Defence stock with ₹50,000 Cr order book pipeline and 30% revenue growth guidance for FY26

This PSU Defence stock, engaged in building warships, patrol vessels, and commercial ships for the Indian Navy, Coast Guard, plus ship repairs, marine engines, and steel bridges, is in focus after the company announced a Rs. 50,000 crore order book pipeline and 25-30 percent revenue growth guidance for the financial year 2025-26.

With a market capitalization of Rs. 28,300.07 crore, the shares of Garden Reach Shipbuilders & Engineers Limited were currently trading at Rs. 2,470.50 per equity share, down nearly 3.14 percent from its previous day’s close price of Rs. 2,550.65.

Management Guidance

Garden Reach Shipbuilders & Engineers Limited (GRSE) expects strong growth ahead, with the management confident of maintaining 25-30 percent year-on-year revenue growth in FY26, even after the higher performance in the first half of the year. This outlook reflects the company’s steady execution pace, strong demand pipeline, and increased visibility from ongoing defence shipbuilding programs.

The management also expects a major jump in its order book. GRSE aims to close FY26 with an order book of Rs. 50,000 crore or more, supported mainly by the large NGC contract. With the P-17 Bravo opportunity, the leadership agreed with investor estimates that the overall order pipeline could exceed Rs. 75,000 crore over the next 15-18 months.

Order Book

As of 30 September 2025, Garden Reach Shipbuilders & Engineers Limited (GRSE) reported a strong order book of Rs. 20,205.56 crore, covering 10 shipbuilding projects that together include 43 platforms. This also includes non-ship divisions such as Bridges, Deck Machinery and Diesel Engines. 

The detailed shipbuilding backlog is around Rs. 19,856 crore, led by major projects like P-17A frigates (Rs. 9,500 crore), ASW Shallow Water Craft (8 GRSE ships) (Rs. 3,075 crore), Next-Gen Offshore Patrol Vessel (NGOPV) (Rs. 3,250 crore) and multiple research and support vessels.

Other orders include Survey Vessels, 30mm Naval Guns, Hybrid Ferries for West Bengal, German Multi-Purpose Vessels (Rs. 5,400 crore) and a Trailing Suction Hopper Dredger for Bangladesh. 

Garden Reach Shipbuilders & Engineers Limited highlighted an improving mix, with 83 percent of the order book coming from defence projects and 17 percent from non-defence, reflecting its strong position in India’s naval shipbuilding ecosystem.

Company Overview

Garden Reach Shipbuilders & Engineers Limited was established in 1884 as a small, privately owned workshop on the eastern bank of the Hooghly River in Kolkata. It was later renamed Garden Reach Workshop in 1916 and eventually nationalized by the Government of India in 1960. 

After nationalization, the company evolved into a major defence shipyard, becoming one of the key suppliers of vessels for the Indian Navy and Coast Guard. Its capabilities and performance led to the Government of India awarding it Miniratna status in 2006, giving it greater financial and operational freedom to compete effectively.

Garden Reach Shipbuilders & Engineers Limited is mainly engaged in shipbuilding and ship repair, producing a wide range of vessels such as frigates, corvettes, patrol vessels, fast attack crafts and various specialized ships for coastal and maritime operations. Its expertise covers both advanced warships and smaller craft across diverse categories.

Over the decades, the company has delivered more than 800 platforms, including over 114 warships, serving both Indian defence forces and friendly foreign navies. In addition to shipbuilding, the company manufactures marine engines, deck machinery, steel bridges and marine pumps. Its strong design capabilities and focus on indigenous development make it an important contributor to India’s maritime self-reliance.

Recent quarter results

Coming into financial highlights, Garden Reach Shipbuilders & Engineers Limited’s revenue has increased from Rs. 1,153 crore in Q2 FY25 to Rs. 1,677 crore in Q2 FY26, which has grown by 45.45 percent. The net profit has also grown by 57.14 percent from Rs. 98 crore in Q2 FY25 to Rs. 154 crore in Q2 FY26.

Garden Reach Shipbuilders & Engineers Limited’s revenue and net profit have grown at a CAGR of 28.78 percent and 26.45 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 36.6 percent and 27.6 percent, respectively. Garden Reach Shipbuilders & Engineers Limited has an earnings per share (EPS) of Rs. 53.8, and its debt-to-equity ratio is 0.01x.

Written By – Nikhil Naik

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