from the document.

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Garden Reach Shipbuilders & Engineers Ltd: key numbers

Share price
₹2,319.00
Market cap
₹26,565 Cr
Revenue (annual)
₹7,002 Cr
Net profit (annual)
₹747.9 Cr
P/E (TTM)
33.2×Sector 53.6×
Promoter holding
74.50%+0.00% QoQ
FII holding
3.21%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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concurrent construction capacity
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