Garden Reach Shipbuilders Shares Soar Over 14% as Q4FY25 Net Profit More Than Doubles

Garden Reach Shipbuilders & Engineers Ltd (GRSE) delivered a strong financial performance for the March 2025 quarter (Q4FY25), triggering a sharp rally in its share price. The defense PSU’s stock surged over 14% intraday on May 14, buoyed by a stellar set of quarterly earnings that showcased a 118.9% year-on-year (YoY) increase in net profit, alongside robust revenue growth and significant margin expansion.

Q4FY25 Financial Highlights

• Net Profit: ₹244.2 crore
  (up 118.9% YoY from ₹111.6 crore in Q4FY24)

• Revenue from Operations: ₹1,642 crore
  (up 61.7% YoY from ₹1,015.7 crore)

• EBITDA: ₹219 crore
  (up 141.8% from ₹90.6 crore)

• EBITDA Margin: 13.3%
  (up from 8.9% in the same period last year)

GRSE’s excellent quarterly numbers were attributed to a combination of strong order execution, production maturity of ongoing shipbuilding projects, and improved cost efficiencies.

Dividend Announcement

The company’s board has recommended a final dividend of ₹4.90 per equity share for FY25, subject to shareholder approval at the upcoming 109th Annual General Meeting (AGM). The dividend, once approved, will be disbursed within 30 days of declaration.

Management Commentary

Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, shared an optimistic outlook:

“Happy to report yet another set of strong numbers. With our robust order book, maturity in production lines, and rising commercial shipbuilding opportunities, we expect even stronger performance in the coming year.”

Stock Performance Overview

• Intraday High (May 14, 2025): ₹2,191.90 on the BSE

• Current Price Status: Despite the surge, the stock is still ~23% below its all-time high of ₹2,834.60 (recorded in July 2024)

Recent Returns:

• 1-Year Gain: 111% (multibagger returns)

• May 2025: +13.5%

• April 2025: +14%

• March 2025: +34%

• February 2025: -22.6%

• January 2025: +0.5%

Despite earlier volatility, GRSE has demonstrated a strong uptrend in recent months, driven by growing investor confidence in India’s defense manufacturing capabilities and the company’s consistent execution.

Outlook

With a strong order pipeline and sustained demand in the defense and commercial shipbuilding space, GRSE is well-positioned to deliver continued earnings growth. The company’s operational maturity, improved margins, and increasing dividend payouts make it a stock to watch in the PSU and defense sector going forward.

Disclaimer: The above information is based on publicly available company filings and stock market data. Investors are advised to verify all details through official sources and consult financial advisors before making any investment decisions.