Shares of Garden Reach Shipbuilders & Engineers Ltd are likely to remain in focus after the company said the Rs 33,000 crore Next Generation Corvette programme could move to contract signing in the current quarter. The company said price negotiations for the project have been completed and discussions are now at the final contract stage.
"Our current assessment is that the contract could be signed during the current quarter," Chairman and Managing Director PR Hari said during the company's earnings call on Tuesday.
The update comes weeks after the company reported record quarterly and annual earnings for FY26. Investors have been tracking the timeline for the Navy project after management had earlier expected closure by the end of March.
The proposed programme is among the largest upcoming naval contracts for domestic shipyards and is expected to support long-term order visibility for the company.
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Revenue Timeline
GRSE said revenue recognition from the project is expected to begin only in the second half of FY28 because shipbuilding projects follow phased execution schedules. "We expect the booking to happen during the latter half of the next financial year, that is FY28," Hari said.
The company said major revenue contribution from the programme is expected from FY29 onwards as construction activity scales up. GRSE's current order book stands at Rs 15,324 crore and includes 39 platforms across defence and commercial projects.
The company said the order backlog has dropped below Rs 20,000 crore for the first time in five years due to faster execution and deliveries. During FY26, the shipbuilder delivered eight warships to the Indian Navy, including three vessels on the same day.
"FY26 marks a landmark year for GRSE wherein our robust physical performance has been translated into strong financial results," Hari said in the company's earnings statement. "We intend maintaining the tempo in the years ahead through capability enhancement, new technology adoption and calibrated business diversification."
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