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Garden Reach Shipbuilders shares fall; Co says growth for next two years to be similar to FY25Garden Reach Shipbuilders said the contract negotiation for the next gen corvette project is currently in progress and its order value is expected to be ₹25,000 crore. It expects the contract to be concluded by December 2025 or the end of FY26.By Rhea Bhatia   August 20, 2025, 9:58:34 AM IST (Published)3 Min ReadShares of Garden Reach Shipbuilders declined on Wednesday, August 20, after the company, in its earnings call said, topline and bottomline growth over the next two financial years to be similar to the last fiscal.

The company's order book at the end of the June quarter stood at ₹21,700 crore in comparison to ₹22,680 crore in the year-ago period. The order book comprises of 10 projects with 40 marine platforms.

Garden Reach Shipbuilders said the contract negotiations for the next generation corvette project is currently in progress and that order value is expected to be around ₹25,000 crore. GRSE expects the contract to be awarded to the company either in December 2025 or by the end of financial year 2026.

The company said the Navy and Coast Guard is also likely to post several large request for proposals (RFPs) over the next 18 months.

The order value of the RFP from the Navy for the P-17 Bravo project is expected to be ₹70,000 crore. It would be split between two shipyards. The RFP is likely to be floated by the end of this year, according to the management.

Shipbuilding capacity and expansion plans

By 2026, Garden Reach Shipbuilders said it intends to increase its shipbuilding capacity to 32 concurrent ships from the present 28 ships.

It also intends to acquire one more dry dock in Kolkata to further augment capacity for ship repairs.

The company said it is planning to set up a greenfield shipbuilding facility within West Bengal. It also intends to set up a greenfield shipyard, either on the west or east cost of India, it added.

Key Delivery Schedules

At present, Garden Reach Shipbuilders is executing the construction of two P-17-ALPHA ships. The second ship is to be delivered by April 2026, the third ship is to be delivered by August 2026.

Survey vessel large project: The fourth and last ship, is expected to be delivered by the end of 2025.

Anti-submarine shallow water craft project: Second ship to be delivered by the end of August 2025. Two more ships will be delivered in FY26. The company will deliver the remaining four ships by the end of 2026.

Next generation offshore petrol vessel project: Expected to be completed as per schedule by FY29.

Garden Reach Shipbuilders reported a 38% increase in its net profit in the first quarter at 87 crore from the previous year. Its revenue increased 30% to ₹1,010 crore, EBITDA was up 99% at 56 crore and margins expanded by 297 basis points to 5.58% form the previous year.

Shares of Garden Reach Shipbuilders are trading 0.8% lower at ₹2,582. The stock has remained flat over the last one month.

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