Garden Reach Shipbuilders & Engineers (GRSE), the state-owned defense shipbuilder, has delivered a robust performance for the fourth quarter of FY25, sending its stock price soaring by over 14%. The company’s impressive results were driven by a significant increase in net profit, strong revenue growth, and improved operational efficiency. As a result, GRSE’s stock gained momentum on May 14, after it reported an eye-catching 118.9% year-on-year (YoY) increase in net profit for the quarter. Let’s take a deeper look into the key highlights of GRSE’s Q4 earnings and how they impacted its stock price.
Strong Financial Performance: GRSE’s Q4 Results
1. Net Profit More Than Doubles
GRSE’s net profit for Q4FY25 surged to ₹244.2 crore, more than double the ₹111.6 crore reported in the same quarter last year. This 118.9% increase is a testament to the company’s strong business fundamentals and its ability to execute projects efficiently. The remarkable growth in profit reflects not only an increase in revenue but also the company’s successful focus on improving its operational efficiencies.
The profit surge is a welcome sign for shareholders and potential investors, confirming GRSE’s potential to generate sustainable growth in the long term. The company’s strong order book, expanding production capacity, and increasing visibility in the commercial shipbuilding segment are expected to keep the momentum going in the coming quarters.
2. Revenue Growth and EBITDA Surge
Revenue from operations for Q4FY25 stood at ₹1,642 crore, a 61.7% increase from ₹1,015.7 crore in Q4FY24. This impressive rise in revenue can be attributed to the ongoing execution of orders, with GRSE focusing on both defense and commercial shipbuilding. The company’s diversified portfolio and robust demand for its products played a significant role in driving revenue growth.
In addition to strong revenue growth, GRSE reported a sharp increase in EBITDA, which grew by 141.8% YoY to ₹219 crore from ₹90.6 crore in the same period last year. As a result, the EBITDA margin expanded to 13.3%, up from 8.9% a year ago. This improvement in operational profitability further strengthens the company’s financial position and highlights its ability to scale up operations efficiently.
Dividend Announcement: A Positive Signal for Shareholders
GRSE’s board of directors has recommended a final dividend of ₹4.90 per share for FY25, pending approval at the upcoming 109th Annual General Meeting. This dividend payout will be a welcome relief for investors, offering them a share of the company’s enhanced profitability. The payment, scheduled within 30 days of approval, reflects the company’s commitment to rewarding shareholders while continuing to reinvest in its business growth.
Chairman’s Optimistic Outlook
Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, expressed his optimism about the company’s future. He emphasized that the strong order book, coupled with the ongoing production maturity of projects, positions GRSE for even better performance in the current financial year. The company also remains optimistic about its potential in the commercial shipbuilding sector, which has shown promising growth prospects.
“The company has delivered yet another set of strong numbers. With our solid order book, production maturity, and visibility in the commercial shipbuilding segment, I am confident of even better performance in FY26,” said Cmde Hari PR, reflecting the positive sentiment around GRSE’s future growth.
Stock Performance: GRSE on an Upward Trajectory
Following the release of the Q4 results, GRSE’s stock price experienced a significant rally, rising 14.4% intraday to hit a high of ₹2,191.90 on the BSE. This surge is indicative of the market’s strong reaction to the company’s impressive earnings performance. Despite the strong upward movement, GRSE’s stock remains around 23% below its all-time high of ₹2,834.60, which it achieved in July 2024.
Over the past year, GRSE has delivered multibagger returns to its shareholders, gaining 111%. The stock has been on a consistent upward trend in recent months, rising by 13.5% in May, following a 14% gain in April and an incredible 34% surge in March. Despite some volatility earlier this year, with a 22.6% dip in February, GRSE’s recent performance underscores its strong recovery and investor confidence.
Conclusion: What’s Next for GRSE and Investors?
Garden Reach Shipbuilders & Engineers has certainly made a mark with its Q4 earnings, which reflect impressive growth across key financial metrics. The 118.9% YoY increase in net profit, along with strong revenue growth and improved margins, positions the company well for the future. Additionally, the proposed dividend payout is a positive signal for investors, providing them with a return on their investment as the company continues to strengthen its financial position.
For investors, GRSE’s outlook remains positive, particularly with its strong order book and expanding footprint in the commercial shipbuilding space. As the company continues to execute projects effectively and leverage its operational efficiencies, it may continue to be a strong performer in the defense and shipbuilding sectors.
