GRSE Q2 results: Profit rises 12% YoY to ₹172 crore despite material cost overhang; stock jumps over 3%

Garden Reach Shipbuilders & Engineers (GRSE) posted its July to September quarter results for the financial year 2026-27 on Wednesday, November 11, in which the company recorded a 12% surge in net profits despite the material cost overhang increasing overall expenses in the period.

In its latest NSE filings, GRSE disclosed that the company recorded a 12% year-on-year (YoY) increase in its net profit after tax (PAT) to ₹172 crore in the September quarter of FY27, in comparison to ₹154 crore in the corresponding quarter a year ago.

The shipbuilding company’s revenue from core operations advanced 9% YoY to ₹1,827 crore in the second quarter of FY27, from ₹1,677 crore in the same quarter a year earlier, as per the exchange filing.

Despite the increase in overall expenses in the quarter under review as a result of the raw material cost overhang, GRSE posted profits due to the company’s increase in overall revenues for the period.

Data showed that Garden Reach Shipbuilders’ overall expenses in Q2 FY27 surged 7.6% to ₹1,654 crore in the September quarter, compared to ₹1,537 crore in the same period a year earlier.

The financial statements also showed that the overall raw material costs increased 60.3% YoY to ₹1,087 crore in the period under review, from ₹677.86 crore in the same quarter of the previous financial year.

Investors reacted positively to the Q2 earnings announcement, powering the buying momentum during the trading session on November 11.

NSE data showed that GRSE shares surged 3.2% to hit an intraday high of ₹2,270 apiece on Wednesday’s market after the company’s Q2 earnings release, in comparison to ₹2,198.10 apiece at the previous equity market close.

GRSE’s margin gains

In the Q2 results, GRSE’s operating profit or earnings before interest, tax, depreciation, and amortisation (EBITDA), which excludes other income, expanded 25% to ₹196 crore in Q2 FY27, from ₹156 crore in Q2 FY26, as per the exchange filings.

The shipbuilding company’s EBITDA margins increased 140 basis points to 10.70% during the September quarter, in comparison to 9.30% levels in the corresponding quarter a year earlier.

The data also showed that the net profit margins gained 30 basis points to 9.47% in the quarter under review, from earlier 9.17% levels in the same period a year earlier.

Stock up 8% in a month

After Wednesday’s surge, NSE data showed that Garden Reach Shipbuilders’ shares have delivered more than 8% returns to investors in the last one-month period and have gained 3.2% in the last five trading sessions.

However, the stock has lost 9.3% of its value year-to-date (YTD) and has declined 20.5% in the past one year.

The exchange data also showed that GRSE shares have delivered more than 771% returns on their investment in the last five years, and have gained 186% in the last three years.

The company’s market capitalisation (m-cap) was at ₹25,492 crore as of the stock market close on Wednesday, November 11, 2026.