GRSE shares touched a day high of ₹2,665 on Wednesday after the defence shipbuilder reported a 43.8% jump in June quarter net profit.

GRSE posted a standalone net profit of ₹172.84 crore for the quarter, up from ₹120.18 crore a year ago. Revenue from operations climbed 38.53% to ₹1,814.62 crore, and profit before tax rose nearly 39% to ₹231.53 crore.

Earnings per share improved to ₹15.09 from ₹10.49 in the same quarter last year. Not everything moved in the company’s favour, though. Raw material costs rose sharply, with the cost of materials consumed jumping 83% to ₹1,244.23 crore.

That pushed total expenses up 38.41% to ₹1,682.66 crore. As a result, EBITDA margin actually dipped slightly to 8.2% from 8.5% a year earlier, even though EBITDA itself grew 33.3% to ₹149.2 crore.

On the other hand, subcontracting charges fell sharply, down 65.41% to ₹81.52 crore, and finance costs dropped 38.15% to ₹3.76 crore, both of which helped cushion the impact on the bottom line.

The company’s balance sheet stayed in good shape too. Its debt-equity ratio stood at just 0.014 times as of June end, only slightly higher than 0.012 times a year earlier, while net worth grew to ₹2,799.7 crore from ₹2,198.8 crore.

Net profit margin for the quarter improved to 9.52% from 9.17% previously. This quarter builds on a strong FY26, when GRSE’s annual revenue rose nearly 38% and the company delivered eight warships.

The company also has a growing commercial shipbuilding business, including an ongoing order for 12 multi-purpose vessels for a German client.

GRSE shares closed the day at ₹2,626.10, up 0.59% or ₹15.40, on the NSE.

Tired of missing hot stocks? Tradz by EquityPandit provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!