Garden Reach Shipbuilders Confident On Growth On Strong Order Book, Visible Demand

Garden Reach Shipbuilders and Engineers Ltd. received a Rs 123-crore order from the government, accounting for up to 0.8% of the size of the company's order book.

With the current order book holding up to 10 projects worth Rs 23,877 crore, the management is confident that the delivery will be ahead of time. The company is moving in the right direction, according to Commodore PR Hari (Retd), the chairman and managing director of Garden Reach.

Exports account for more than 4.5% of the company's order book, which is further diversified with specialised research vessels. There are a few more promising projects in the pipeline, according to management.

"Two more research projects in the coming years, the conservative estimates for two years stands at Rs 1,70,000 crore with 210 platforms," said Hari. There are also three high-value projects, ranging from Rs 32,000 crore to Rs 70,000 crore. These projects are starters that will further accelerate the number of projects in the coming years as well, he said.

"The goal for order book for the end of financial year 2026 is Rs 40,000 crore. The exports and ship repair has higher margins and we are focusing more on these for the order book. Earlier, we were not as aggressive in ship repair, but now we have a dedicated ship-repair vertical," he said. The company intends to bring a three-fold increase in this specific segment.

With a longer gestation period, the time for revenue recognition is longer in the industry. Which means that the time taken from the placement of an order to the delivery is much longer compared to other industries.

The management estimates about 25% CAGR over the next five years. The company will also focus on partnerships with firms across India, as it intends to cross 30 ship projects in financial year 2026.

The growing demand for ships has definitely come into focus as geo-political tensions escalate. Hari is confident of stable incoming demand.

"We know our capacity is good. More global orders will come in, considering geo-political situations. Clear visibility is there, we just have to ramp-up our capacity according to the requirement," he said.