Garden Reach Shipbuilders & Engineers Ltd. (GRSE) delivered exceptional Q1 FY27 results, with standalone net profit jumping 43.82% year-on-year to ₹172.84 crore compared with ₹120.18 crore in Q1 FY26, as reported by CNBC TV18. Revenue from operations surged 38.53% YoY to ₹1,814.62 crore in Q1 FY27, demonstrating robust operational performance across the company's shipbuilding and engineering operations. Total income for the quarter increased to ₹1,914.2 crore from ₹1,382.4 crore a year ago, while profit before tax (PBT) rose 38.9% to ₹231.53 crore from ₹166.72 crore in the corresponding quarter last year. Earnings per share improved to ₹15.09 from ₹10.49 in the year-ago period, reflecting strong bottom-line growth.
The company faced margin pressure during Q1 FY27 due to significantly higher raw material costs. Cost of materials consumed rose sharply to ₹1,244.23 crore from ₹679.9 crore in the corresponding quarter last year, as reported by CNBC TV18. This substantial increase in raw material expenses impacted the company's profitability metrics. EBITDA grew 33.3% to ₹149.2 crore from ₹111.9 crore, but EBITDA margin compressed to 8.2% from 8.5% in Q1 FY26. Despite the margin pressure, net profit margin expanded to 9.52% from 9.17% year-on-year, indicating improved overall profitability despite cost challenges.
The company's cost structure showed mixed trends during Q1 FY27. Total expenses climbed 38.41% YoY to ₹1,682.66 crore compared with ₹1,215.70 crore in Q1 FY26, as reported by Business Standard. Cost of materials consumed stood at ₹1,244.23 crore, up 83.01% YoY, indicating higher raw material costs associated with increased production activity. However, employee benefits expense was ₹101.35 crore, down 4.34% YoY, while subcontracting charges declined 65.41% YoY to ₹81.52 crore. Purchases of products for resale also increased to ₹128.1 crore from ₹72 crore, while finance costs also declined 38.15% YoY to ₹3.76 crore during the quarter, contributing to improved overall financial efficiency.
GRSE maintained a robust financial position with improved balance sheet metrics during Q1 FY27. The debt-equity ratio remained strong at 0.014 times as of June-end, compared with 0.012 times a year ago, as reported by CNBC TV18. Net worth increased significantly to ₹2,799.7 crore from ₹2,198.8 crore, while the current ratio improved to 1.32 times from 1.18 times, indicating better liquidity management. GRSE shares responded positively to the strong quarterly results, trading 0.2% higher at ₹2,616.8 following the results announcement, as reported by CNBC TV18. The stock has shown strong performance with gains of 7% so far this year, demonstrating investor confidence in the company's growth trajectory.
