Garden Reach Shipbuilders & Engineers Ltd (GRSE) Q1 FY27 Results Analysis: PAT Surges 44%, EBITDA Margin Compresses 32 bps

Garden Reach Shipbuilders & Engineers Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 1,814.62 Cr (+38.50% YoY) and PAT growth of +43.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

GRSE delivered strong YoY revenue and PAT growth of 38.5% and 43.8% respectively, with a robust balance sheet and improved liquidity. However, a sharp increase in material costs compressed EBITDA margins by 32 bps, and working capital stress is evident from declining receivables turnover. The company's high reliance on other income (57.6% of PBT) is a notable concern.

Key Investment Insights

Key Positives

• Revenue grew 38.5% YoY to Rs.1,814.62 Cr
• PAT grew 43.8% YoY to Rs.172.84 Cr
• Net worth expanded 27.3% YoY to Rs.2,799.66 Cr
• Current ratio improved from 1.18x to 1.32x

Risk Factors

• Material cost as a share of revenue surged 1,667 bps YoY to 68.57%
• EBITDA margin compressed 32 bps YoY to 8.22%
• Trade receivables turnover declined sharply from 17.91x to 6.27x, indicating working capital strain
• Other income contributed 57.6% of PBT, highlighting reliance on non-operating income