Garden Reach Shares Cruise Ahead as Q4 Earnings Make a Splash

Shares of Garden Reach Shipbuilders sailed 15% higher to its intraday high of Rs 2,200 on the National Stock Exchange today after the company posted a robust March-quarter earnings. The public sector company’s net profit for the quarter under review more than doubled on year, primarily on the back of a 62% on-year growth in revenue for the period.

Inventory related gains along with a fall in cost of products purchased for resale also aided the company’s earnings for the fourth quarter of the previous financial year, as the revenue growth was completely offset by a steep rise in input costs for the company. Garden Reach’s input costs for the period shot up 124% on year.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) also doubled on year to Rs 335 crore in the first quarter of 2025. For FY25, Garden Reach’s EBITDA registered a 42% growth over the previous year’s figure.

For the full financial year, the company has recorded an over 41% on-year growth in revenue, while a 48% rise in net for the period. Its net profit margin also improved 45 basis points in FY25 to 10.39%. The board has also approved a final dividend of Rs 4.90 per share, which is in addition to the interim dividend of Rs 8.95 per share paid for FY25.

“With our strong order book, production maturity of the ongoing projects and order visibility including in the commercial shipbuilding segment, I am confident of even better performance during the current financial year,” Cmde Hari PR, IN (Retd), chairman and managing director of Garden Reach said.

The stock has given impressive returns as share price of the company more than doubled in last one year, while it climbed 33% on year-to-date basis. The stock is currently 141% higher than its 52-week low mark, but still 24% lower than its 52-week high level.