Shares of Garden Reach Shipbuilders & Engineers surged as much as 14 per cent in early morning trade today after the company reported strong Q4 results and announced a dividend.
The stock opened with a gap-up of 4 per cent at ₹3,100 on the National Stock Exchange (NSE) and climbed to a high of ₹3,275 within minutes of trading. As of 9:35 AM, Garden Reach shares were trading firmly in the green at ₹3,278, with around 4.2 million shares changing hands. In comparison, the benchmark Nifty 50 was up 0.4 per cent.
Garden Reach also emerged as the top gainer from the Nifty Smallcap 100 index, where it is a constituent.
Over the past week, the stock has rallied 17 per cent and has spurted 60 per cent in last month, significantly outperforming the frontline Nifty index, which has declined 1.1 per cent in a week and gained 5.6 per cent in the same one-month period.
Garden Reach Q4 results Garden Reach Shipbuilders & Engineers Ltd (GRSE) is a shipbuilding company, under the Ministry of Defence. In the March quarter (Q4FY26), Garden Reach reported a net profit of ₹303.1 crore, up 24 per cent Y-o-Y. The company had earned a net profit of ₹244.2 crore in the same quarter a year ago.
The firm's revenue grew by 29 per cent Y-o-Y to ₹2,119.2 crore, compared with from ₹1,642 crore in the corresponding quarter in the last fiscal.
For the entire fiscal year 2026 (FY26), the company earned a profit of ₹747.9 crore, up from ₹527.4 crore profit minted in the last fiscal (FY25). Its revenue in the reporting fiscal year stood at ₹7,002 crore as against FY25's topline of ₹5,075 crore. ICICI Securities has said that the PSU's operational performance remained strong, with FY26 revenue (up 38 per cent Y-o-Y) exceeding provisional trends and supported by healthy execution across core shipbuilding programmes. Margin expansion was driven by operating leverage, indicating improved cost absorption at higher execution levels. While implied Q4FY26 execution shows moderation compared to strong 9MFY26 growth, the company has largely delivered within/above its guided growth trajectory, the brokerage said. The order backlog, the brokerage noted, remains healthy at ₹17,000 crore, 2.4x FY26 revenue, with final phases of P-17A frigates and ASW-SWC contracts (70 per cent of the order book) expected to support near-term revenue visibility. However, sustaining growth beyond FY27E will depend on timely order inflows, particularly in next-generation corvettes, patrol vessels and survey ships.
Garden Reach dividend
Along with the financial results, the board of Garden Reach also recommended a final dividend of ₹6.70 per equity share for the financial year 2025-26, subject to the approval of the shareholders at the ensuing AGM. The final dividend would be paid within 30 days from the date of its declaration at the 110th AGM.
Garden Reach stock: Target price
Rajesh Palviya, senior vice president, head of research at Axis Securities, said that Garden Reach is showing strong buying momentum and is moving closer to its all-time high levels. It has recently broken out of a 6–7 month consolidation range on the monthly chart, which is a positive technical signal.
As long as the stock holds above ₹3,100, the near-term view will remain positive, with an upside target of ₹3,600, the analyst said. "The long-term chart suggests the upward move could continue further." ================= Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.