GRSE shares tumble over 12% in 5 sessions; analysts flag key support test

Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) closed 3.14 per cent lower at Rs 2,470.50 on Friday, extending their decline to 12.37 per cent over the past five trading sessions.

For the July–September quarter (Q2 FY26), the defence PSU reported a 57 per cent year-on-year (YoY) rise in profit after tax (PAT) to Rs 154 crore, compared with Rs 98 crore in the same quarter last year. Earnings per share (EPS) rose to Rs 13.43 from Rs 8.54 in Q2 FY25. Total income increased 42 per cent YoY to Rs 1,746 crore, up from Rs 1,228 crore, while revenue from operations climbed 45 per cent to Rs 1,677 crore from Rs 1,153 crore in the corresponding period.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the company's Q2 results were decent and noted that the stock has been in a consolidation phase for the medium to short term. He added that long-term investors may accumulate the stock on declines, citing strong prospects for the shipbuilding and defence segments.

From a technical standpoint, analysts flagged the Rs 2,450–2,451 zone as a key support area. Sebi-registered analyst AR Ramachandran said the stock remains bearish on daily charts, with strong resistance placed at Rs 2,589. He added that a daily close below Rs 2,451 could open the door for a further decline towards Rs 2,330 in the near term.

Ravi Singh, Chief Research Officer at Mastertrust, said investors can consider buying on dips, while highlighting Rs 2,450 as an important support level.

GRSE operates under the administrative control of the Ministry of Defence and is a key warship builder for the Indian Navy. As of September 2025, the government holds a 74.50 per cent stake in the company.