GRSE Q2 FY27 Results Analysis: PAT Jumps 26%, EBITDA Margins Expand
Garden Reach Shipbuilders & Engineers Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,826.69 Cr (+8.90% YoY) and PAT growth of +11.83% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 11, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,826.69 Cr (+8.90% YoY) |
| PAT (Q2) | Rs. 171.98 Cr (+11.83% YoY) |
| EBITDA margin | 13.93% (+53 bps YoY) |
| EPS (Q2) | Rs. 15.01 (+11.76% YoY) |
Quarter Snapshot
GRSE delivered H1 FY27 revenue growth of 21.89% YoY and PAT growth of 25.86% (16.2% normalized after a Rs.38.94 crore write-back), with EBITDA margins expanding YoY on both computation bases, consistent with management's 'similar margins' and 'peak revenue year' guidance. The fortress net-cash balance sheet (Rs.3,246 crore cash, 0.013x debt-equity) and Rs.5,566 crore approved capex support the long-term pipeline, while the NGC contract signing remains the pending catalyst. Key watch items are negative H1 operating cash flow of Rs.354.69 crore from advance-buffer drawdown and the halving of receivables turnover to 6.27x as MoD realisation cycles stretch.
Key Investment Insights
Key Positives
- H1 FY27 revenue grew 21.89% YoY to Rs.3,641.31 crore; Q2 revenue grew 8.90% YoY to Rs.1,826.69 crore
- H1 PAT grew 25.86% YoY to Rs.344.81 crore; normalized H1 PAT grew 16.2% YoY after stripping the Rs.38.94 crore write-back
- Q2 EBITDA margin expanded to 13.93% incl-other-income (10.70% ex-other-income) from 13.40%/9.31% a year ago, with other income down 14.2% YoY
- Net worth rose 26.17% YoY to Rs.2,896.74 crore; debt-equity 0.013x with Rs.3,246.20 crore cash and bank balances
- Inventories fell Rs.1,293.30 crore from March 2026 (−35.5% YoY) as platforms were delivered; inventory turnover improved to 2.42x from 1.61x
- Rs.1,115.03 crore of order inflows announced post-Q1 (ONGC PSVs Rs.1,032.07 crore); Rs.5,566 crore capex approved for Raichak greenfield and brownfield expansion
- Current ratio improved to 1.36x from 1.19x; DSCR 26.04x and interest-service cover 38.64x
Risk Factors
- H1 operating cash flow was negative Rs.354.69 crore (CFO/PAT −1.03x), with customer advances draining Rs.1,450.33 crore faster than receivables were collected
- Trade receivables grew 41.48% YoY vs 8.90% revenue growth; Reg 52 receivables turnover halved to 6.27x from 11.50x as MoD realisation cycles stretch
- H1 reported PAT includes a Rs.38.94 crore one-time liability write-back (9.03% of reported PAT); quarter-level split not disclosed
- Revenue growth decelerated to +8.90% YoY in Q2 from +38.5% in Q1 FY27; QoQ revenue was flat at +0.67%
- Materials consumed rose 60.37% YoY to 59.51% of revenue from 40.41% a year ago, reflecting input-cost and build-mix shift
- Finance costs more than doubled YoY to Rs.8.54 crore, though trivial at 0.47% of revenue
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.