Q1 26/27

Jul 29, 2026

Quarterly report

Summary

Q1 FY 2027 revenue rose 39% YoY and PAT increased 44%, while execution continued across a 44-platform order book. Navratna status and planned capacity expansion support a large defense and commercial pipeline.

Ladies and gentlemen, good afternoon and welcome to the conference call of Garden Reach Shipbuilders & Engineers Limited, arranged by Concept Investor Relations to discuss its Q1 FY 2027 results. We have with us today management representatives, Commodore P. R. Hari, Indian Navy, retired, Chairman and Managing Director, Shri Niranjan Mukund Bhalerao, Director, Finance and CFO, Srimati Aparajita Ghosh, GM Finance, Shri Sandeep Mahapatra, Company Secretary and Compliance Officer. Please note, this conference will be recorded. I would now like to hand over the floor to Commodore P. R. Hari, Chairman and Managing Director. Thank you, and over to you, sir. Thank you. Good afternoon, ladies and gentlemen, and a warm welcome to each one of you to the conference call of Garden Reach Shipbuilders & Engineers to discuss the results for the quarter ended 30th June 2026. With me here are Shri Niranjan Bhalerao, Director of Finance and Chief Finance Officer, Srimati Aparajita Ghosh, General Manager Finance, and Shri Sandeep Mahapatra, the Company Secretary and Compliance Officer. During the next 15-20 minutes, I shall brief you on our financial and physical performance and also touch upon our current order book, the status of the ongoing projects and the execution plan, a glimpse of our future outlook, and the expansion plans of the company. Quarter one financially at FY 2027 has again been an interesting quarter, and we have recorded a strong set of numbers. Our total income stood at INR 1,914 crores, recording a year-on-year growth of 38% when compared to Q1 FY 2026 results, and the revenue from operation has increased from INR 1,310 crores to INR 1,815 crores, recording a growth of 39%. The profit after tax has moved up by 44%, from INR 120 crores to INR 173 crores during this period. The earnings per share has increased by 44%, from INR 10.49 to INR 15.09. Now, coming to the operational highlights. One of the defining milestones for GRSE during the year was being accorded the Navratna status by the Government of India, Department of Public Enterprises. This was accorded to us on 19th of June of 2026, and this prestigious recognition marks a significant milestone in the company's journey and reflects its constant and consistent financial and operational excellence over the years. Conferment of Navratna status comes at a pivotal time, as the shipyard is actively pursuing an ambitious expansion plan. The company is undertaking both brownfield and greenfield capacity expansion initiatives to strengthen our shipbuilding capabilities, support future growth, and enhance our ability to execute larger and more complex projects. GRSE-built ships, three ships, INS Dunagiri, that is the second P17A Alpha stealth frigate, INS Sanshodhak, the last of the four survey vessels large, and INS Agray, the fourth ship of the eight-ship anti-submarine warfare craft project, were commissioned into the Indian Navy by the Honorable Prime Minister of India, Shri Narendra Modi, at Kolkata on 21st June 2026. GRSE has also received a notification for award for two projects, one from the Oil and Natural Gas Corporation, ONGC, for construction of four platform support vessels, and from the Syama Prasad Mookerjee Port Kolkata for a fully electric tug. Achieving L1 status in two projects of varying nature, such as a platform support vessel and an electric tug, reflects our competitive positioning and reinforces our capabilities in these specialized fields. Our current order book stands at INR 13,596 crores. This is- Really sorry to interrupt, sir. Your audio is getting chipped. Can you hear me now? This is much better. Yes, sir, please go ahead. Yeah. Can you hear me loud and clear now? Yes, sir. This is loud and clear. Okay. I was talking about the order book. The current order book stands at INR 13,596 crores, and this comprised mostly of shipbuilding orders, with shipbuilding divisions contributing to INR 13,296 crores, and the other two divisions, the engineering and the engine division, contributing to the balance of the order book. I am happy to inform you that it is for the first time in the last 10 years that our order book has dropped below INR 50,000 crores. I consider it the reflection of an excellent execution rate. The current order book comprises of 11 projects consisting of 44 marine platforms. These include nine warships for the Indian Navy, one P17A advanced frigate, four next generation offshore patrol vessels, and four anti-submarine shallow water crafts, research vessels, two coastal research vessels, one Acoustic Research Ship. These orders for research ships, again, I am happy to inform you that we are the only Indian shipyard currently executing projects for construction of specialized research vessels. In addition, we are also constructing a 1,000 m³ trailing suction hopper dredger for the government of Bangladesh, 13 electric ferries for the government of West Bengal, 12 multipurpose vessels for a German client, one green tug, and four platform support vessels for which we have recently received the orders. So in total, 11 projects, 44 marine platforms. Coming to the status of these projects, the last ship of P17A. Again, happy to inform you that the first two ships have been delivered ahead of schedule. The last ship has clocked nearly 85% physical progress of construction, and we intend delivering this ship during this calendar year. By November, we should be able to deliver this ship. Four of the eight anti-submarine shallow water crafts have already been delivered, and the balance four ships shall be delivered during the current financial year. The fifth ship has achieved almost 91% physical progress of construction. The sixth ship very closely following with 88%. The seventh and eighth, around 65%-70%. As I said, all four ships will be delivered during the current financial year. Coming to the third naval project, the next generation offshore patrol vessel. The first ship has already been launched, and the second ship is being launched on the 11th of this month, next week. The third and fourth ship shall be launched during the third and fourth quarter of the current financial year. These ships shall be delivered commencing Q2 FY 2028, the first ship, and the last ship shall be delivered during Q2 FY 2029. Coming to the research vessels. All the three projects we have started physical construction, and the ocean research vessel has touched a physical progress of construction of about 20%. The acoustic research ship, about 12%, and the coastal research vessels, about 5%. The coastal research vessels, the keel of these vessels shall be laid during September, which is an important project milestone. The ferry project for the government of West Bengal is progressing smoothly, and we intend delivering two of these platforms in September and October, and the balance vessels of the projects shall be delivered by April 2027. The dredger project for the government of Bangladesh is progressing smoothly, and we are currently at about 70% physical progress of construction. The multipurpose vessel project for the German client is progressing smoothly. This is a 12-ship project. We have already commenced the construction, production of five of these ships, and the balance shall follow as per the contractual schedule. This in a nutshell gives you the current order book position, the composition, the status, and the execution plan. Coming to the orders on the anvil. As you are aware, we are the L1 shipyard for the next generation corvette project. It's a high-value project, and we expect the contract to be signed any time now. We are waiting for the contract conclusion, and this will give a much required boost to our order book. As I also mentioned, two contracts. We have received the letters of intent very recently. That is a platform support vessel for the ONGC and the green tug for the Syama Prasad Mookerjee Port. Five tenders are currently live from the Indian Navy and the Indian Coast Guard. Indian Navy has a requirement of 120 fast interceptor crafts. The order value could be to the tune of around INR 8,500 crores. The bid submission is due next month. Similarly, 31 waterjet FAC project, 31 follow-on waterjet FAC project. This is a Indian Navy project. Again, here the order value could be to the tune of around INR 3,500 crores. 22 interceptor boats for which the bids have already been submitted. The order value could be to the tune of around INR 1,200-INR 1,300 crores. Six next generation offshore patrol vessels for Indian Coast Guard, about INR 2,500 crores. And the much-awaited P17 Bravo. It's a high-value project again. The DAC AON value of this project is INR 70,000 crores. So all these five projects of navy and coast guard that are currently live, the total value could be to the tune of plus INR 80,000 crores. INR 80,700 crores is the expected order value. Two more Indian Navy projects, the RFP is expected to come out during the current calendar year. The 12 Mine Countermeasures Vessel project. As per the RFP conditions, it is expected that it is split between two shipyards, 8 and 4, and the AON value as accorded by the DAC is INR 36,000 crores. Similarly, another big-ticket item, that is the Landing Platform Dock, four LPD. This RFP is expected to come out during the calendar year. The order value is to the tune of around INR 35,000 crores. In a nutshell, about INR 80,000 crores worth RFPs are currently live. Nearly INR 70,000 crores RFPs are expected from two of these projects, that is the MCMV and the LPD, in the current calendar year. In addition, what I have just mentioned is only about the defense orders, that is both from the Navy and the Coast Guard. In addition, based on the demand aggregation of the non-defense PSUs, that is GAIL, ONGC, BPCL and so on, few tenders are already out. The MR tanker, four MR tanker, the tender has already been published. Six Very Large Gas Carriers, VLGC, six Aframax vessels, and another high-value tender for container ships is expected to come soon. In a nutshell, if you are taking the defense sector alone, about INR 150,000 crores worth orders are expected in the near future. Nearly INR 80,000 coming from the RFPs which are live, and about INR 70,000 expected from the RFPs which are expected to be likely to be published during the calendar year. This is excluding the NGC for which we are expecting the contract signing soon. Coming to our expansion plans. As I have reiterated during the earlier conversations with the analysts and investors, our current shipbuilding capacity is for concurrent construction of 28 platforms. With the ongoing modernization within our geographical premises, we intend increasing this to concurrent construction of 32 platforms by end of the calendar year, and we feel this capacity would be inadequate to meet the huge demand that exists both in the defense and non-defense segments. It is with this intent that we have decided to go in for both brownfield and greenfield expansion, both on the western and eastern seaboards. In West Bengal, we already have four shipyards, three dedicatedly for shipbuilding and one for ship repair. In addition to this, we have taken two more premises on long-term lease basis from Syama Prasad Mookerjee Port, and the expansion and revitalization project for these two facilities have already commenced. In addition, we are setting up a shipyard in West Bengal, Raichak, which is closer to the sea, and we expect the necessary approvals to be accorded during the current calendar year, and we will commence the infrastructure buildup from 2027. This project is likely to take, as with any shipbuilding facility creation, this will take about 3-5 years for full operationalization. Similarly, on the western seaboard, we are setting up a full-fledged total ship solution facility. That means a facility that would encompass shipbuilding, green ship recycling and ship repairs. This we intend proceeding on a PPP model, and we again expect the necessary approvals to be obtained during the calendar year and the project would commence next year. Again, expected to take 3 years for the operationalization and the operations to commence in that facility. In addition, we are focusing on new technology adoption and maximizing use of robotics in our production processes, both in core shipbuilding as well as in Bailey Bridge fabrication. This in a nutshell gives you both our financial and physical performance, our order book status, current project execution plan, and the orders on the anvil, and also a glimpse on our expansion plan. With this, I conclude my opening remarks and the floor is open for questions, if any. Thank you. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from this question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Your first question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead. Yeah. Hi. Good evening, everyone, and thanks for the opportunity. Congratulations for a good set of numbers again. Two questions. The first one is on next generation corvettes. Now, the order has been on anvil for quite some time. Just wanted to understand where is it stuck. Are there certain concerns around the orders that have been raised by the relevant authority? Just wanted to get a brief construct of this, because this order has been struck for quite some time. Part B of the question is, assuming the order is given to us, let us say, today, then how much time will it take for us to actually start recording revenue? Thank you. First, thank you for your compliments on the results. Yes, I would like to state that this is the 17th quarter on a trot that our financial success has been on an upward trend, and hopefully we'll be able to maintain this tempo in the coming quarters too. Coming to the much-awaited next generation corvette project. Yes, the project contract conclusion has got delayed a bit. We were expecting the contract to be signed either during the end of the last financial year or during the first quarter. But we are confident that the contract will be signed this quarter. We don't see any red flags with respect to the contract conclusion. That is our acquisition. To answer your question as to when the revenue recognition would commence. Now, this project has got, as per the RFP conditions and naturally the contractual conditions, this has got a pre-production period where the design studies would take place and the material ordering, the equipment ordering will take place. The first revenue recognition will commence next year. That is the financial year 2028. Revenue recognition will commence from financial year 2028, when we will be utilizing the activities involved in design and the vendor data information which we need to progress with the preparation of compartment design and the equipment layout. So this revenue recognition will start from the next financial year, assuming the contract is signed during this quarter. Now, in shipbuilding, we have a very peculiar kind of revenue recognition pattern where the initial phase, that is, for example, if a project is a five-year project, the first year the revenue recognition will come through the design-related inputs, which will contribute maybe 5%-10% of the project cost. Then the physical construction comes, the second phase. This should be between, let us say, the first year to two and a half, that is 50% of the project duration, where the revenue recognition will move up to about 20%-25%. Then comes the very steep upward revenue recognition curve, where the equipment and systems which have been bought are lowered onto the ship and the integrations happen. That is the phase where the maximum revenue recognition happens. Then, of course, the outfitting and the project completion. This is the broad revenue recognition pattern. To answer your specific question, yes, the revenue recognition will commence from the next financial year. Thank you. How much time it will take for this order to be completed? NGC order. NGC is an 8-ship project where 2 shipyards are building concurrently. The first ship delivery is after 5 years, and the project completion is 8 years. 8 years is the project completion time which is given. That means if the order is placed now, the eighth ship of the project, if those shipyards put together, would get completed by 2034, 2035. That is what I will say. Very clear, sir. The second question is essentially on the latest AON trend that we have seen, particularly for Navy. There is a lot of emphasis on the unmanned vessels and autonomous platforms. Just wanted to understand our preparedness for that. Does our expansion plan also is focused on building certain capabilities on that front, or we already have those capabilities and we will be bidding for such RFPs as and when they come? Yes, very interesting question. To answer your second part first, whether we have the capability. Yes, we have the capability, and it is with this intent. We were clear that the Navy having a very clear autonomous roadmap. We were clear almost 3, 4 years before itself that the Navy would go in. Navy and of course, followed by Coast Guard would go in for an autonomous environment where a large number of unmanned vessels would come in. We started with the prototype development of an unmanned surface vessel, successfully proved. Just for information, we have also executed a project for the NSTL, Naval Science and Technological Laboratory, Visakhapatnam, a DRDO organization for an unmanned surface vessel. In addition, an autonomous underwater platform, which was developed by us. Again, the prototype successfully proved in the Pangong Lake about a year back. We are technologically competent and technically ready for execution of this project. We have been actively participating in the make projects of the government steered by the Navy. For example, for the ASC, that is the Acoustic Research Ship project, which the Navy, an autonomous project which the Navy is steering. We are very much there. We are one of the companies taking part in that. We are again being shortlisted for another project of the Navy, which is again for an underwater unmanned platform. We are very much competent and interested, and also actively taking part in these schemes and the projects which Navy has come up for autonomous unmanned platforms. Thank you. Great, sir. Thank you so much and all the best. Thank you. Thank you. Your next question comes from the line of Dipen Vakil with PhillipCapital. Please go ahead. Yes. Thank you for this opportunity, and congratulations on your great execution for this, sir. My first question is on the line of your CapEx announcement that you did, sir. Can you help us with the quantum of CapEx that you are envisaging for greenfield as well as brownfield side of it? What kind of capabilities will it add to your current existing ecosystem in terms of whether the dry dock size will be the bigger one, especially in Gujarat? How will it help you address the bigger and sizable opportunities, either in defense or commercial side of it? That is my first question. Thank you. We have a very clear expansion plan, and in turn, a clear CapEx infusion plan. If I divide this into two buckets, one is the minor projects that we are undertaking, again, with a very clear, let us say, capability enhancement pattern. For example, two parcels that we have taken over from the Kolkata Port Trust, that is Syama Prasad Mookerjee Port, where the capital infusion is limited, where we already commenced the revitalization, and there the capital infusion is expected to be just about INR 200 odd crores. This we'll complete within a year and a half, 18 months, we'll be able to complete that. Coming to the larger projects, we are just undertaking two projects. One in West Bengal, I mentioned it's towards the sea. The land is already with us, again, on a very long-term lease from Kolkata Port Trust. Here, we are creating a full-fledged shipyard. We expect the capital infusion to the tune of the DPRs in its final stages. So I'll be able to give you only an approximate figure. It'll be about INR 2,200 crores, which the setting up of the facility would take 3-5 years because it is a completely greenfield setup. Coming to the West, what we are intending, here the DPR is complete. The environmental clearance has already been obtained, which means this project is moving at a much faster pace. The capital infusion would be to the tune of around INR 2,000 crores. This will be a total ship solution facility, as I mentioned during my opening remarks, that this will comprise of shipbuilding, green ship recycling, and ship repair capability under a single roof. Coming to the specific question which you asked as to what does it add to our current capability. One, our current capability, as I mentioned, is to undertake shipbuilding, concurrent construction of 28 platforms. When I say 28 platforms, that include platforms up to about 10,000 ton displacement and 12 meters length. This would cater for most of the defense platform, but when we come to commercial ships, they are much, much larger in size. So there we have a difficulty at this moment, and that is the intent of creating these facilities. One, to circumvent the riverine constraints. Second, to obey the length and displacement restriction. So we intend, with the creation of these two facilities, this capacity constraint will be completely obliterated, and we will have the capability to build 43 platforms and the 11 types of platforms that we have added, 11 number. That means from 32 to 43, there will be large vessels of Aframax and VLGC type. This is the benefit, this particular expansion project that will accrue to the shipyard. Second is, here in Kolkata, there are four shipbuilding facilities exist. We'll be focusing, utilizing them, focus towards the defense shipbuilding. The facility in Gujarat, while we will use spare capacity there for warship building, but the primary focus will be for green ship recycling and building of large sized ships. I hope I answered your question. Thank you. Absolutely, sir. Second question is, you mentioned about the tenders which are already out on the commercial side, namely MR tanker, VLGC, Aframax, and even the container ship tender, which is expected soon. Sir, now how does our technological capability stand for these large size carriers? At the same time, how do we participate in this tender with the current capacity? Are we looking to partner with some company or take some tech from foreign company? How are we participating in for such commercial vessels? Okay, to start with, during the initial discussions, I had mentioned we already won an order for a set of four platforms of P17A. You have to understand that this is the first order to be awarded, the letter of intent to be awarded for among the lot that has been aggregated by the MoPSW from all the PSUs. We are happy about that. Now, coming to the next few projects, that is the MR tanker, the VLGC and of course, the container ships. MR tanker, we are collaborating with one of our sister shipyards, and so are we doing so for the VLGC. In the VLGC tender itself, there is a condition that, of the number of vessels they have promulgated, I think it's eight ships they have promulgated, that two of them have to be built at a shipyard which has already got proven capacity in building of VLGCs. We, along with our partner shipyard in India, we already tied up with one of the foreign shipyards with proven capability, and we'll be bidding together. We means the two Indian shipyards will be bidding together for this. Coming to the container ships, yes, currently, we do not have the physical capacity because the size of these ships are large. But we are going in for a partnership with one of the other Indian shipyards who have got the dock and berth infrastructure to handle this project. We have a very clear strategy for addressing the limitations that we currently have so that we don't miss out on any of the high-value orders which are coming from this non-defense segment. Thanks. That is very encouraging to hear, sir. Thank you so much. Sir, if I can squeeze in one last question. Sir, can you help us understanding the execution momentum in FY 2027? Will we maintain the similar execution momentum, or do you expect some softness in growth numbers from, say, 38%, 35% to 40% might get slightly lower in FY 2027? Currently, we are in an execution phase. Actually, if you see last year, we have delivered eight ships. When those ships are delivered, the revenue and in turn the profits would increase. We are still in that phase, but we all must be clear that the current order book is INR 13,596 crores. Of this, the two projects which are major, which means the P17A and the anti-submarine shallow water crafts, both, for example, the P17A, we elected about INR 4,500 crores and the anti-submarine shallow water crafts about INR 1,816 crores. These are the major projects which are on the anvil of completion. So the current quarter performance, we will be able to replicate in the coming quarters too. Got it, sir. Thank you so much for answering my questions, and all the best for FY 2027, sir. Thank you. Thank you. The next question comes from Rainav Kavishpare with 361 Capital. Please go ahead. Hi, sir. Thanks for the opportunity. My question is on GRSE's indigenization levels. Sir, could you elaborate on the current level of indigenization across our portfolio, and also identify the key systems, subsystems, or components where we continue to remain dependent on imports? Okay, thank you. Very interesting question, and this has been the focus of our government also, indigenization. See, one thing we all must clearly understand that we are platform integrators. Naturally, GRSE being Garden Reach Shipbuilders & Engineers. The other part, the engineers part, I will answer separately. But coming to the shipbuilding part, we are platform integrators. When we are platform integrators, most of the equipment and weapons, or let us say, the propulsion engines, they are all nominated by the customers, be it defense shipbuilding or be it commercial shipbuilding. Then the nomination comes from the customer. For example, if a commercial ship customer wants an engine of, let us say, German make, we have to procure the German engine. This is a contractual obligation, and therefore, expecting indigenization there would be a futile exercise. However, with respect to our shipbuilding, I will segregate this into four components: float, fight, move, provide. If you are taking the float component, float component mostly comprises of the ship's hull, where the stability aspects are involved. India has achieved, and so has GRSE achieved 100% indigenization. But the float component comprise only about 10% of ship cost. Then comes the fight component. Fight component comprise of the weapon cell systems. Here, I am happy to inform you that from a very modest indigenization percentage, we have gone up to almost 60% indigenization today, with many of the Indian defense manufacturers are producing weapon cell systems, including my sister company, that is BEL, for the sensors. Now, coming to the float component. This is where currently there is a catch because float comprise. Sorry, move. Move comprise of the propulsion engines and the power generation and associated equipment. Here, by power generation, that is the diesel alternators, we are 100% indigenous. In case of propulsion engines, we have still not achieved indigenization, where the government has already initiated both for the marine gas turbines as well as for marine diesel engines, but this will take a finite amount of time. Coming to survey vessel, survey vessel is the firefighting equipment, the safety equipment, and so on. We are about 70% indigenized. So net net, if you take 100% cost of the ship, we are talking by value. In the last few projects, few projects that we just take, which we have completed, that is an offshore work. Those four ships have already been delivered. We know exactly what is the kind of indigenization that we can achieve. And the survey vessel large, which we already completed the project. There, we have +80% indigenization overall. This is for the shipbuilding sector. Coming to the other sectors, let us take Bailey Bridge, which is one of my business verticals, where it is 100% indigenous. Every component is fabricated, including sub-components are fabricated from India source. The source from India and fabricated here. So it is 100% indigenous. Coming to the other product, let us say marine diesel engine. We have a collaboration with one of the foreign OEMs for co-production of a marine diesel engine. When the project fructifies, the indigenization level would be about 55%-60%. If you're taking about deck machinery, another business vertical of GRSE, we have about 90% indigenous content. So this is where we stand as of today. But again, I go back to my first statement with respect to indigenization, that while all of us, the entire ecosystem is striving towards indigenization, it has got its limitations and the time implication. Because indigenization does not come like a switch getting on, it takes time. So currently, we are, let us say, about 80%, 85%. Maybe it will take about 5-10 years of achieving 100% indigenization. Thank you. Very detailed, sir. Thanks a lot for that. Sir, as a follow-up, on the defense side, which domestic suppliers, in your view, are best positioned to substitute these imported components as procurement within the company becomes increasingly indigenous? Which private sector companies do you think could emerge as meaningful beneficiaries? Lastly, also within the defense electronics part, apart from Bharat Electronics, which suppliers currently have a meaningful volume share with us? Very interesting question. Now see, almost all the major private companies are into defense manufacturing. Be it L&T, be it Adani, be it Mahindra, be it these days, Kalyani. All of them are in defense manufacturing, and each one of them has contributed extensively towards indigenization. I think that gives you a broad answer about which are the major private companies. I may have missed out somebody, but I just hinted that. Those are the big companies. There are a host of startups. Today in India, about 17,000 MSMEs, about 1,000 startups, and about 675 innovators are involved in defense manufacturing. Most of them are focusing on new technology-based, and I am talking about the innovators or startup. Most of them are focusing on new technology-based indigenous production. Here, the limitation is there is still a percentage which is coming from abroad. To encourage the startups and innovators, we ourselves, GRSE, my company, has taken an initiative and started an open challenge scheme for startups. We get an acronym called GAINS, GRSE Accelerator Innovation and Mentoring Scheme. Believe you me, the response has been overwhelming. About 101 startups took part last year. So the entire ecosystem is striving towards indigenization. Let us see how it moves or how fast it moves. If you ask the question of BEL. In addition to BEL, of course, HAL is the major contributor towards indigenization. We also have some links with HAL because the marine gas turbines come from them. Of course, this is imported from abroad, but certain amount of indigenization takes place there. ECIL is a part of indigenization, and there are other PSUs like Helcom, who also are contributing towards supplying indigenous products to shipbuilding. Thank you. Thanks a lot for that, sir. Very detailed explanation. Hope to see the long-anticipated contract getting signed soon. All the very best. Thank you. Thank you. The next question comes from the line of Himanshu Pandey with Shanvi Promoters. Please go ahead. The line for the current participant has been dropped from the queue. We will move on to our next question. Before we take the next question, a reminder to all the participants that you may press star and then one to ask a question. Your next question comes from the line of Harshit Kapadia with Elara Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity and congratulations again for a good set of numbers, sir. Would you be able to share the order book breakup for GRSE, sir? Thank you, Mr. Harshit. Order book total current is INR 13,596.26 crores. Within that, the shipbuilding contributes nearly 95%, that is INR 12,980 crores. With the other verticals, there is ship repair, about INR 96 crores. The Bailey Bridge is 150. Sorry, the naval surface gun, INR 219 crores. Bailey Bridge is INR 158 crores. The deck machinery, INR 58 crores. Our diesel engine plant, INR 82 crores. Now, I will just give you a breakup of the shipbuilding order book breakup. Sure. P17A, the last ship, INR 4,519 crores. Its separation over the craft, about INR 1,815 crores. Survey vessel large, we have left with about INR 225 crores. The NGOPV project, about INR 3,075 crores. The ocean research vessel is INR 740 crores. The acoustic research ship, INR 450 crores. The coastal research vessel, INR 458 crores. The ferry, INR 203 crores. Multi-purpose vessels and the dredger put together, about INR 1,355 crores. So about 74% of the shipbuilding pie is from the four naval projects. The balance, 25%, is coming from the non-defense segment. There was a period when 95% or 98% of the shipbuilding order book was comprised of defense orders. Now the split breakup has been different, mostly because we have been executing the research ship projects for various ministries, and of course, the export orders. So within a nutshell is the breakup of our current orders. Thank you. Thank you, sir. Just one more question, sir, on the P&L. Probably if you have answered this question, I am sorry for reiterating. On the other expense side, the other expenses have reduced significantly. Was there any one-off here, or what would you attribute this to? Once again, could you repeat the question? Thank you. Sir, other operating costs have come down significantly in this quarter, in Q1 FY 2027 results. What would be the reasons for that, sir? Other expenditures coming down? Yes, sir. One second. In the last quarter, we had three of the ships which were commissioned. So the last phase of commissioning, a certain amount of expenditure was incurred for these activities. So the current quarter, we did not have such occasions. So that has affected a drop in the other expenses. Thank you. Okay, sir. I will come back in the question queue, sir. Thank you. Sure. Thank you. Your next question comes from the line of Kashya Ramesh, an individual investor. Please go ahead. Hello, sir. Congratulations on a great quarter. My question is on exports. After the German order, there is nothing significant coming big pipeline or anywhere. You are not mentioning anything about exports. Does GRSE bid for export? You are a Navratna. Do you have the freedom or again, it should come from an inter-government team? Okay, thank you for the question. Firstly, for exports of non-defense platform, we do not need any government approval if the product is getting supplied to a friendly foreign nation. Defense exports mostly are through G2G ties, so we rely on our government for defense exports. Coming to the non-defense exports, you had mentioned that we have not gone in for any export orders after the multipurpose vessel contract. It's a very conscious act. When we went in for obtaining the multipurpose vessel export order, at that point of time, our government had not aggregated the demand of the Indian non-defense requirements. Now the demand has been aggregated and the opportunities are fantastic. About 200-plus platforms are required. Yes, export is interesting, and we want to export more. We will export more. Right now, we are not taking any export order considering that there are huge opportunities available within India. Having said that, if an attractive, profitable, and visible order opportunity comes from Europe or any of the other customers, we will take it up. This is the strategy which we have taken. Again, to reassure you that there are enough opportunities available within India, and India looks to India for giving the product. Now coming to the Navratna status. Navratna status definitely provides us the much-needed autonomy for expansion, and we intend utilizing this privilege or the expansion autonomy to the hilt. Thank you. I have one more question. What about the water metro projects of Mumbai and other cities? Is GRSE actively bidding? I saw some of your officials meeting Mumbai Water Metro project people. You didn't mention anything about that. We are currently executing one project for the government of West Bengal. It is a World Bank-funded project for 13 hybrid ferries. Actually, you are absolutely right. We are pitching in with the various state governments for their respective water metros. You will understand that even Goa, they are coming up with a water metro development. I think they have engaged the Kochi Water Metro as the nodal agency for coordination. Yes, we are engaging with these various state governments. As and when the RFPs come out, we will definitely take part because this is an area where we have already established ourselves. Because our ferry that we have provided to the government of West Bengal is the largest and the fastest fully electric ferry in the country, and we intend leveraging and capitalizing on this edge that we have. We will take part in the RFPs which are coming out. I expect some of them to come out in the coming one year. We will take part. Okay. Thank you, sir. Thank you. Our next question comes from the line of Yash, an individual investor. Please go ahead. Hi, sir. Congratulations on good set of numbers. Really sorry to interrupt you, Yash, sir. Your audio is very feeble. Can you speak up a bit louder? Hello. Is it audible? This is much better. Yes, sir. Please go ahead. Yeah. Hi, sir. Good evening, and congratulations on good set of numbers. Most of the questions I planned to ask, were asked by the other participants. I just like to ask, reiterate, the question which was asked will be prior calls, like are you going for any bonus or stocks with Yeah. Because other shipyards have done that, right? That was my only question. Yeah. Sorry. Could you repeat the last part, the question part once again? Sir, I am talking about any corporate actions that are in the queue, sir, like say, stock split or something like that. Oh, we are waiting. I understood. We are fully aware that this is controlled by the government DIPAM, and we are waiting for their instructions on this, and whatever instructions come from the DPE and DIPAM, we will abide by that. Let us wait for their directives. Thank you. Good, sir. Thank you very much. Thank you. Thank you. The next question comes from the line of Alok, an individual investor. Please go ahead. Alok, sir, your line is unmuted. Please proceed with your question. As there is no response from the line of current participant, we will move on to our next question. Our next question comes from Harshit Kapadia with Elara Capital. Please go ahead. Thanks for the opportunity. Sir, your employee costs have also come down despite such a strong increase in revenue. Is that because since you are nearing ending the completion time, so mainly the contractual workers are reduced? Is it because of that? You are absolutely right that the contract expenses have come down. The deployment of contract workers varies from the project execution phase. Right. In the final stages of outfitting, if you see the contract expenditure during Q4 FY 2026 would have been high, because that is when in that last quarter, we delivered Precious. So maximum deployment of personnel would have been there, and so the contract value would have been high. It's a sinusoidal thing. You will definitely see some increase in that in the coming quarter, because that is when we expect to deliver a couple of ships. So as you rightly said, it is purely on the project execution phase. No abnormality in that. It's very normal in our shipbuilding cycle. Understood, sir. Thanks. Just a second, sir. Just in relation to that, next year is going to be the wage revision which will happen. So how much increase in employee cost can we expect? Will it be in the range of 15%-20%, which we see earlier, or will it be lower, sir? Any number or any color on this would be helpful. See, I agree and I understand the question, but our anticipation is that it could be of similar range, 15% to 20%, which is normal in every wage revision. We don't see any abnormality, and we already factored this in our, let us say, future projections and calculations. Okay. Fair enough, sir. Okay. Thank you, sir. Thank you. Thank you so much. Thank you. The next question comes from Pratap Maliwal with Mount Intra Finance. Please go ahead. Yeah. Hi. Am I audible? Yes, sir. You are audible. Yeah. Hi. Thanks for taking my question. I just wanted two clarifications. Sir, I believe you had mentioned a water metro project that you may be executing. Could you give us some idea of what could be the tentative order size of these kind of projects? Secondly, just regarding the next-gen destroyer program, I think that you had spoken of in the past, is there any incremental update that you could share maybe on the timeline or the order value? Thanks. Okay. Thank you. The water metro project, as an earlier speaker, an analyst or investor mentioned, many of the states are now looking at setting up a water metro. Kochi has already a facility, and here we are doing one for the government of West Bengal. These are not very high-value projects. The order value could be to the tune of around INR 200 crore-INR 300 crore per metro. They are small platforms, but the attractiveness or the overall necessity of a green platform. Here again, the volumes are high. If for five states, let us say, going for this, order value could be to the tune of around INR 1,500 crore. In terms of numbers, it could range from 30 to 40 platforms. This, in a nutshell, I think would give you a hint as to what are the numbers and the order value involved. Coming to the major project with Navy. I think you asked about the next generation destroyer. Is that what you asked? Yes, sir. This is one of the projects which, as we are able to understand in their perspective, plan, it's a high-value project where, as per my understanding, this is not yet gone for a DAC approval, which means that after a DAC approval is taken, it will still take about a year and a half to two for the RFP to be issued. I do not expect, in my estimation again, but I do not expect the RFP to come out for NCD, till FY 2029, because currently we are in FY 2027. Depending upon the priority what Navy has got, even if the DAC approval is taken in the current financial year, it could take about a year and a half for the RFP to come out. Keeping the NCD apart, as I mentioned during my introductory remarks, there are enough opportunities, as I stated, about INR 80,000 crore worth RFPs are currently out, and about INR 60,000 crore more is likely to come out during the current year. That is to say, the volume is around INR 140,000 crore. The stakeholders with the contenders for these INR 140,000 crore to INR 150,000 crore are just about five to six shipyards. This is where we stand today. The opportunities are adequate because they're excluding the NCD contract that we expect soon, and also excluding the commercial shipbuilding opportunities that are available in the domestic market. Thank you. Thank you. Thank you for a detailed answer. That cleared my message. Thanks. Thank you. Thank you. Ladies and gentlemen, we will take this as our last question for today. I would now like to hand the conference over to the management for closing comments. Thank you, and thank you, Chintan, from Concept. Thank you all the investors and analysts for participating in this conference and showing interest in our company as always. I definitely look forward to future interactions. Waiting for the next quarter. Thank you. Jai Hind. Thank you. On behalf of Garden Reach Shipbuilders & Engineers Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.