Garden Reach Shipbuilders shares hit record high as it signs MoU for India's first polar research ship

GRSE powers ahead with India’s first polar research ship

Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped 10 percent to hit fresh record high of Rs 3,464 per share on June 4 after the company signed a memorandum of understanding (MoU) with Norway’s Kongsberg for the construction of India’s first-ever polar research vessel (PRV).

The vessel will be built indigenously in India and will cater to the requirements of the National Centre for Polar and Ocean Research, which will deploy it for expeditions in the polar and southern oceans.

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This MoU marks a significant milestone for India’s shipbuilding industry, as it brings in world-class design expertise for PRV development. The vessel will be constructed at GRSE’s Kolkata yard, giving a strong push to the Union government’s ‘Make in India’ initiative.

In the March quarter of FY25, GRSE reported a sharp rise in net profit to Rs 244 crore, up from Rs 111.6 crore in the same period a year ago. Revenue rose 62 percent year-on-year to Rs 1,642 crore from Rs 1,015.7 crore.

On the operational front, EBITDA surged 145 percent to Rs 220.95 crore compared to Rs 90.35 crore a year earlier. Operating margins expanded to 13.5 percent from 8.9 percent during the same period.

The company’s board has recommended a final dividend of Rs 4.9 per share for FY25, subject to shareholder approval at the upcoming annual general meeting.

Cmde Hari PR, IN (Retd), Chairman and Managing Director of GRSE, stated: "Happy to report yet another set of strong numbers. With our robust order book, mature execution of ongoing projects, and improving visibility in both defence and commercial shipbuilding segments, I’m confident of an even stronger performance this year."

Over the past month, GRSE shares have rallied over 60 percent, vastly outperforming the Nifty 50 index, which rose just 0.3 percent in the same period.

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