GRSE shares soar 5%, up 18% in two sessions. What’s triggering the surge?

Shares of state-owned defence shipbuilder Garden Reach Shipbuilders & Engineers rallied as much as 5% to their day’s high of Rs 2,640 on the BSE on Thursday after its net profit for the third quarter ended December 2025 rose to Rs 171 crore, compared with Rs 98 crore in the same quarter last year. This represents a 74% year-on-year increase in profit.

On a sequential basis, profit was also higher than the Rs 154 crore reported in the September quarter.

Revenue from operations for the quarter stood at Rs 1,896 crore, up from Rs 1,271 crore in the year-ago period, marking a 49% year-on-year growth. Compared with the September quarter revenue of Rs 1,677 crore, revenue increased 13.0% quarter-on-quarter.


Total expenses during the quarter increased to Rs 1,740 crore, compared with Rs 1,209 crore in the December 2024 quarter, in line with the higher scale of operations. The cost of materials consumed stood at Rs 1,252 crore, while subcontracting charges were Rs 132 crore. Employee benefit expenses came in at Rs 101 crore, marginally higher on a year-on-year basis. Finance costs remained low at Rs 4 crore, highlighting the company’s healthy balance sheet.

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Profit before tax rose to Rs 218 crore from Rs 134 crore in the year-ago period, registering a 62.7% year-on-year increase. Tax expense for the quarter stood at Rs 47 crore, resulting in strong growth in net profit.

For the nine months ended December 31, 2025, GRSE reported a net profit of Rs 445 crore, compared with Rs 283 crore in the same period last year, marking a 57.1% year-on-year rise. Revenue from operations for the nine-month period increased to Rs 4,883 crore from Rs 3,434 crore, reflecting a 42.2% growth.

Alongside the results, the board of directors approved a second interim dividend of Rs 7.15 per equity share for FY26, amounting to a total payout of Rs 81.9 crore. The dividend has been declared out of profits for the nine months ended December 2025, with February 3 fixed as the record date to determine eligible shareholders.

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