GRSE share price: Garden Reach a Buy post Q1 results? Why Antique cut target for defence PSU
GRSE stock outlook: Antique said the key near-term trigger for the stock remains the finalisation of next-generation corvette (NGC) order worth over Rs 33,000 crore.
- Jul 30, 2026,
- Updated Jul 30, 2026 12:47 PM IST
Antique Stock Broking has cut its target price on Garden Reach Shipbuilders & Engineers Ltd (GRSE) by 5 per cent to Rs 2,990 from Rs 3,141 earlier, as slower-than-expected finalization of key defence orders has resulted in a delay in revenue recognition. The brokearge, however, kept its 'Buy' rating intact for the defence PSU post in line Q1 results.
Antique said the key near-term trigger for the stock remains the finalisation of next-generation corvette (NGC) order worth over Rs 33,000 crore. Beyond defence shipbuilding, the outlook for commercial shipbuilding has improved meaningfully, it said noting that the company aims to expand its annual shipbuilding capacity to 32 ships and is also scouting for a suitable location for a greenfield unit, anticipating a strong long-term growth outlook.
For the quarter, GRSE's revenue, Ebitda and PAT grew year-on-year (YoY) 38.5 per cent, 33.3 per cent and 43.8 per cent, respectively. Antique said revenue growth was led by the progress on the third Frigate under 17A programme, which is in advanced stages of delivery. Additionally, delivery of ASW Corvettes (four pending) has also gained momentum. As a result, the revenue booking is likely to be strong in FY27, Antique said.
That said, "a slower-than-expected finalisation of key defence orders has resulted in a delay in revenue recognition, prompting a marginal reduction in our FY27-FY28 earnings estimates. Consequently, we revise our target price to Rs 2,990 (earlier Rs 3,141), based on an unchanged core target P/E multiple of 40 times 1HFY29E earnings (Earlier 40x FY28E). Maintain BUY," it said.
For Q1, Antique said GRSE's revenue growth was driven by execution of P17A Frigate and Anti-submarine warfare corvettes. Ebitda margin declined 30 basis points YoY to 8.2 per cent, primarily due to higher material costs.
"We expect GRSE’s order book to increase to Rs 75,600 crore by FY28E, nearly 4.9 times its FY26 order book, providing robust long-term revenue visibility and supporting earnings growth. Backed by a strong execution pipeline, a healthy defence order outlook and improving opportunities in commercial shipbuilding, we maintain our BUY rating," Antique said.
Antique Stock Broking has cut its target price on Garden Reach Shipbuilders & Engineers Ltd (GRSE) by 5 per cent to Rs 2,990 from Rs 3,141 earlier, as slower-than-expected finalization of key defence orders has resulted in a delay in revenue recognition. The brokearge, however, kept its 'Buy' rating intact for the defence PSU post in line Q1 results.
Antique said the key near-term trigger for the stock remains the finalisation of next-generation corvette (NGC) order worth over Rs 33,000 crore. Beyond defence shipbuilding, the outlook for commercial shipbuilding has improved meaningfully, it said noting that the company aims to expand its annual shipbuilding capacity to 32 ships and is also scouting for a suitable location for a greenfield unit, anticipating a strong long-term growth outlook.
For the quarter, GRSE's revenue, Ebitda and PAT grew year-on-year (YoY) 38.5 per cent, 33.3 per cent and 43.8 per cent, respectively. Antique said revenue growth was led by the progress on the third Frigate under 17A programme, which is in advanced stages of delivery. Additionally, delivery of ASW Corvettes (four pending) has also gained momentum. As a result, the revenue booking is likely to be strong in FY27, Antique said.
That said, "a slower-than-expected finalisation of key defence orders has resulted in a delay in revenue recognition, prompting a marginal reduction in our FY27-FY28 earnings estimates. Consequently, we revise our target price to Rs 2,990 (earlier Rs 3,141), based on an unchanged core target P/E multiple of 40 times 1HFY29E earnings (Earlier 40x FY28E). Maintain BUY," it said.
For Q1, Antique said GRSE's revenue growth was driven by execution of P17A Frigate and Anti-submarine warfare corvettes. Ebitda margin declined 30 basis points YoY to 8.2 per cent, primarily due to higher material costs.
"We expect GRSE’s order book to increase to Rs 75,600 crore by FY28E, nearly 4.9 times its FY26 order book, providing robust long-term revenue visibility and supporting earnings growth. Backed by a strong execution pipeline, a healthy defence order outlook and improving opportunities in commercial shipbuilding, we maintain our BUY rating," Antique said.