Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) saw a significant 18% surge during trading hours on Wednesday following the company’s announcement of its highest-ever annual turnover and robust operational performance for the financial year 2025–26.
By midday, the stock was trading at Rs 2,322, reflecting a gain of Rs 351.20 or 17.82%.
GRSE disclosed a record-breaking annual turnover of Rs 6,400 crore for FY26, a substantial increase from Rs 5,076 crore in the preceding fiscal year, representing a notable 26% growth.
The company attributed the rise in its stock to the announcement of achieving its highest annual turnover in history for FY 2025–26, reaching Rs 6,400 crore compared to Rs 5,076 crore in FY 2024–25. Additionally, GRSE declared an interim dividend of 129%, up from 89.5% in the previous year, which contributed to a positive investor sentiment.
During the year, GRSE accomplished the commissioning of five vessels and the delivery of eight vessels to the Indian Navy, marking significant milestones. These vessels included frigates, survey vessels, and anti-submarine warfare crafts, showcasing steady advancements in defense shipbuilding. The company also stated notable progress in constructing 12 export vessels for a German client and a Dredger for a friendly foreign nation.
The surge in GRSE shares was underpinned by robust trading activity, with approximately 40 lakh shares exchanged during the session, well above the 20-day average of 3.3 lakh shares, indicating heightened investor interest post the company’s update.
The positive market sentiment extended to other shipbuilding firms, with shares of Mazagon Dock Shipbuilders Ltd and Cochin Shipyard Ltd experiencing gains of up to 20%. While these companies have not released similar updates, GRSE’s strong performance seems to have positively impacted the sector at large.
The momentum in the shipbuilding industry persists, fueled by defense contracts and export prospects. With increased revenue, efficient execution, and enhanced shareholder returns through dividends, GRSE witnessed a substantial reaction from investors during the trading session.