Garden Reach Shipbuilders & Engineers Ltd (GRSE), a Navratna Defence Public Sector Undertaking under the Ministry of Defence, has secured a ₹1,032 crore contract from Oil and Natural Gas Corporation (ONGC) for the construction of four platform supply vessels (PSVs), as reported by The Economic Times. The state-run defence company received the notification of award (NoA) from ONGC on July 30, 2026, for the design, construction and delivery of the vessels. This contract represents a strategic diversification for the shipyard, which has historically focused on building warships for the Indian Navy and Coast Guard, marking a significant expansion of GRSE's footprint in the commercial and offshore shipbuilding sector.
The vessels will be designed and built in accordance with the rules of the Indian Register of Shipping (IRS) and will incorporate advanced technologies to support offshore exploration and production activities. According to The Economic Times, the vessels feature an overall length of about 80 metres, a beam of 20 metres, a deadweight capacity of 3,000 tonnes, an endurance of 45+3 days, and a clear deck area of about 650 square metres. The vessels will be capable of carrying out a wide range of offshore logistics and support missions associated with exploration and production activities, contributing substantially to India's offshore energy infrastructure while further strengthening the nation's indigenous shipbuilding capabilities.
A key highlight of the vessels is the incorporation of an advanced hybrid propulsion architecture, featuring electrically driven azimuth thrusters and a lithium-ion battery energy storage system, as reported by The Economic Times. The battery system will support peak load management, spinning reserve, dynamic positioning operations and emergency response functions, thereby enhancing operational efficiency and reducing environmental impact. This technology is expected to improve the operational efficiency of the vessels while helping reduce their environmental impact during offshore operations, distinguishing these vessels from traditional PSVs and supporting GRSE's position as a technologically advanced shipbuilder.
GRSE has also secured a ₹37.94 crore Letter of Intent (LoI) from Syama Prasad Mookerjee Port Authority (SMPA) for the construction of an electric battery-powered harbour tug, as reported by CNBC TV18. The order, received on August 3, 2026, is for the construction of one 15-ton bollard pull electric battery propulsion tug, along with the installation of shore charging infrastructure for Kolkata Dock System (KDS). This contract further demonstrates GRSE's expanding capabilities in electric maritime technology and its growing presence in the port infrastructure sector.
The contract wins come after GRSE reported robust financial performance for the quarter ended June 2026, with both revenue and profit posting strong year-on-year growth. According to exchange filings, the defence PSU reported a 43.8% year-on-year rise in consolidated net profit to ₹172.8 crore for the June quarter, compared with ₹120.2 crore in the corresponding period last year. Revenue from operations climbed 38.5% to ₹1,814.6 crore from ₹1,309.9 crore, while EBITDA rose 33.3% year-on-year to ₹149.2 crore. However, the EBITDA margin narrowed slightly to 8.2% compared with 8.5% a year earlier, reflecting higher input costs. Total income increased to ₹1,914.2 crore from ₹1,382.4 crore, while profit before tax rose 38.9% to ₹231.5 crore. Earnings per share improved to ₹15.09 from ₹10.49 in the year-ago quarter, though the company reported a sharp increase in raw material costs with the cost of materials consumed rising to ₹1,244.2 crore from ₹679.9 crore a year earlier.
