Garden Reach Shipbuilders & Engineers Ltd

Order details

• Awarding entity: West Bengal Tourism Development Corporation Limited (WBTDCL), domestic entity.
• Nature and scope: Procurement of two 100 Pax Electric Ferries.
• Contract value: ₹45.02 crore.
• Execution timeline: completion within 18 months from signing.
• Related-party considerations: no promoter interest; not a related party transaction.

Expansion details

• Three facilities to expand GRSE capacity: Raichak, Shalimar Timber Pond, and Kidderpore Damodar.
• Total capex for expansions amounts to ₹2,670 crore across three sites.
• Raichak hub with 200m dry dock and 356m waterfront.
• Investment over ₹2,500 crore; enables warships up to 200m and vessels to 60,000 DWT.
• Shalimar Timber Pond to be rejuvenated with nearly ₹100 crore; 130m dry dock and 120m slipway.
• Damodar facility to receive around ₹70 crore for medium-sized vessel work and ferries.
• YIL MSF Ishapore to add two facilities with >₹750 crore investment.
• 59-crore press for open die forging to replace ageing 2,650-ton press.
• 84-crore Radial Forging Plant to produce super alloy forgings and ordnance parts.
• Leases signed with SMPK for two small shipyards and 32-acre Raichak riverside site.
• Facilities will use Industry 4.0 and energy-efficient technologies to boost domestic manufacturing.

Financial Performance

• Total income for Q1 FY27 was ₹1,914 crore, up 38% YoY.
• Revenue from operations rose to ₹1,815 crore, up 39% YoY.
• Profit after tax rose 44% to ₹173 crore.
• Earnings per share increased 44% to ₹15.09.
• Navratna status conferred; supports expansion and strategic initiatives.

Order Book and Projects

• Current order book stands at ₹13,596 crore; shipbuilding ₹13,296 crore; other divisions ₹300 crore.
• 11 projects, 44 marine platforms; includes 9 warships and 1 P-17 Alpha.
• P-17 Alpha: first two ships delivered ahead of schedule; 85% construction complete.
• NGOPV: first ship launched; second launching on 11th; deliveries start Q2 FY28.
• Ocean Research Vessel 20% progress; Acoustic 12%; Coastal 5%; keel for Coastal September.
• Dredger for Bangladesh ~70% progress; 13 electric ferries for West Bengal.
• 12 multipurpose vessels for German client; four platform vessels awarded.
• NGC revenue: contract expected this quarter; revenue recognition begins FY2028.
• NGC eight-ship project; first delivery after five years; completion in eight years; 2034-35.
• NGD timeline: RFP not until FY29; DAC approval possible this year; RFP ~1.5 years after.
• Exports: non-defense exports require no government approval; defense exports require G2G arrangements; prioritizing Indian opportunities.
• Water metro projects: per metro ₹200-₹300 crore; total 30-40 platforms, five states; ₹1,500 crore.

Capex and Expansion

• Minor capex: ₹200 crore for two Kolkata Port Trust facilities; 18-month completion.
• Major capex: West Bengal shipyard expansion ₹2,200 crore; final DPR; 3-5 years to set up.
• Gujarat facility: ₹2,000 crore; total ship solution facility; PPP model; approvals this year.
• Capacity up to 32 platforms by year-end; Raichak shipyard near sea.
• Western seaboard facility; PPP; approvals this year; operations start next year; 3 years to operate.

Indigenization and Sourcing

• Overall ship cost indigenization around 80-85%; 100% in some components.
• Float components about 10% of ship cost; propulsion engines not fully indigenous.
• Fight components indigenized up to ~60%.
• Diesel engines and turbines under government indigenization programs; 100% indigenous diesel alternators.
• Survival equipment 70%; deck machinery 90%; Bailey Bridge 100% indigenous.
• GRSE Accelerator: 101 startups engaged.

Q&A Highlights

• NG Corvette: contract expected this quarter; revenue recognition begins FY2028.
• NGD timeline: RFP not till FY29; DAC approval possible this year; RFP ~1.5 years after.
• Exports: non-defense exports require no government approval; defense exports via G2G.
• Water metro: per metro ₹200-₹300 crore; 30-40 platforms; five states; total ₹1,500 crore.
• Pay commission: employee costs likely rise 15-20%; already factored.

Financials

• Revenue from operations for quarter ended 30 Jun 2026: Rs 181,461.59 lakh, up 38.5% YoY.
• Total income (1+2) for the quarter: Rs 191,418.14 lakh, up 38.6% YoY.
• Profit before tax: Rs 23,152.61 lakh, up 38.9% YoY.
• Profit after tax: Rs 17,283.76 lakh, up 43.9% YoY.
• EPS (basic & diluted): Rs 15.09; up 43.9% YoY.
• Tax: current Rs 5,989.61 lakh; deferred Rs (120.76) lakh.
• Net worth Rs 2,79,966.06 lakh; PAT for quarter Rs 17,283.76 lakh.
• Current ratio 1.32; long-term debt to working capital 0.017.

Disclosures

• Board approved unaudited results on 29 July 2026.
• Segment reporting exempted under MCA due to defence production.
• Limited Review by Guha Nandi & Co; no audit opinion.

Business & Balance

• No subsidiary/associate/joint venture as of 30 Jun 2026.
• Trade receivables turnover 6.27x; inventory turnover 2.23x.

Meeting Details

• Board meeting scheduled for 29 July 2026 to consider unaudited quarterly results for quarter ended 30 June 2026.
• Time and venue not disclosed in filing.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended 30 June 2026.

Other Notes

• Trading window remains closed from 01 July 2026 to 31 July 2026.

Demat status for the period

• No dematerialisation/rematerialisation requests were received or processed during 01 Apr 2026 to 30 Jun 2026.
• No securities were received for dematerialisation, so no certificates were mutilated or cancelled.
• No substitution of the depository's name as registered owner within 15 days.

Appointment of Cost Auditor

• Board approved appointment of M/s. Bandyopadhyaya Bhaumik & Co. as Cost Auditor for FY 2026-27.
• Approval under Regulation 30 of SEBI LODR.
• Annexure-1 provides the cost audit credentials and sector experience of the firm.

Internal Auditor Appointment

• Board approved SPAN & Associates as Internal Auditors for FY 2026-27 at meeting on 10 Jul 2026.
• Annexure-1 contains the brief profile of SPAN & Associates.
• Appointment complies with SEBI LODR regulations and Companies Act provisions.

Appointment details

• Appointment of Shri Sanjay Sarkar as General Manager (Technical), GRSE.
• Effective date: 01 July 2026.
• Profile: Joined GRSE in 2012 as Deputy General Manager (ERP).
• Education: BE Electrical Engineering from NIT Durgapur.
• Previous role: Additional General Manager (IT).
• No other material reasons stated for appointment.