Q4 25/26

Apr 28, 2026

Summary

Full-year revenue reached INR 7,007 crore, up 20%, and PAT was INR 748 crore, up 42%; eight warships were delivered. A INR 15,324 crore order book and a large prospective naval and commercial pipeline underpin execution visibility.

Ladies and gentlemen, good day and welcome to the conference call of Garden Reach Shipbuilders & Engineers Limited, arranged by Concept Investor Relations to discuss its Q4 and FY 2026 results. We have with us today Commodore P. R. Hari, Indian Navy, Chairman and Managing Director, and Shri Niranjan Mukund Bhalerao, Director of Finance and CFO, and Shri Sandip Mahapatra, Company Secretary and Compliance Officer. Please note that 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. A warm welcome to each one of you to the conference call of Garden Reach Shipbuilders for the results of Q4 and financial year ending March 2026. With me here are Shri Niranjan Bhalerao, Director of Finance and Chief Compliance Officer, Srimati Aparajita Ghosh, Chief General Manager, Finance, and Shri Sandip Mahapatra, Company Secretary. Over the next few minutes, I shall give you a glimpse of our financial performance, and thereafter, highlight the significant performance results of the company recording strong numbers during the last financial year. I shall also touch upon the current order book, execution plan for the ongoing projects, as well as the future outlook of the company, including the plans of our expansion plans. As I've stated, our financial performance during the quarter and financial year 2024-2025 ending March 31st has been strong and this has been the result of an equally robust cyclical performance. During the quarter, as well as the year, we have recorded our best-ever financial results. The revenue from operations recorded during the quarter was INR 2,119 crores, registering a growth of 15% over the last year. The profit after tax has moved up by 24% from INR 744 crores to INR 903 crores. Similarly, our margins have also shown a substantial increase. When we take the full financial year, I'm happy to inform you that we have recorded revenue from operations of INR 7,007 crores, registering a growth of 20% over the last financial year. Similarly, our profit after tax has moved up from INR 527 crores to INR 748 crores, registering a growth of 42%. All in all, this financial year has been excellent for us especially in the quarter four. Coming to the cyclical performance, our core business continues to be shipbuilding, and from this segment, I tell you this again has been the best-ever year in the history of our company. We delivered eight warships to Indian Navy. Interestingly, three of these vessels were delivered on the same day, and this perhaps is the first time in the history of our country. We also launched one warship and the keeling of 19 platforms. These 19, of course, include three frigates that we are building for the Government of Western Australia. Three frigates plus six more platforms we've done the keeling during the last year. Coming to the other business verticals, seven naval support vessels were delivered during the last year, and four of these were successfully completed for sea acceptance trials. We also delivered 110 marine steel bridges. As you are aware, we have a marine bridges business vertical. During the last year, we delivered 110 bridges including 30 for exports. I am also happy to inform you that the revenue from this particular vertical has touched INR 200 plus crores for the first time in the history of that vertical. Also, we have recorded revenue of over INR 217 crores from exports. Our current order book stands at INR 15,324.16 crores. Actually, I am happy that our order book has dropped below INR 20,000 crores. In the last five years, for the first time our order book is dropping below INR 20,000 crores, and in my appreciation, this indicates that our execution rate has improved. This order book consists of nine projects consisting of nine platforms. P17A project, one more ship is yet to be delivered. The anti-submarine shallow water craft project, we have four ships ready for delivery. Four next generation offshore patrol vessels, one ocean research vessel, one acoustic research ship, two coastal research vessels, 13 hybrid ferry catamarans, 12 multipurpose vessels, and one mine countermeasure vessel. Coming to the execution plan of these ongoing projects. As I mentioned, one P17A ship is yet to be delivered. The ship has already recorded about 74% physical progress of construction, and we are very interested in delivering this ship in the current calendar year. The project is on schedule. Coming to the anti-submarine shallow water craft project. This is an eight-ship project, and of these eight ships, four have already been delivered. The remaining four ships, two of them have crossed about 80% physical progress of construction. Sanction files have been completed and we are preparing them for the contract signature, and we intend to deliver these ships by the end of the calendar year. The last two ships, ship 7 and 8, have crossed around 60% physical progress of construction, and we will be delivering these ships in the next year, thereby completing this project also. Coming to the next generation offshore patrol vessel project. This is a four-ship project, and the first of these ships have reached the stage of launch, and the launch of the ship is planned on 28th of this month. The progress of construction of the remaining ships is also satisfactory, and we intend to complete this project during financial year 2029. Coming to the other projects, the non-IPEF projects. The ocean research vessel we are constructing for the Ministry of Earth Sciences, one of their organizations called the NCPOR, Goa. This vessel has already gone about 50% of construction, and the ship is planned for launch during the current calendar year. The acoustic research ship that we are constructing for the DRDO, the ship has crossed almost 60% physical progress of construction. The ferries, the link ferries, six 200t and seven 100t ferries are on track. The first two ferries of the 100t are expected to be launched during May, this month, and the next one is planned for launch in the next month. This project shall be completed by the end of the current financial year. Coming to the two export projects. As you are aware, we have a project at Germany planned, the 12-ship multipurpose vessel project. Briefly, these are some of the project milestones of three of the ships have already been completed, and the project is on track as of now. The last project, which we have been executing for the government of Bangladesh, the dredger project, is on track, and we intend launching of this vessel in the current financial year. This, in a nutshell, gives you the execution plan for the orders booked. Coming to what is on anvil. Orders on anvil, as you are aware, GRSE is L1 for the next generation corvette project. Price negotiation committee have met, and we are expecting a formal signing of contract. The date is not fixed to happen any of these days. The order value is to the tune of around INR 150 billion. Currently, three tenders are live. One for the Indian Navy and two for the Indian Coast Guard. The multipurpose vessel for two of these ships, the tender is already out. We expect the order value to be to the tune of around INR 1,500 crores. The next generation offshore patrol vessels for the Indian Coast Guard, five of these vessels, each order value is to the tune of around INR 2,000 crores. 52 interceptors for the Indian Coast Guard, the order value is likely to be to the tune of INR 4,000 crores. In addition, three projects where we expect the RFP to come out in the next three months. 120 Fast Interceptor Craft project for the Indian Navy. Order value is to the tune of around INR 3,700 crores. 31 follow-on water jet FAC project again for the Indian Navy, INR 3,500 crores. Seven P18 Bravo ships for the ONGC. As you are aware, has already been accepted. Expect RFP to come out in the next three months, and the order value is likely to be to the tune of around INR 30,000 crores. This is in addition to the 12 mine countermeasure vessels, and the project is currently around INR 47 billion and four landing platforms, LPD, values to the tune of around INR 36 billion. Not included are the next generation destroyers or enabler projects, which are yet to get to the AoN stage. These are the projects listed out, are only the projects where AoN has been acquired. We appreciate the first three projects. 120 FIC, this one, follow on water jet FAC and the current next three months. Other two projects, the mine countermeasure vessel and the landing platform are most likely to be current year. The total estimated order back is to the tune of about INR 150,000, excluding, of course, the NGC project. In addition, what we had been discussing earlier, the aggregated demand of the domestic requirement of commercial vessels regulated by the Ministry of Shipping. Now it has gained traction, and four tenders are live. Four platform support vessels with cost could be to the tune of INR 4,000 to INR 5,000. Four MR tankers, three large gas carriers, VLGC, and six Aframax vessels. These tenders are live, and presently, we would be participating in these tenders. This is in addition to the visibility on the opportunities that are currently available. Coming to our expansion plans. As I had stated before, our expansion plans are on the right track. Just to give you the perspective, our current shipping capacity is for construction of 38 platforms. The ongoing expansion projects, the modernization projects in our shipbuilders, the capacity will get increased to 260 by the end of the calendar year. The projects that we have taken on for expansion is the creation of two brownfield shipbuilding facilities in West Bengal and two greenfield facilities, one in West Bengal and one in Vizag. What we anticipate is that with the revitalization package to shipbuilding that has been promulgated by the government, which is to the tune of around INR 610,728 crores, and the four platforms that has already been aggregated by the Ministry of Shipping, we expect the commercial shipbuilding sector to take another momentum, and it is with this momentum that we are expecting to increase our shipbuilding capacity. I have broadly given you a glimpse of our financial performance and how the strong physical performance during the last year has helped in this financial results. Given you a glimpse of the order book, the execution plan, the orders on the anvil, but also touched upon the expansion plans. I have finished, ladies and gentlemen, and you may like to have any questions that are appropriate. Moderator, you may take one, please. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star then one on their telephone. If you wish to withdraw yourself from the question queue, you may press star eight. Participants are requested to use handset while asking a question. Thanks in advance. We will wait for a moment while the questions queue assembles. First question is from the line of Amit Sheshad from GS Investments. Please go ahead. Hi. Good afternoon, everyone, and thanks for the opportunity. First of all, congratulations for a very robust quarter end here, sir. A couple of questions from my side. The first one is on, if I go to the Standing Committee on Defence reports, then something very striking, if you look at the summary of contracts which are expected to be over the next few years, these have gone down substantially. In the last report, it was around INR 22,000 crores. In the report released in March, it is only INR 18,900 crores approximately for warships and survey vessels, basically. In that light, just wanted to understand how to look at the focus of the government in the near term on these warships and survey vessels that cover both the area. So that was the first question. Thank you, Mr. Amit. Now, when a figure of INR 18,900 crores has been allotted for shipbuilding, my position is the fund outflow during the current year. As you are aware that government, including during the last year, perhaps even during the last Defense Acquisition Council, have given a green signal for what I had disclosed earlier. The government focus on warships building is there, and it is evident from the fact that the AoN is being accorded and RFPs are being promoted on site by both the major institutes of India and the Coast Guard. Also the fact that these RFPs are getting translated into contracts. That is why my first take was the NGC project is live and we have the L1. However, it is to the tune of only for us. The figure what we have mentioned is perhaps the fund outflow that is anticipated for these projects in the current financial year, and that should support the project trajectory. Another aspect is that both the services, the Indian Merchant Navy, the Navy, and the Coast Guard have a clear roadmap stated in the schedule which has been approved by the government. To answer your question, the figures what we have stated does not reflect the intent nor intention of the government to go this way in this direction. Thank you. Just a couple of things. The second question that we have is, again, taking a step back, it is a very macro question. Considering the challenge for warfare, where there are many DPR of its own, where there is a lot of focus on autonomous vessels, on drones, new age electronics. Where do you think traditional platforms like corvettes and destroyers stand or stack? Is not the relevance of these traditional platforms diminishing, which is part one. Part two is that how GRSE is gearing itself for maybe autonomous kind of vessels or some kind of modern ship or the small ships that are being used in modern warfare. So are those in the DPR keeping in the background? What could be the strategy exactly? This is a 5-year question, not something that is there for this year or something. I just want to know your thought for this. Thank you. You are essentially right that there has been an increased focus on autonomous vessels. What this has outlaid is the fact that the current situation got the focus of the government to the fore. Again, the Navy has got and promulgated autonomous warfare almost 3 years back, even before the current situation escalated to the state it is at now. It is just that for us, all of us, outside the realm of direct warfare, this is coming to focus. So even by autonomous platforms, be it the subsurface, surface, or aerial will have been, are being, and will be placed in a larger manner, let us say, larger context. The conventional platforms would continue to remain. Conventional platforms, one, they provide heavy-duty muscle in terms of tonnage. Second, they have huge endurance, great endurance to stay more than 3 months at sea. These conventional platforms continue to find application and as an experienced individual in this field, conventional platforms of all kinds, be it a fast attack vessel or be it an aircraft carrier, or be it a conventional or scientific submarine. This first and last efficient platform will remain. Coming to GRSE, whereas we had ventured into autonomous field as late as three and a half years back, and we started off in all three dimensions, if I recall, both the fast attack vessel, surface, and aerial. We have successfully developed both the subsurface and surface versions. Just to inform you that one of our products has been supplied, provided to one of the IAP organizations. We see opportunities here, and we are an integral part of the Make-I and Make-II schemes that the government has promulgated in recent years where autonomous underwater vessels see a very much in the fray. If that takes a year. Since you asked me what can be the short term and what can be in the next five years. In the short term, what we have developed is many tons in, let's say, more expansion in the domestic market. In the long term, that is three to five years, is big projects for the XLUUV, that is the extra large autonomous underwater vehicle concept shape. Perhaps in the next three to five years, we should be able to develop and deliver this project as well. It is moving in the right direction. As with many of the ship manufacturers of India, we have a separate process particular on the new technology. We are focusing on autonomous platform. In three to five years, we will be gathering for the momentum. Thank you. Great. Thank you so much, and all the best. Thank you. Thank you. Next question is from the line of Harshit Parmar from Elara Capital. Please go ahead. Yeah. Hi, sir. Thanks for the opportunity, and congrats for a very good result. A few questions from my side. Sir, first, could you please give us the order book breakup, which you generally give across the ships? That's the first question. Thank you, Harshit. The order book breakup, as you mentioned, our new order value, order book value is INR 15,394 crores and about 95% continues to come from shipbuilding. The shipbuilding value is tune of around INR 6,360 crores. Within shipbuilding, P17A, it has INR 5,868 crores remaining, and the additional order of about INR 2,035 crores, and the next generation also contributes INR 3,168 crores. The warship building orders are tune of around INR 11,361 crores. Coming to the non-civil platforms. The ocean research vessel, INR 749 crores. The coastal research vessels, 2 of them we are doing, INR 260 crores. The acoustic research ship, INR 156 crores. The electric ferry, hybrid ferry, INR 210 crores. The multi-purpose, INR 1,345 crores. And the dredger, about INR 60 crores remaining. What is interesting is that the non-civil segment, now we have about 72.5% of our total order book. Understood, sir. Sir, my second question is, on the 31st of March, you reported the revision revenue figures, and on the result day, when you gave out the numbers of revenue, there was a huge data revision. It was very positive, of course. But what would be the reason for this difference, if I may ask you? Because generally, historically, we haven't seen such a huge difference between the provision number and the actual revenue figures. Very interesting. Are you happy or not happy? Of course, sir. Very happy, sir. Okay. Since you are happy. Actually, I am sure you are keeping track of our progress and achievement milestone. A couple of ships came up, which were delivered on the last day. So the revenue recognition, the liaison visibility, all these aspects were going on. That is the reason why we went for a conservative figure. So when all this happened, and when we formalized the deliveries and handed over the revenue, after the release from the ships, then the revenue now comes to our best figures of INR 12,000 crores. Understood, sir. Sir, follow-up question is, on the NGC order. If you remember, sir, the last time when we met, you were very confident that probably we will be getting this order in the month of March 2026. Today also, you mentioned that price negotiations are going on. You are expecting the order to come soon. So where is the hiccup, sir? Where is the delay? By when do you think the NGC orders will come? In addition to this, you also highlighted certain smaller projects, 22 warships and other smaller types. There are two winners, or it will be a single winner, if you can highlight, sir. Okay. Thank you. First thing I would like to clarify that the price negotiations are completed. Actually, when we offered at that stage, the price negotiations were completed. We have been submitted. We were expecting the contract to be signed by March 31 because of the contract negotiations, terms and conditions, those aspects were in progress. Very confidently, we appreciated that it will get completed by March 31. Our current assessment is that the contract would be signed during the current financial year. It goes for our direction. No red flags as of now. The smaller projects which you mentioned. The first project was multi-purpose vessels with single shipyard. So only 2 ships are there. So 2 new projects. Coast Guard, 5 ships, again a single shipyard, and naval survey boats, again a single shipyard. The other project, the 120 Fast Interceptor Craft and the P18 Bravo. The Fast Interceptor Craft 120, it is split between three shipyards, HC and HAL. That is the RFP submission and the HCR submission. The second project, which is again Bravo, again would complete with single shipyard 4 and 3. Okay. The mine turnaround vessel, which is a drillship project, would be between two shipyards, 8 and 4. The landing platform block, 2 and 2. These two, the last two projects, as I mentioned, are time off. I expect the first two amounts coming in the latter half of the current financial year. Sure. That gives you all the executive orders in hand, including This is really helpful and thank you for this insight. Wishing you all the best. Thank you. Next question is from the line of Bhavya Gandhi from Bajaj Alternate Investment Management Limited. Please proceed. Sure. My first question is regarding when we see the revenue booking for NDIC starting and in the intermediate future, you have smaller ships where you could book additional revenue. Can you throw some light on how the revenue numbers look like for the next 2 years? Thank you. Revenue booking from NDIC during the current quarter. We expect the bookings to happen in the second half of the next financial year. That is FY 2028, the second half of FY 2028, we expect the revenue generation from NDIC to commence. And percentage-wise, it will be just percentage booking-wise for the first 2 years? See, typically, you are aware, since we have been interacting over several investor calls, listening. We follow the electrical, which means once the mission of the preparatory activities of construction are in progress, the recognition has been made. That picks up as the significant construction starts in terms of block fabrication and hull fabrication, where the steel and personal fixtures are fitted to the platform. Then comes the next phase, where the super phase, where the equipment gets loaded. As you are aware, around 65% of the ship's cost is equipment. Then the curve will pick, flatten, and the ship will move towards delivery. Once delivered, the balance amount. Considering this aspect, it's the first year, assuming we gain, we are assuming any kind of flexibility. We don't plan any revenue recognition during the current year or even into the next. The next part, as I mentioned, the commence revenue recognition basically, a very material amount which is coming from the designing stage through getting the ships ready for construction. The biggest chunk of the revenue recognition will start from engineering design and hull construction work, which were and will be completed. This is where my stay at this company. Currently, as I mentioned, we have about 39 platforms for construction. Again, as you can see, there's very less action as a few of these platforms are in a mature state where the construction progress is very good. We expect that the revenue as well during the current financial year is going to be very healthy and in line with what it has been these last 3 or 4 years. The next year, that is FY 2028, we plan with balanced projects for hand, the P17A project, the research vessels, and the commercial vessels what we have in hand. Of course, we also expect a reasonable amount of orders which are on-hand the coming RME. Especially, the order book deficit currently is there, will be filled by ADC1 and at least 65% of the balance work on hand. So that means even in FY 2022 will not give you some revenue. Is that understanding? I did not state that. All I am telling is that by FY 2027, in the current financial year, a couple of more projects would get completed. The remaining projects would give us revenue during next year, FY 2028. Okay. During these 2 years, how should one look at it? Because you have been guiding for high digits in terms of margin, while at ADC, it will be in the design phase. This pushes up on the operating leverage also, because your fixed cost will continue to remain elevated. If you can guide for at least 2028, 2029, how the EBITDA margins will look like beyond 2027. In case of 2028 and 2027, we will try and maintain similar margin. We will try and maintain similar margin. At this point of time, the balance project which is currently in hand, the P17A project, or the research vessel project, they will be getting completed. A similar margin during that year also. Okay. Also, one thing. Also in FY 2028 and 2029, 2028, the NGDC will start giving us revenue. Perhaps, maybe to the tune of around 3% to 4% to 5% of the overall project cost substantially. The next year, once the construction starts, again, the project will start contributing revenue. I can also mention that what is coming from NGDC in the next financial year second half will balance with the projects which are on-hand. Let us take the 15th August, where there are only as of now, again, like the NGDC, there are only four ships left and with our kind of experience and exposure to building vessels, we stand a good chance of winning and this is a very big order. So even if we go make conservatively, you know, we are looking anywhere between 8 to 10 ships. It is a contract of construction exactly a year from the time NGDC 20 completes. So original position from signing levels comes in FY 2029. So if it shifts off the gap at this moment is not a great concern. This is my opinion. Very well elaborated. Thank you so much for the detail. I really appreciate it. That is it from my end. Thank you. Next question is from the line of Ashishpura from Axis Securities Limited. Please go ahead. Yeah. This is Sanjay here. Sir, my question was regarding the margins. We have done very good margins in the subsidiary side and aided by the write back of excess provision that you had taken on various major platforms that you are building. For the future, should we kind of adjust to this write back that you have seen, that you booked to really look at the sustainable margin perspective? It should be around 9% to 10%. Sorry, Mr. Ashish. Could you repeat the question, please? Your voice was probably not clear. Could you please repeat the question? Yeah. Sir, what I was saying was that regarding the sustainable margin in FY 2025. Right. Okay. Hello? Yeah. Hello? Hello. Hello. Hello. Hello. Yes, please go ahead. Yeah. Sir, what I was saying was that with the excess provision, write back, the margin in FY 2027 will be even some. If we look to maintain margins, it should be adjusted for the benefit that we received in the fourth quarter of FY 2027 and FY 2026. Is that the right way to look at how the margins will pan out in the next years? See, all I can say, frankly, the question was not clear. Beyond these numbers, I think I couldn't get it properly. The voice is a bit distorted, but what I understand is you are asking if the margin trend, what would continue in the current financial year. I can assure you that current financial year margins would be similar. That's what I understand you asked. It's not clear. I was asking that, see as per the benefits that you booked on account of the provision write back in the fourth quarter of FY 2027 and FY 2026. Margins are around maybe. That is the base margin to work out the projection or it should go by the current run rate and then the margin. We will be able to maintain similar margins. What we said last year, we will be able to maintain similar margins in the current coming year, current year. That is 11%? Roughly 9%, 10%. All I can say at this stage that we are only in the first quarter. All I can say is that we could maintain similar margin. Okay. Thank you. Next question is from the line of Raj Shah from Edelweiss. Please go ahead. Hi, sir. Am I audible? Yes, please go ahead with your question. Sir, first question is regarding the possibility of revenues in FY 2028 from the aftermarket space. Basically, the space for the platforms that we have delivered in last 2, 3 years, say, survey vessels and the earlier frigates that we have delivered. Do you see that spare revenue start growing up, say, in next 2 years, which could be a way to increase margins? You are saying that ships delivered during the last 2 years? Yes. What is the question? Yeah. On the ships that have been delivered in last 2-3 years, will the spare sales for those ships start reflecting in our numbers in next 2-3 years, which could be a reason for margin upward revision? If I can ask a question? Sure. I'll tell you that the last 2 years, 2 ships which we have delivered. One, of course, is the P17A project, we have delivered 4 ships, and the other ships we delivered also in the last year and last 2 years. And 4 of the integrated offshore craft projects. All of these projects are high-value projects, and all the orders for these ships, whether it was spares, had placed much earlier and these spare prices have increased. We did not see any escalation coming or any impact. The margins are intact. They have not been affected by any of the market fluctuations. I'm not sure I understand the question which you asked, because the question was not clear. We are making good margins from these ships, these projects. Okay. No issues. Got it. Sir, regarding this export market, do you see any new orders that you are eyeing or any possibility of orders that will be coming in the next year or 2? Yes, definitely yes. Definitely yes, because most of the European shipowners are now looking at India for the 2 reasons. One, their competition, that is China, Korea, has dampened their orders. This is one reason. And the second reason is that they have found that the pricing is affordable for them and appropriate for them, and so is the quality of the vessels. Few of the European clients are in dialogue with us, and we are very confident that in the next year or so, we should be able to conclude more contracts for commercial vessels, especially from the European markets. We are optimistic. Okay. Got it. Got it. Thank you. Thank you. The next question is from the line of Kavish Parekh from 360 ONE Capital. Please go ahead. Kavish, thank you for the opportunity. While you did highlight the order for NGC three times sometime in this quarter, could you also share more details on the likelihood of reopening for the projects, including the potential key suppliers and their respective work share? See, yes, we are executing for the contract for the NGC in the current quarter. For the next project, that is the 1TEF AC, 31 volt AC, and 13 Bravo projects, we expect RFPs to come out in the next few months. Also, I had mentioned that three of the rigs are currently live, with MPV in West Africa, and for the OPD further coast and further several rigs. We are expecting the submission is due very early next month. So when taking MPV for the smaller projects, we are still waiting to open the contract with that next time as in this one. For the large project like P71 Bravo, it's our experience with NGC is great company. So I must say. What I was trying to understand, specifically NGC program, who would be the key vendors for you for the project? It would also be helpful if you could share the electronics content within the overall program. What proportion of the program do you want to be attributable to electronics, and which major systems would this include? Given- I think I got my key understood. You are specifically asking about the NGC project with respect to our downstream vendors. In the NGC project, about 65% of the overall project cost is for the engineering systems. Of this 65%, approximately about 55%-60% is acquired by the electronics, that is the weapons sensors and associated electronics. The balance, which is around 40%-45%, comes from the machinery and systems like the propulsion engines, the APU, and associated machinery systems, and also the steel structures. The large chunk of electronics business comes from our sister PSU, Bharat Electronics. Since the field is competitive, there are few other Indian OEMs who are in the field. Does that answer your question, or do you want more information? No, it's all okay. We already started discussions with two of the OEMs for the discussion for the project. Once the contract is signed, we will be placing the downstream orders. We expect most of the downstream orders to be placed within six months of signing of the contract. Between three to six months, the customer is also involved, because for a sensitive project like this, the customer is also associated with checking the specifications are signed in. The majority of orders will be placed within six months of signing of contract. This is super helpful. Like you said, BEL will also have a role in this program. This means that once you are able to sign the contract with the customer, the contract with BEL will be placed somewhere around three to six months odd. Your contract signing with the customer is complete, correct? Absolutely. Perfect. Thank you so much, sir, and all the very best. Okay. Thank you. Next question is from the line of Harsh Mojindrani from Arrow Wealth Managers LLC. Please go ahead. You can proceed. We've mentioned that right now we are seeing good momentum. Even we have inquiries from the European companies because of our pricing advantage. Do we have enough capacity to take large orders from them, and is there a possibility to aim for even higher margins than what we have seen in the current year, which is obviously very good. Because we are globally competitive and we have good quality also, can we position ourselves as a higher margin player also going forward from the company perspective? Yes, the option is good, and current projects we have taken, which is 119, the commercial shipbuilding side. Can we follow this path with more orders and continue going for projects with higher margin and perhaps with more order value? I'll actually give you an example. If you recall, our recent results, where ID, its order value remaining is around INR 1,400-INR 1,500 crores. If you consider any of the recent projects, be it the exploration vessel or something like that, those ships are very small ships. They're quite expensive ships, and the cost per ship, if you know, when it goes to age, it almost comes to around INR 5,000-INR 5,500 crores. What I'm trying to convey is that while the commercial shipbuilding export market looks attractive, the margins are very much within war shipbuilding. What I had stated at the beginning of this discussion, INR 1,50,000 crores of opportunities are on hand. There are enough in that segment, be it the order book or profitability aspirations of the company. How commercial shipbuilding projects which are on hand, we are looking for, I think, with preference, with good margin possibilities are attractive, like offshore hybrid platforms or hard cases with complex configurations, which are challenging as well as attractive. Answering your question, Harsh, yes, we'll be going in for commercial shipbuilding projects. You will see a few of them coming in the next year also with reasonably good margins. Otherwise, we would not go in for any project, especially when we are concerned with commercial shipbuilding exports. Got it. Thank you. Just one more question I had. I understand now with commodities prices increasing, et cetera. I am assuming we would have an arrangement with clients for cost pass through. Just wanted to make a sense that is there any delays in general that we see with respect to these cost pass throughs or these associations happen simultaneously on a monthly basis? How does it work on ground? Thank you. Yes, there is a situation or the escalation with respect to cost of commodities that has been an impact. So has there been an impact with respect to Now, coming to the cost factor, all the projects that we are executing, we have factored this and orders were placed much earlier. So cost escalation with respect to the existing orders that we have got are on the increase. The time delays are marginal because what we have seen is that where minor delays with respect to steel or the offshore jacks which are going towards the foundations and other such, there is a marginal, very marginal insignificant impact, which we are able to absorb in the overall scheme of things. Also, new contracts which we are executing or where we are bidding, we factor this aspect of uncertainty also. In the existing contracts, just to say, all the contracts are fixed price contracts, and so are ours with our subcontractors or vendors. So there is no impact as such. Got it. Thank you. Thank you. Next question is from the line of Rahil Sissani from Credit DL. Please go ahead. Yeah. Hi, am I audible? Yes, you are audible. Please go ahead. Good afternoon, everyone. Thank you for this opportunity. I have a specific question regarding the ASW vessels. Are we still left with some equipment fitment on those vessels, the ones that we have commercialized, especially as I believe without complete fitment post-delivery, we do not get the PBG amount back, which I believe is some 10%. From what I know, we were left with a sonar installment. Can you repeat please? I didn't get the question. ASW vessels, client is somebody, war vessels. So a few that we have commercialized and that are in the water as of now. I believe that without fitment of all the equipment on it, usually the government doesn't give us the PBG amount, which is usually From what I know, we were left with the installment of the sonars on those vessels. Since you asked a specific question, I'll try and give a very clear answer. The stage payment for the naval projects as per the Defence Acquisition Procedure are absolutely clear. About 15 stages of payment. The 14th stage payment at the time of delivery, and the 15th stage that is the final stage coming after one year of delivery. To answer your question specifically about the sonar, there are 2 types of sonar in this ship. One is a fixed sonar, hull-mounted sonar, which will remain installed. The variable sonar, which is a development item, is acquired from a supplier. We are not giving non-availability or availability of such items since there is no financial impact with respect to the bank guarantees or PBG performance bank guarantee. Got it. That's very clear. From what I understand, it's in the development stage maybe, and we haven't installed it yet. Hence, there is still no financial liability or anything of sort. Exactly. Got it. With the upcoming NGC and the NGOPV, do they also have a similar sonar profile to the ASW, both surface as well as underwater sonar? This is confidential information. We are asking the Ministry of Defence that one. Even like that also, you know. Got it. But maybe if you can share at what stage of development is this sonar that we have to still work on or do we see that adding further delay? I put the similar question to the ministry. Got it. Thank you. Thank you. Thank you. Next question is from the line of Sunil Shah from Share PMS. Please go ahead. Yeah. Sir, thanks for the opportunity. Sir, I missed a few points early on. What I understand is that the P17A is broken up in 4 and 7. There are other big ship size orders you mentioned, INR 3,000 crores and INR 55,000 crores. I believe those order announcements could be scheduled in FY 2028. Sir, the order and the breakup, could you kindly just repeat it for me, please? I just missed that. Thank you for this question. In P17A, the total number of ships is 7, and as the AoN is ordered by the Defence Acquisition Council, this is a public information. The split between each shipyard, that is 4 and 3. The L1 will get 4, and L2 will get 3. Those are the two projects. This is the mine countermeasure vessel project. It is a 12-ship project. The AoN value is around INR 50,000 crores, and it is split between two shipyards. First L1 shipyard gets 8 and 4. Coming to the LPD project, the order AoN as per the memory goes is around INR 55,000 crores. This is a 2 plus ship. These are the two big items. Right. Thanks for sharing this. This would be shipped by FY 2028. My context is with your tenure. Would we all hear this great news whenever it certifies from your kind self in FY 2028 itself, or how does it work? I just want to know that. First of all, I am glad, sir. 50-50, you may have to ask again. First part, we expect the RFP for P17A to come out in the current quarter, and the RFP for the other 2 projects will come quite in the next year. If the RFP for the 70-75 ships comes out in the current financial year and the contract is given at only at the end of the current financial year, that is FY 2024. Going by the DAC, coming to the project in the next financial year. Yeah. Sir, about your tenure in the organization, sir. You are there this financial year as well as the next financial year, or the pattern would be for 3 years? I actually did not get it. Sir, your tenure in the organization. So you will be associated with the project even in FY 2027 and in FY 2028 as well? Yes. Definitely, yes. Yes. Thank you so much, sir. Thanks a lot. Thank you. Thank you. Ladies and gentlemen, we will take this as the last question for today. I now hand the conference over to the management for their closing comments. Thank you. Thank you, Concept, for arranging this conference. It was an interesting session, and we had few interesting queries during the session. As usual, I look forward to the investors and the analysts meet, and looking forward to interacting with you all after we announce our results for the next, that is Q1 FY27. Thank you. Thank you, sir. On behalf of Garden Reach Shipbuilders & Engineers Limited, I thank you for this conference. Thank you all for joining us, and you may disconnect your lines now.