Backyard Attain Shipbuilders & Engineers Ltd – Premier Indian Shipbuilder
Established in 1934 and headquartered in Kolkata, Backyard Attain Shipbuilders & Engineers Ltd. (GRSE) is considered one of India’s main shipbuilding corporations, working below the executive management of the Ministry of Defence. The corporate performs a significant function in bolstering the Indian Navy and Coast Guard by delivering a variety of frontline warships, quick patrol vessels, touchdown crafts, and extra. GRSE has the capability to construct as much as 24 ships concurrently. Along with shipbuilding, the corporate has diversified into areas reminiscent of transportable metal bridges, marine diesel engine overhauls and meeting, in addition to the manufacturing of marine pumps and deck equipment.
Merchandise and Providers
The corporate’s various product portfolio ranges from complicated naval warships to cutting-edge weapon programs, encompassing industrial vessels, superior deck equipment, marine diesel engines, naval floor weapons and, Bailey-type transportable metal bridges.
Subsidiaries: As of FY25, the corporate doesn’t have any subsidiary/affiliate firm.
Funding Rationale
- Sturdy order pipeline – GRSE boasts a strong order guide of Rs.21,700 crore as of June 30, 2025, comprising 10 tasks throughout 40 marine platforms. The corporate has demonstrated robust execution capabilities, having delivered the primary P-17A frigate forward of schedule in July 2025, with the remaining two ships progressing effectively and anticipated to be delivered by April and August 2026, respectively. A number of different key tasks are underway, together with Anti-Submarine Shallow WaterCrafts (7 ships), Survey Vessels (Massive), Subsequent-Technology Offshore Patrol Vessels, multipurpose vessels for a German consumer, and analysis vessels for DRDO and the Ministry of Earth Sciences. It has additionally secured a contract to construct two coastal analysis vessels for the Geological Survey of India and has been declared L1 within the prestigious Subsequent-Technology Corvette challenge. The corporate continues to assist indigenization, having efficiently accomplished trials of India’s first indigenous 30mm naval floor gun onboard a GRSE-built ship. As well as, the corporate is diversifying into inland and coastal transport with 13 hybrid ferries for the West Bengal authorities. Venture execution stays on observe, with a number of key deliveries anticipated by means of FY26 – FY29.
- Strategic enlargement plans – The corporate is actively pursuing strategic enlargement, with plans to determine a greenfield shipbuilding facility, along with buying a brand new dry dock from the Syama Prasad Mookerjee Port to strengthen its operational footprint throughout the metropolis. The proposed greenfield facility, at present within the land finalization stage (approx. 30+ acres), is aimed toward catering to each defence and non-defence sectors. In parallel, the corporate is making vital strides in superior maritime applied sciences. GRSE has developed unmanned underwater and floor platforms, each of which have accomplished profitable prototype trials and at the moment are being refined based mostly on suggestions from DRDO and different stakeholders. These platforms are anticipated to cater to future demand from the Navy, Coast Guard, and analysis establishments. The corporate can be specializing in inexperienced vessels, having already delivered India’s largest and quickest 150-passenger hybrid ferry, now working on the Hooghly River, and secured an order for 13 further hybrid ferries. Moreover, GRSE continues to broaden its proprietary Bailey Bridge portfolio, supplying key infrastructure to the Indian Military, BRO, and NHIDCL. These efforts underline GRSE’s long-term imaginative and prescient to diversify its product base, improve capability, and drive innovation in next-generation maritime and defence applied sciences.
- Q1FY26 – The corporate reported a income of Rs.1,310 crore marking a rise of 30% in comparison with the Rs.1,010 crore income of Q1FY25. Working revenue stood at Rs.112 crore in opposition to the Rs.56 crore of Q1FY25, a surge by 100% YoY. The web revenue stood at Rs.120 crore which is a progress of 38% as in comparison with the Rs.87 crores of identical interval within the earlier 12 months.
- FY25 – The corporate generated income of Rs.5,076 crore throughout FY25, a rise of 41% in comparison with the FY24 income. EBITDA was at Rs.422 crore, up by 80% YoY. The corporate reported web revenue of Rs.527 crore, a rise of 48% YoY.
- Monetary Efficiency – The corporate has generated income and web revenue CAGR of 42% every over a interval of three years (FY23-25). Common 3-year ROE & ROCE is round 23% and 28% for FY23-25 interval. The corporate has robust stability sheet with zero debt in its capital construction.
Business
India is among the strongest navy forces on this planet and the business holds a spot of strategic significance for the Indian authorities. The nation’s defence manufacturing business is quickly rising, pushed by substantial authorities investments, growing exports, and insurance policies aimed toward fostering self-reliance and technological innovation. As a part of the ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative, the federal government has prioritized the Defence and Aerospace sectors, specializing in constructing home manufacturing capabilities supported by a powerful analysis and improvement framework. To modernize its navy and reduce dependence on international defence imports, the federal government has launched a number of initiatives to advertise ‘Make in India’ efforts by means of coverage backing. Moreover, India has set an bold purpose of attaining US$ 6.02 billion (Rs. 50,000 crore) in annual defence exports by 2028-29.
Progress Drivers
- In FY26, the Ministry of Defence (MoD) was allotted a complete Finances of Rs. 6.81 lakh crore (US$ 78.7 billion), which is 9.5% YoY enhance from FY25 price range.
- Rising demand for defence manufacturing given the rising considerations of nationwide safety.
- Provision for 100% Overseas Direct Funding (FDI) by means of Authorities route and 74% by means of Automated route into the defence sector.
Peer Evaluation
Opponents: Cochin Shipyard Ltd, Mazagon Dock Shipbuilders Ltd, and so on.
In comparison with its friends, GRSE has delivered steady returns on invested capital, supported by robust gross sales progress and an inexpensive valuation.
Outlook
GRSE presents a powerful funding case backed by a strong Rs.21,700 crore order guide, constant execution, and alignment with India’s defence indigenization drive. The corporate has a packed supply schedule for FY26-FY29, together with key tasks like P-17A frigates, survey vessels, and anti-submarine crafts. To assist future progress, GRSE plans to extend its shipbuilding capability from 24 to 32 vessels by the top of 2026 by means of a greenfield shipyard and extra dry dock acquisitions. With steady returns on capital, rising export alternatives, and income visibility, GRSE stays well-positioned to ship sustained progress in India’s increasing defence and maritime ecosystem.
Valuation
We imagine GRSE offers a compelling funding alternative given its function within the defence infrastructure of the nation. We advocate a BUY score within the inventory with the goal worth (TP) of Rs.3,097, 40x FY27E EPS. We additionally encourage sustaining a stop-loss at 20% from the entry worth to handle potential draw back threat successfully.
SWOT Evaluation
Disclaimer: Investments within the securities market are topic to market dangers, learn all associated paperwork rigorously earlier than investing. Securities quoted listed below are exemplary, not recommendatory. Please seek the advice of your monetary advisor earlier than investing. Please observe that we don’t assure any assured returns for the securities quoted right here.
Analysis disclaimer: Funding within the securities market is topic to market dangers. Learn all of the associated paperwork rigorously earlier than investing. Registration granted by SEBI, and certification from NISM on no account assure the efficiency of the middleman or present any assurance of returns to traders.
For extra particulars, please learn the disclaimer.
Different articles you could like
Publish Views:
37
