Garden Reach Shipbuilders Expects Order Book to Cross ₹40,000 Crore by FY26

Garden Reach Shipbuilders Ltd., a state-run shipbuilding company, anticipates its order book will surpass ₹40,000 crore by the end of the 2026 financial year, according to Chairman and Managing Director PR Hari.

In an exclusive interview with CNBC-TV18, Hari stated that the company’s current order book stands at ₹23,877 crore, which he described as “reasonably healthy.” He added that they aim to maintain a Compound Annual Growth Rate (CAGR) of 25% moving forward.

“We have been maintaining a 25% CAGR. Our current order book is reasonably healthy, and I had previously indicated that the order book will be substantial by the end of FY26. Therefore, we expect to maintain a similar CAGR,” he said.

New Contracts Expected

Hari also mentioned that Garden Reach expects to sign two additional contracts in the current financial year, with 95% of the current order book coming from the shipbuilding sector.

“The orders we currently have are at a stage where revenue recognition is progressing well. Additionally, the new orders we are expecting will start generating revenue from FY27 or FY28,” he explained.

For the December quarter, Garden Reach reported a 34% year-on-year growth in revenue. Its Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 55%, and its margins improved by 60 basis points compared to the previous year.

Anticipation for Strong Performance

“We expect to maintain similar margins (around 8%). This is because, while shipbuilding is a highly competitive sector with generally low margins, we have shifted towards the export of commercial ships and ship repairs, which offer relatively higher margins. As a result, I believe we will be able to sustain profit margins above 8% in the coming years,” the CMD added.

The company also expressed confidence in a strong performance for the March quarter, with expectations of more orders to further strengthen its order book.

Currently, exports account for 4.5% of Garden Reach’s total revenue, and the management aims to increase this figure to 10% over time.

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