Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped over 16% in early trade on April 29, 2026, after the company reported robust financial results for the fourth quarter of the fiscal year 2025-26 and announced a dividend. The defence stock opened at Rs 1,850 on the BSE, up from the previous close of Rs 1,590, and touched an intraday high of Rs 1,850, reflecting strong investor sentiment.
GRSE Q4 Results Highlights
The Kolkata-based shipbuilding company reported a 45% year-on-year increase in net profit for Q4 FY26, reaching Rs 210 crore, compared to Rs 145 crore in the same quarter last year. Revenue from operations grew by 28% to Rs 1,200 crore, driven by higher execution of defence orders. The company also reported an EBITDA margin improvement of 12.5% versus 10.8% in Q4 FY25.
Dividend Announcement
GRSE's board recommended a final dividend of Rs 8 per equity share for the financial year 2025-26. The dividend is subject to shareholder approval at the upcoming annual general meeting. The record date for the dividend has been fixed as May 10, 2026. This announcement came as a positive surprise to the market, as the company had previously declared an interim dividend of Rs 4 per share.
Market Reaction and Analyst Views
The stock's sharp rally was accompanied by heavy trading volumes, with over 2.5 lakh shares changing hands on the BSE within the first hour of trade. Analysts attribute the surge to the strong operational performance and the dividend announcement. According to brokerage firm Motilal Oswal, GRSE remains a key beneficiary of the government's focus on indigenization of defence manufacturing. The company has a strong order book of Rs 25,000 crore, providing revenue visibility for the next 3-4 years.
Technical Outlook
From a technical perspective, the stock has broken out of its consolidation range of Rs 1,400-1,600. The Relative Strength Index (RSI) is at 72, indicating overbought conditions, but momentum remains strong. Support levels are seen at Rs 1,700 and Rs 1,600, while resistance is at Rs 1,950.
Company Background
GRSE is a leading shipbuilding company under the Ministry of Defence, Government of India. It specializes in building warships and other vessels for the Indian Navy and Coast Guard. The company also has a growing portfolio in commercial ship repair and engineering services. In recent years, GRSE has diversified into manufacturing of advanced naval systems and components.
Investors should note that the stock has gained over 60% in the past one year, outperforming the broader market. However, given the run-up, some analysts advise caution and recommend booking partial profits at current levels. The company's fundamentals remain strong, with a price-to-earnings (P/E) ratio of 28.5, which is reasonable compared to peers.
Overall, the GRSE share price movement reflects the positive sentiment around defence stocks in India, driven by the government's Make in India initiative and increased defence spending. The Q4 results and dividend announcement have further boosted investor confidence.
