Garden Reach Shipbuilders & Engineers (GRSE) has been in the spotlight recently as its shares surged by 18% following a stellar set of Q4 FY25 results. But what’s behind this sharp rise, and is it time to consider investing in GRSE?
Let’s break down the numbers and explore why investors are showing increasing interest in the stock.
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GRSE Q4 FY25 result highlights
GRSE shares shot up by 18.2% to ₹2,264.65 on May 14, 2025, after the company reported a massive 118% year-on-year (YoY) jump in its net profit for Q4 FY25. The profit after tax (PAT) reached ₹224 crore, compared to ₹112 crore in Q4 FY24. This robust performance came alongside a significant revenue boost, marking a strong end to the fiscal year.
The company’s revenue from operations grew by 62% YoY, reaching ₹1,642 crore in Q4 FY25, up from ₹1,016 crore in Q4 FY24. The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter also saw a remarkable increase, rising 101% to ₹335 crore from ₹166 crore in the same quarter of the previous year.
Here’s a quick look at the key figures from GRSE’s Q4 FY25 performance:
| Metric | Q4 FY25 | YoY Growth |
| Revenue from Operations | ₹1,642 crore | +62% |
| EBITDA | ₹335 crore | +101% |
| EBITDA Margin | – | – |
| Dividend Declared | ₹4.90 per share | – |
| Net Profit (PAT) | ₹224 crore | +118% |
Additionally, GRSE declared a final dividend of ₹4.90 per share for FY25, a significant increase from ₹3.70 per share in the previous year. This strong financial performance and the attractive dividend payout added to the optimism surrounding the company’s future prospects.
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GRSE’s growth trajectory
Looking beyond Q4, GRSE’s full-year performance for FY25 was equally impressive. The company’s PAT rose 48% to ₹527 crore from ₹357 crore in FY24. Similarly, its revenue from operations increased by 41%, reaching ₹5,076 crore compared to ₹3,593 crore in the previous fiscal year.
The company’s EBITDA for FY25 stood at ₹756 crore, up 42% from ₹534 crore in FY24. This consistent growth is a testament to GRSE’s strong order book, mature production lines, and expanding market presence, both in defence and commercial shipbuilding.
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GRSE’s stock performance
The surge in GRSE’s stock price is part of a larger trend. Over the past year, the stock has recorded an impressive 111% gain, far outpacing the market’s overall performance. Year-to-date (YTD), the stock has risen by nearly 16%, and over the past month, it has gained around 18.6%.
Here’s a quick look at the stock performance over various time frames:
| Period | Price Change |
| 1 Year | +111.08% |
| YTD (2025) | +15.97% |
| Last 6 Months | +38.29% |
| Last 3 Months | +35.87% |
| Last Month | +18.63% |
The stock’s performance reflects investor confidence in GRSE’s ability to maintain growth momentum, supported by its strong order book and ongoing production activities in the commercial shipbuilding segment.
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GRSE’s expanding opportunities
GRSE’s Chairman, Cmde Hari PR (Retd), expressed confidence in the company’s future, citing a solid order book and strong production maturity. The company’s continued focus on shipbuilding for both defence and commercial markets, as well as its expansion into the global warship market, is expected to drive growth in FY26.
In addition to its defence contracts, GRSE is seeing increasing demand for commercial vessels, with new opportunities expected to quadruple its exports over the next few years. This diversification into both defence and commercial segments positions GRSE as a key player in the shipbuilding industry, both domestically and internationally.
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What’s next for GRSE shares?
Looking ahead, GRSE’s stock appears poised for continued growth, supported by its strong order book, increasing revenue from operations, and expanding margins. Analysts are optimistic about the company’s ability to capitalise on the growing demand for indigenously-built defence equipment and commercial vessels.
With major projects like the P-17 Alpha warship project for the Indian Navy on track, GRSE is set to boost both its revenue and margins in FY27.
Given the company’s robust financial performance, strong growth trajectory, and strategic positioning in both defence and commercial shipbuilding, GRSE’s stock looks like a strong investment option for those seeking exposure to the defence and engineering sectors.
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Conclusion
With a strong performance in Q4 FY25, a solid order book, and promising growth in both defence and commercial shipbuilding, GRSE’s stock is showing impressive potential. The recent 18% surge in share price highlights investor optimism, and the company’s continued growth in FY25 makes it an attractive option for long-term investors.
If you’re considering investing in GRSE, now may be a good time, given the strong fundamentals, upcoming projects, and overall market optimism surrounding the defence sector.
