Key Financial Figures (Q1 FY27)

  • Total Income: ₹1,914 crore (38% YoY growth from Q1 FY26)
  • Revenue from Operations: ₹1,815 crore (39% YoY growth from ₹1,310 crore in Q1 FY26)
  • Profit After Tax (PAT): ₹173 crore (44% YoY growth from ₹120 crore in Q1 FY26)
  • Earnings Per Share (EPS): ₹15.09 (44% YoY growth from ₹10.49 in Q1 FY26)

Operational & Strategic Highlights

  • Navratna Status: Accorded by Government of India, Department of Public Enterprises on 19 June 2026.
  • Ship Commissions: Three ships commissioned into Indian Navy by Prime Minister on 21 June 2026:
  • INS Dunagiri (2nd P17A Alpha stealth frigate)
  • INS Sanshodhak (4th Survey Vessel Large)
  • INS Agrai (4th Anti-Submarine Shallow Water Craft)
  • New Orders: Received notification award for:
  • Four Platform Support Vessels (PSV) from ONGC
  • One fully electric tug from Syama Prasad Mookerjee Port, Kolkata

Order Book Status

  • Total Order Book: ₹13,596.26 crore
  • Shipbuilding Division: ₹13,296 crore (97.8% of total)
  • Other Divisions: ₹300.26 crore (Engineering & Engine divisions)
  • Composition: 11 projects consisting of 44 marine platforms

Breakdown of Shipbuilding Order Book

  • Defense Projects:
  • P-17 Alpha Frigate: ₹4,519 crore (1 ship)
  • Next-Gen Offshore Patrol Vessels (NGOPV): ₹3,075 crore (4 ships)
  • Anti-Submarine Shallow Water Craft: ₹1,815 crore (4 ships)
  • Ocean Research Vessel: ₹740 crore (1 ship)
  • Acoustic Research Ship: ₹450 crore (1 ship)
  • Coastal Research Vessel: ₹258 crore (2 ships)
  • Survey Vessel Large: ₹225 crore (residual)
  • Non-Defense Projects:
  • 1,000m³ Trailing Suction Hopper Dredger for Bangladesh: Part of ₹1,355 crore (with Multipurpose Vessels)
  • 13 Electric Ferries for West Bengal Govt: ₹203 crore
  • 12 Multipurpose Vessels for German client: Part of ₹1,355 crore
  • Green Tug & 4 PSVs: Newly awarded (values not quantified)

Project Execution Status & Timeline

Ongoing Projects

  • P-17 Alpha Frigate:
  • First two ships delivered ahead of schedule
  • Third ship at 85% physical progress
  • Expected delivery: November 2026 (current calendar year)
  • Anti-Submarine Shallow Water Craft (8 ships):
  • 4 ships already delivered
  • Ship 5: 91% complete
  • Ship 6: 88% complete
  • Ships 7-8: 65-70% complete
  • All 4 remaining ships to be delivered in FY27
  • Next-Gen Offshore Patrol Vessels (4 ships):
  • First ship: Launched
  • Second ship: Launching on 11 August 2026
  • Third & fourth ships: Launch in Q3 & Q4 FY27
  • Delivery schedule: Commencing Q2 FY28 through Q2 FY29
  • Research Vessels:
  • Ocean Research Vessel: 20% physical progress
  • Acoustic Research Ship: 12% physical progress
  • Coastal Research Vessel: 5% physical progress (keel laying in September 2026)
  • West Bengal Ferries (13 ships):
  • Two platforms to be delivered in September & October 2026
  • Balance ships by April 2027
  • Bangladesh Dredger: 70% physical progress
  • German Multipurpose Vessels (12 ships):
  • Construction commenced on 5 ships
  • Balance as per contractual schedule

Orders in Pipeline

Immediate Opportunity

  • Next Generation Corvette (NGC):
  • GRSE is L1 shipyard
  • Expected contract signing: Q2 FY27 ("anytime now")
  • Revenue recognition to commence in FY28
  • Project duration: 8 years (first ship after 5 years)

Live Tenders (Defense)

1. 120 Fast Interceptor Crafts (Indian Navy)

  • Value: ~₹3,500 crore
  • Bid submission: September 2026

2. 31 Follow-on Water Jet FAC (Indian Navy)

  • Value: ~₹3,500 crore

3. 22 Interceptor Boats (Indian Navy)

  • Value: ~₹1,200-1,300 crore
  • Bids already submitted

4. 6 Next-Gen OPVs (Indian Coast Guard)

  • Value: ~₹2,500 crore

5. P-17 Bravo Frigates

  • DAC AON value: ₹70,000 crore

Expected RFPs in CY2026

1. 12 Mine Countermeasure Vessels (Indian Navy)

  • DAC AON value: ₹36,000 crore
  • Likely split between two shipyards (8+4)
  • RFP expected in current calendar year

2. 4 Landing Platform Docks (LPD) (Indian Navy)

  • Value: ~₹35,000 crore
  • RFP expected in current calendar year

Commercial Ship Opportunities

  • Live Tenders:
  • 4 MR Tankers
  • 6 Very Large Gas Carriers (VLGC)
  • 6 Aframax Vessels
  • Expected Tender:
  • Container ships (expected soon)

Total Pipeline Estimate

  • Defense Sector: ~₹150,000 crore orders in near future
  • ₹80,000 crore from live RFPs
  • ₹70,000 crore from expected RFPs

Expansion Plans & CAPEX

Capacity Enhancement

  • Current Capacity: Concurrent construction of 28 platforms
  • Near-term Target: Increase to 32 platforms by end-CY2026 through modernization
  • Long-term Target: Increase to 43 platforms through expansion

Expansion Projects

1. Brownfield Expansion (Kolkata):

  • Two facilities on long-term lease from Syama Prasad Mookerjee Port
  • Revitalization already commenced
  • CAPEX: ~₹200 crore
  • Completion: 18 months

2. Greenfield Expansion (West Bengal - Raichak):

  • New shipyard closer to sea
  • Approvals expected in CY2026
  • Infrastructure build-up from 2027
  • CAPEX: ~₹2,200 crore
  • Timeline: 3-5 years for full operationalization

3. Greenfield Expansion (Western Seaboard - Gujarat):

  • Total ship solution facility (shipbuilding, green ship recycling, ship repair)
  • PPP model
  • Approvals expected in CY2026
  • Project commencement: 2027
  • CAPEX: ~₹2,000 crore
  • Timeline: 3 years for operationalization

Capability Enhancement

  • Focus on new technology adoption and robotics in production processes
  • Western facility will enable construction of larger vessels (Aframax, VLGC types)
  • Eastern facilities to focus on defense shipbuilding

Indigenization Status

Shipbuilding Components

  • Float (Hull - 10% of cost): 100% indigenous
  • Fight (Weapons & Systems): ~60% indigenous
  • Move (Propulsion & Power):
  • Power generation: 100% indigenous
  • Propulsion engines: Not yet indigenous (government initiatives underway)
  • Survival (Safety equipment): ~70% indigenous
  • Overall Indigenization: ~80-85% in recent projects

Other Business Verticals

  • Bailey Bridge: 100% indigenous
  • Marine Diesel Engines (collaboration): Target 55-60% indigenization
  • Deck Machinery: 90% indigenous

Indigenous Ecosystem

  • Major private players: L&T, Adani, Mahindra, Kalyani
  • MSMEs: ~17,000 involved in defense manufacturing
  • Startups: ~1,000 involved
  • GRSE Initiative: GRSE Accelerator Innovation Engineering Team (101 startups participated last year)
  • Key PSU suppliers: HAL, BEL, ECIL, Kelton

Export Strategy

  • Non-defense exports: No government approval required for friendly nations
  • Current focus: Domestic opportunities due to aggregated demand (~200+ platforms)
  • Strategy: Will consider export orders if attractive, profitable, and visible
  • Water Metro projects: Engaging with various state governments (Goa, etc.) for future RFPs

Employee Costs & Pay Commission

  • Q1 employee cost reduction due to project phase (lower contractual workers)
  • Expected increase in coming quarters with ship deliveries
  • Seventh Pay Commission expected in FY28: Anticipated 15-20% increase (already factored in projections)

Corporate Actions

  • Any corporate actions (bonus, stock split) subject to directives from Administrative Ministry and DIPAM
  • No current initiatives disclosed

Q&A Key Takeaways

  • NGC Timeline: Contract expected Q2 FY27; revenue recognition from FY28
  • Execution Momentum: Expected to continue in coming quarters based on order book composition
  • Commercial Bidding Strategy: Partnerships with other Indian shipyards and foreign collaborators for large vessels
  • Water Metro Projects: Value ~₹200-300 crore per metro; potential ~₹1,500 crore for 5 states
  • Next Gen Destroyer: RFP not expected until FY29