Back in 1960, Garden Reach Shipbuilders & Engineers (GRSE) started out building utility boats in Kolkata. Sixty-five years later, it’s become one of India’s top defence shipbuilders with patrol vessels, survey ships, and corvettes sailing out of its three yards. It’s also the first Indian shipyard to export warships. But 2025 has put GRSE in a very different league.
This May, GRSE emerged as the L1 bidder for an over ₹25,000 crore contract to build eight Next Generation Corvettes for the Indian Navy; the biggest deal in its history. These aren’t basic patrol boats. They’re stealth-enabled, multi-role combat ships that will become frontline assets for the Indian Navy over the next decade. For GRSE, this win isn’t just about size. It’s a validation of decades of quiet, steady execution — and a sign of what’s coming next.
The shipyard has already delivered over 100 vessels, mostly for Indian defence forces. But it’s now looking beyond; with warship exports to Mauritius and Seychelles already in the bag, and more global orders likely ahead. It’s also moving up the value chain, integrating advanced systems like AI-based QA, modular construction, and combat electronics into its vessels. In defence PSU land, GRSE is punching far above its weight.
By the numbers:
- Market capitalisation: ₹31,578 crore
- Total revenues (FY25): ₹5,076 crore
- Net profit (FY25): ₹527 crore
- Promoter holding: 74.5%
So what’s working? First, defence scale. GRSE has the infrastructure: three yards in Kolkata, and decades of design and manufacturing experience. It’s built survey vessels, landing craft, missile corvettes, and more. The ₹25,000 crore corvette contract will now give it multi-year revenue visibility and project depth.
Second, profitability. GRSE’s profit has tripled over three years. It’s nearly debt-free, has a 30% dividend payout policy, and runs with a sharp ROCE of 37%. Margins are modest around 8% but the financials are clean and stable. For a government-owned entity, that’s rare.
Third, credibility. GRSE hasn’t been in the news as much as Mazagon Dock or Cochin Shipyard. But it’s slowly built trust not just with Indian forces, but with small export clients too. It’s not bidding wildly. It’s building what it knows, and scaling up smartly.
On the ground, things are moving fast. The company is ramping up capacity, hiring more workers, and automating its production lines to meet deadlines for the corvette project. These ships will be complex, stealthy, sensor-loaded, and built for high-speed operations. Timely delivery will be GRSE’s real test.
But there are a few things to watch. GRSE’s operating cash flow in FY24 was negative ₹707 crore. That’s not unusual for defence PSUs, where revenue comes in tranches. But it does mean cash flow volatility will remain. Valuation is also high at nearly 60x earnings and 15x book. And like most defence PSUs, GRSE is highly dependent on one client: the Indian government.
So what’s the takeaway?
GRSE doesn’t make noise. It builds. And right now, it’s building more than just warships: it’s laying the foundation for India’s next phase of defence manufacturing. With a ₹25,000 crore order, zero debt, and growing export ambitions, it’s quietly becoming one of the most strategic players in naval space.
More importantly, it’s part of a larger shift. India’s defence PSUs, from shipyards to electronics and simulation companies are stepping out of their slow-moving past and into long-term, execution-driven growth. As defence budgets rise and global supply chains reset, companies like GRSE are suddenly in the right place at the right time.
Where that leads and how well they deliver is still an open question. But the pieces are finally in place.
