Q4 Earnings Impact: Shares of Garden Reach Shipbuilders & Engineers (GRSE) surged over 14 percent on Wednesday, May 14, after the state-owned defence shipbuilder reported a stellar set of numbers for the March 2025 quarter. The company’s net profit more than doubled year-on-year (YoY), driven by strong revenue growth and margin expansion.

Profit Soars, Margins Improve

GRSE’s net profit rose sharply by 118.9 percent YoY to ₹244.2 crore in Q4FY25, compared to ₹111.6 crore in the same quarter a year ago. This impressive performance was underpinned by robust revenue growth and improved operational efficiency.

Revenue from operations came in at ₹1,642 crore, marking a 61.7 percent YoY increase from ₹1,015.7 crore in the March 2024 quarter. Operating profitability also improved significantly. The company posted an EBITDA of ₹219 crore, up 141.8 percent YoY from ₹90.6 crore, while EBITDA margin expanded to 13.3 percent, up from 8.9 percent a year earlier.

The company’s board recommended a final dividend of ₹4.90 per equity share for FY25, subject to shareholder approval. The dividend is scheduled to be paid within 30 days of its declaration at the company’s upcoming 109th Annual General Meeting.

Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, expressed optimism about the company’s outlook. “Happy to report yet another set of strong numbers. With our strong order book, production maturity of the ongoing projects and order visibility, including in the commercial shipbuilding segment, I am confident of even better performance during the current financial year,” he said in a statement.

Stock Performance

Following the earnings announcement, the defense stock jumped 14.4 percent intraday to hit a high of ₹2,191.90 on the BSE. Despite the strong rally, the stock remains nearly 23 percent below its all-time high of ₹2,834.60, which it hit in July 2024.

Over the past year, the stock has delivered multibagger returns, gaining 111 percent. On a monthly basis, GRSE has been on a strong upward trajectory, rising 13.5 percent in May, after a 14 percent gain in April and an impressive 34 percent surge in March. However, the stock did witness some volatility earlier this year, falling 22.6 percent in February, and rising marginally 0.5 percent in January.

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