Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) were in focus after the defence PSU reported strong unaudited financial results for the quarter and nine months ended December 31, 2025, along with the declaration of a second interim dividend for FY26. The company posted a sharp jump in profit, healthy revenue growth, and maintained a strong balance sheet with negligible debt. The announcement triggered fresh investor interest, with the stock witnessing continued momentum.
Strong quarterly performance
Garden Reach Shipbuilders & Engineers Ltd, a Government of India undertaking under the Ministry of Defence, informed stock exchanges that its board has approved the unaudited financial results for the quarter and nine months ended December 31, 2025.
For the December quarter, GRSE reported a profit after tax (PAT) of ₹170.8 crore, compared with ₹98.2 crore in the corresponding quarter last year, marking a strong year-on-year growth. Revenue from operations for the quarter stood at ₹1,895.9 crore, up from ₹1,271.1 crore a year ago, reflecting robust execution of defence shipbuilding orders.
Nine-month numbers show consistent growth
For the nine months ended December 31, 2025, the company posted a net profit of ₹444.7 crore, compared with ₹283.2 crore in the same period last year. Total income for the period rose sharply to ₹5,086.2 crore, from ₹3,656.4 crore earlier.
The improvement was supported by higher scale of operations, stable margins, and better cost management. GRSE’s net profit margin improved to 9.11%, compared with 8.25% in the previous year period.
Dividend
Along with the results, the board of Garden Reach Shipbuilders & Engineers Ltd declared a second interim dividend of ₹7.15 per equity share of face value ₹10 for FY 2025–26. The total dividend payout amounts to ₹81.9 crore.
The company has fixed February 3, 2026, as the record date to determine shareholders eligible for the interim dividend. The dividend will be paid out of profits generated during the nine-month period ended December 31, 2025.
Balance sheet remains strong
GRSE continues to maintain a very healthy balance sheet. As per the latest disclosures:
- Debt-to-equity ratio stood at just 0.014, indicating negligible leverage
- Net worth increased to ₹2,401.6 crore, compared with ₹1,940.9 crore last year
- Earnings per share (EPS) for the nine-month period rose to ₹38.82, from ₹24.72 earlier
The company also reported a strong interest coverage ratio of nearly 45 times, highlighting comfortable liquidity and low financial risk.
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Why the stock is in focus
Market participants are tracking Garden Reach Shipbuilders & Engineers Ltd closely amid:
- Strong execution of defence shipbuilding orders
- Rising profitability and improving margins
- Consistent dividend payouts
- Long-term visibility from the Indian Navy and Coast Guard order book
The stock has already delivered strong long-term returns, and the latest financial performance has reinforced confidence in the company’s fundamentals.
Outlook
With India’s defence indigenisation push gaining pace, Garden Reach Shipbuilders & Engineers Ltd remains well-positioned in the warship and patrol vessel segment. Analysts believe that sustained order inflows, disciplined execution, and a debt-light balance sheet could continue to support earnings visibility over the medium term.
However, as with all PSU defence stocks, execution timelines and order flow updates will remain key monitorables for investors.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult a certified financial advisor before making any investment decisions.
Sumit Ghatala is a stock market researcher and financial content writer with over 8 years of experience tracking Indian equity markets, corporate earnings, and sectoral trends. He focuses on analysing company fundamentals, quarterly results, and broader market movements to provide readers with clear and structured insights.
Sumit’s work is aimed at simplifying complex market data and helping retail investors understand risks, opportunities, and long-term perspectives through balanced and reader-friendly analysis.