Garden Reach Shipbuilders & Engineers (GRSE) builds warships, patrol vessels and frigates for the Indian Navy and Coast Guard, and heads into its Q2 FY 2026-2027 print with its order book having declined for four straight quarters to Rs. 13,596.26 Cr. The two big things the print will speak to are whether the ~Rs. 33,000 Cr Next Generation Corvette contract — cleared by the Cabinet Committee on Security in late October 2026 but not yet signed — converts into an order, and whether EBITDA margins hold near the FY26 level of 11.6% against a sharp rise in steel prices.
| Results date | November 04, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,814.62 Cr |
| Previous quarter PAT | Rs. 172.84 Cr |
| Previous quarter EBITDA margin | 13.71% (derived, as stated in the filing summary) |
| Market cap | Rs. 22,274.74 Cr |
| CMP | Rs. 1,943.7 |
A board meeting is scheduled on November 04, 2026, to consider the Q2/H1 FY27 financial results. The trading window remained closed from October 01 to November 06, 2026.
The central question for this quarter is the order book: it has fallen four quarters in a row, from Rs. 20,205.56 Cr in September 2025 to Rs. 13,596.26 Cr in June 2026, including an 11.28% decline during April–June 2026, and the ~Rs. 33,000 Cr NGC contract was still unsigned at the September 30 close — the Cabinet Committee on Security cleared the 8-ship programme worth over Rs. 40,000 crore on October 28, 2026, with signing expected within days.
Management guided FY27 EBITDA margins as 'similar' to FY26's 11.6%, but domestic HRC steel rose roughly Rs. 6,000/t between August and September 22 to Rs. 64,000/t — a four-year high, up 25% YoY — while employee costs are guided 15–20% higher from the upcoming pay commission.
Execution cadence supports the 'FY27 peak revenue year' call: Q1 FY27 revenue grew 38.53% YoY to Rs. 1,814.62 Cr, and the window saw the NGOPV 'Shruti' launch (11 Aug 2026), the ORV Sagar Manthan launch (9 Sep 2026) and the commissioning of INS Mahendragiri (11 Jul 2026). Post-quarter inflows of Rs. 1,115.03 Cr — led by the ONGC award for 4 Platform Supply Vessels worth Rs. 1,032.07 Cr incl.
GST — were non-naval and alone do not bend the order-book decline, making the September 30 order-book print and any NGC signing update the key items for the call.
NGC contract signing status: The ~Rs. 33,000 Cr Next Generation Corvette contract has slipped from Q4 FY26 to the June quarter to 'this quarter' (Q2 FY27).
Order book rebuild vs the ~Rs. 70,000 Cr 'order book plus' FY27-end target
EBITDA margin vs 'similar margins' guidance
Capacity build-out and Raichak greenfield execution
Employee cost and board-composition overhangs
The contract was guided for signing 'this quarter' (Q2 FY27) after earlier slippage from Q4 FY26 and the June quarter. The Cabinet Committee on Security cleared the 8-ship programme worth over Rs. 40,000 crore on 28 Oct 2026, with contracts expected to be signed in the next few days, though as of 30 Oct 2026 they had not been formally signed.
Management guided FY27 EBITDA margins as 'similar' to FY26's 11.6% but declined to give an exact percentage. Analysts flagged that FY25 (8.3%) and FY26 (11.6%) margins included Q4 provision write-back benefits whose quantum was not disclosed.
The order book fell from Rs. 20,205.56 Cr in September 2025 to Rs. 13,596.26 Cr in June 2026, including an 11.28% decline in April–June 2026, as the guided ~Rs. 50,000 crores FY26-end target — linked to NGC conclusion — was not met. Management has set an 'order book plus' target of around Rs. 70,000 crores by end FY27, contingent on the NGC contract and P-17 Bravo.
GRSE announced a combined Rs. 5,566 Cr outlay: a Rs. 2,896 Cr greenfield shipyard at Raichak (board-approved 21 Sep 2026) and Rs. 2,670 Cr of brownfield expansion across three facilities. Per the Q1 FY27 call, the buckets are ~Rs. 200 Cr minor projects within 18 months, ~Rs. 2,200 Cr for the West Bengal greenfield yard in 3–5 years, and ~Rs. 2,000 Cr for the Gujarat facility.
Revenue from operations rose 38.53% YoY to Rs. 1,814.62 Cr in Q1 FY27, the 17th consecutive quarter of upward financial trend per the CMD, though it fell 14.37% QoQ from Q4 FY26's delivery-heavy peak of Rs. 2,119.21 Cr. Management expects the current performance to replicate in coming quarters, anchored on P-17 Alpha (~Rs. 4,500 Cr remaining) and ASW SWC (~Rs. 1,816 Cr) completion.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.