Garden Reach Shipbuilders and Engineers Limited (NSE:GRSE), a Government of India undertaking under the Ministry of Defence, reported unaudited financial results for the quarter ended 30 June 2026 on 29 July 2026. The company posted a net profit of Rs 17,283.76 lakh on total income of Rs 1,91,418.14 lakh for the first quarter of financial year 2026-27, with earnings per share at Rs 15.09.
Key Highlights
- Unaudited net profit for Q1 FY27 stood at Rs 17,283.76 lakh, compared to Rs 12,017.52 lakh in the corresponding quarter of the previous year, representing a year-on-year increase of approximately 43.8%.
- Total income for the quarter ended 30 June 2026 was Rs 1,91,418.14 lakh, comprising revenue from operations of Rs 1,81,461.59 lakh and other income of Rs 9,956.55 lakh.
- Revenue from operations in Q1 FY27 was Rs 1,81,461.59 lakh against Rs 1,30,986.94 lakh in Q1 FY26, marking a year-on-year growth of 38.5%.
- Profit before tax for the quarter stood at Rs 23,152.61 lakh, up from Rs 16,671.73 lakh in the prior-year quarter, an increase of 38.9%.
- The Board of Directors approved the unaudited financial results at a meeting held on 29 July 2026, which commenced at 11:45 hours and concluded at 13:30 hours.
- Earnings per share for Q1 FY27 was Rs 15.09 on a paid-up equity share capital of Rs 11,455.20 lakh with a face value of Rs 10 per share.
- The statutory auditors conducted a limited review of the unaudited quarterly financial results in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and issued an unqualified review report.
About the Company
Garden Reach Shipbuilders and Engineers Limited (NSE:GRSE, BSE:542011) is a Government of India undertaking established in 1934 and headquartered in Kolkata, West Bengal. Operating under the Ministry of Defence, GRSE specializes in the design and construction of ships and vessels for the Indian Navy and Coast Guard, as well as commercial shipbuilding and ship repair services. The company is engaged in defence production and is exempt from segment reporting requirements under Ministry of Corporate Affairs regulations. As of 30 June 2026, the company has no subsidiary, associate, or joint venture entities and maintains its registered and corporate office at GRSE Bhavan, 61 Garden Reach Road, Kolkata 700 024.
Announcement in Detail
The Board of Directors of Garden Reach Shipbuilders and Engineers Limited approved the unaudited financial results for the quarter ended 30 June 2026 during a meeting held on 29 July 2026. The company filed the results with the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.
For Q1 FY27, the company reported total income of Rs 1,91,418.14 lakh comprising revenue from operations of Rs 1,81,461.59 lakh and other income of Rs 9,956.55 lakh. Total expenses for the quarter were Rs 1,68,265.53 lakh, resulting in a profit before tax of Rs 23,152.61 lakh. After accounting for current tax of Rs 5,989.61 lakh and a deferred tax benefit of Rs 120.76 lakh, the net profit for the period was Rs 17,283.76 lakh. Total comprehensive income for the quarter, inclusive of remeasurements of defined benefit plans and related tax adjustments, stood at Rs 17,354.34 lakh.
The company's statutory auditors, Guha Nandi and Co., conducted a limited review of the unaudited quarterly financial results pursuant to Regulation 33 and 52 of the SEBI Listing Regulations 2015. The auditors issued an unqualified review report, concluding that nothing came to their attention to suggest that the financial results were not disclosed in accordance with applicable Indian Accounting Standards or contained any material misstatement. The financial results have been prepared in accordance with Indian Accounting Standard (Ind AS) 34 on Interim Financial Reporting, with accounting policies consistent with those applied in the immediately preceding financial year.
Impact on Investors
Investors will note that GRSE's operational performance in Q1 FY27 demonstrates strong execution with revenue from operations growing 38.5% year-on-year to Rs 1,81,461.59 lakh. The net profit margin improved to 9.52% in Q1 FY27 from 9.17% in the corresponding quarter of the previous year, indicating better cost management and operational efficiency. Earnings per share increased to Rs 15.09 from Rs 10.49, reflecting the higher profitability in the quarter. The disclosed financial metrics indicate that the company's revenue generation capability and cost control measures have contributed to stronger bottom-line performance.
The filing shows that GRSE's balance sheet remains strong with a net worth of Rs 2,79,966.06 lakh as of 30 June 2026, representing an increase from Rs 2,19,879.74 lakh in the corresponding quarter of the previous year. The debt-to-equity ratio remains minimal at 0.014 times, and the debt service coverage ratio stands at 36.26 times, indicating substantial capacity to service any outstanding obligations. Shareholders will observe that the company's working capital position, as reflected in a current ratio of 1.32 times, provides adequate liquidity to meet short-term obligations. These financial indicators suggest a financially stable company with low leverage and strong cash-generation capabilities, though investors should await management guidance on future capital allocation and dividend policy.
Sector / Market Context
GRSE operates within India's defence shipbuilding sector, which forms a critical component of the country's maritime capabilities. As a government undertaking under the Ministry of Defence, the company benefits from a structured order book derived from national security requirements for naval and coast guard vessels. The defence production exemption from segment reporting, granted by the Ministry of Corporate Affairs, reflects the strategic importance of the sector. India's defence modernization initiatives and increased focus on indigenous shipbuilding capacity have created a sustained demand environment for specialized shipbuilding services. The company's performance metrics, including operating margins and capital efficiency, provide investors with a transparent view of execution quality within a sector characterized by long-cycle project execution and specialized technical capabilities.