Defence shares surge 5% after global partnership deals

On Thursday, Garden Reach Shipbuilders' share price rose by 4.9 percent touching a day’s high price of Rs. 3,521.30 on NSE. The company’s stock was in focus after they signed a Memorandum of Intent (MoI) with Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG, Germany, for the construction of four follow-on 7,500 DWT multi-purpose vessels. These vessels are expected to be built as a continuation of the eight vessels which are currently under construction at GRSE’s shipyard in Kolkata. The follow-on vessels feature hybrid propulsion systems and comply with the latest cybersecurity standards. The contract for these vessels is expected to be finalised by August 31, 2025.

Further GRSE, they signed a Memorandum of Understanding (MoU) with Aries Marine, which is a reputed marine engineering firm, to collaborate on the design and development of offshore platforms designed by Aries and manufactured by GRSE. This move is part of GRSE’s vision to diversify beyond its traditional defence portfolio, and it has been making shifts in expanding its capabilities and forging global partnerships to strengthen its position in the maritime and offshore platform sector.

Financially, GRSE reported a profit after tax of Rs. 527 crore for FY25, marking a 47.61 percent increase over the previous year. Its revenue rose to Rs. 5,076 crore, up 41.27 percent from the previous fiscal year, and its earnings per share (EPS) increased to Rs. 46.04 from Rs. 31.19.

Looking ahead, GRSE’s management, led by Chairman and Managing Director Commodore P R Hari, said that the company is committed to improving its production capacity, expanding into new markets, and embracing innovation and sustainability in vessel design. The management had announced plans of increasing its shipbuilding capacity to 28 vessels from the current 24 vessels by the end of 2025. The company’s order book stood at Rs. 22,652 crore as of 31st March 2025.