Q3 25/26

Jan 28, 2026

Quarterly report

Summary

Q3 revenue rose 49% YoY and PAT 74%, with five major platforms delivered in 9M. A large defense and commercial pipeline supports growth, while capacity expansion and competitive tender wins remain key conditions.

Good evening, everyone. I am Gaurav Gidhar from Concept Investor Relations. I welcome you all to the analyst meet of Garden Reach Shipbuilders & Engineers Limited, to discuss its Q3 and nine-month FY 2026 results. We have with us today Commodore P.R. Hari, Indian Navy retired, Chairman and Managing Director. Sri Niranjan Mukund Bhalerao, Director of Finance and Chief Financial Officer, and Sri Sandeep Mahapatra, Company Secretary and Compliance Officer. Please note this conference is being recorded. I would now like to hand over the floor to Commodore P.R. Hari, sir, to give his opening remarks. Sir, over to you. Thank you. Thank you, Gaurav. Once again, good afternoon, ladies and gentlemen. It is indeed a pleasure to be here with you today, and I eagerly look forward to this particular meeting, which we have once a year, when we interact with you all in person. Thank you all for attending this conference to discuss our financial results of your company for the quarter ending 31st December 2025, and the nine months ending 31st December, and also to provide you a glimpse of the future outlook. As I normally do, I shall first touch upon the financial highlights, then provide you all an overview of the physical performance that has translated into this financial performance, then touch upon the current order book status and also an update on the projects that we are currently executing, and then give you a glimpse again of the future outlook and also our expansion plans. Coming to the financial performance. Yes, Q3 has been a good quarter for all of us, and the results have been encouraging. Our revenue from operations year-on-year has gone up from INR 1,271 crores to INR 1,896 crores. That is registering a growth of 49%. All the financial parameters coming down to the bottom line, our profit after tax has moved up from INR 98 crores during the last, that is Q3 FY 2025 to INR 171 crores during the recently concluded quarter. That is registering a growth of 74%. If you take the nine-month period, I will just put things in perspective. Our revenue from operations so far has been INR 4,883 crores, and if you compare the FY 2025 revenue from operations was INR 5,076 crores. We almost touched that figure in a nine-month span. On the whole, Q3 and the nine-month period has been interesting, good, and I can assure you that better times are yet to come. This financial performance is, of course, obviously the result of a strong physical performance. Again, to place things in the right perspective, we have delivered five major platforms, that is ships, during the last nine months. That is the first nine months of the financial year, and that is translating almost a ship every two months. These include one frigate, P17 Alpha, three Anti-Submarine Warfare Shallow Water Crafts, and one Survey Vessel (Large). The way the projects are progressing, we intend delivering three more major vessels in the next three months. All the major projects are progressing satisfactorily, I should say. I will just give you a glimpse of the ongoing projects, and before that, I will touch upon the order book. Our order book position as of December 31st is INR 18,482 crore. Interestingly, this is the first time we are dipping below INR 20,000, which is good news for you, which means our execution rate has picked up. I have been attending investors meet. This is the 13th quarter since 2022. I think we did the investors meet, of course, in virtual mode sometime in April 2022. So this is the 13th quarter on a trot where we are showing year-on-year growth. I mentioned the order book position is INR 18,482 crore, and this comprises 10 projects consisting of 42 platforms. These include four projects of the Indian Navy, the P17 Alpha projects. We have delivered one of the three ships, and two more ships are under construction. The second ship has almost touched 93% physical progress, and we intend delivering the ship in the next three months. That is one of the ships which I mentioned that we will be delivering in the next three months. The third ship of this project is on track, and this calendar year we will be delivering the third ship. Coming to the next project, that is a Survey Vessel (Large) project. It is a four-ship project. Three ships have already been delivered, and the fourth ship almost touched about 92%, 93%, and in the next three months, in April, May, we will be delivering that platform. The other four ships of the project are on track, and we intend closing this contract during the next financial year. Coming to the fourth naval project, that is the Next Generation Offshore Patrol Vessel project. It is moving on track. The deliveries will start from 2027, that is financial year 2027-2028, and culminate, it is a four-ship project, and culminate in financial year 2028-2029. So far, the progress of the project has been good, with the first two ships having achieved almost 60% progress and the next two, about 45% to 48% progress. In addition to these defence platforms, we are also executing one project for the government of West Bengal. It is a small project, but very interesting project. That is for hybrid ferries. It is a 13-vessel project, and two different sizes, seven ships of 100 passenger and six ships of 200 passenger. We will start commencing the delivery during this financial year, that means the coming financial year, with the first two vessels will be delivered during the first quarter, and that project will be closed during the first half of FY 2028. We are also doing three different projects of research vessels. One an ocean research vessel for the Ministry of Earth Sciences, project moving on track. Around 20% physical construction has been achieved. The targeted, that is the contractual delivery, is during the financial year 2027-2028. Well on track. An acoustic research ship for the Ministry of Defence, that is the DRDO, a Kochi-based lab of theirs. Project on track. The production has already commenced. The delivery is during the financial year, again, 2027-2028. And two coastal research vessels for the Geological Survey of India, that comes under the Ministry of Mines, interestingly. This project will be completed during calendar year 2027. That means the first half of FY 2028 will close this project. In addition to that, we are also doing two export projects. One, a small project for the government of Bangladesh. It is a 1,000-meter cubed dredger. On track so far. We are crossing our fingers. So far, there has been no red flags. The stage payments are coming in, so nothing for you to worry as of now. This project will be completed during the third quarter of financial year 2027. We are also executing a project for 12 multipurpose vessels for a German client. I think last time when we met, we had a contract of four of these vessels. Then after seeing our performance and inspecting our site and the progress, they increased to eight. As of now, it has been increased to 12. So this 12-ship project is in hand. We have done the keeling of two of these vessels, and the third ship keeling is planned later this month. Project on track. The delivery of the last of these vessels, the deliveries will commence during the second quarter of financial year 2027, and will stretch to financial year 2029. So it is a cyclical long-drawn project. This is the status of the ongoing projects that we are executing. To give you a glimpse of what are the orders, what we expect, and what is likely to come out in the near future. As you are aware, last time, again, when we met, I had mentioned that we would be bidding in such a fashion as to win the Next Generation Corvette order. Yes, we have won it. We have become the L1, and it is a big project. It is a five-ship project amounting to approximately INR 33,000 crores. The price negotiations have been completed, and the contract negotiations are in final stages. It requires certain approvals. But we are confident of this contract getting concluded during the current financial year, which means next month we intend closing this contract, signing the contract with the Indian Navy. They have also indicated that the approval process is well on track. Which means we are hopeful and confident of ending the current financial year with an order book around INR 50,000 crores. This is what is assured. In addition to these orders, what we are executing and what is on the anvil, the Navy and Coast Guard have already obtained approval of necessity from the Defence Acquisition Council for seven projects. These include three big-ticket projects. One is the P17 Bravo project. It is a seven-ship project, approximately INR 70,000 crores is the AON amount. It could be around that, maybe marginally higher. Again, to be split between two shipyards. Then the LPD, Landing Platform Dock. It is again a big project, attractive project, which has been lingering for a very long time. So the AON has finally been accorded, and the AON value could be to the tune of around INR 35,000 crores. The third big project is a 12-ship Mine Counter Measure Vessel project, eight and two, eight and four. Eight ships for the L1 shipyard, four ships for the L2 shipyard. This, the AON value is around INR 32,000 crores. So in addition to these, there are other smaller projects, but all put together, for the projects where AON has already been accorded, and where we expect the RFPs to come out from now, which means something could come out in the next month onwards for the next 12 months, is approximately INR 155,000 crores. Of course, none of them are on nomination basis. These are all on competitive bidding, but the pool of competitors is limited. We have confidence in winning at least 20% of these orders. Keeping the P17 Bravo project, what I mentioned, the biggest ticket item among these, there we stand an edge because we are already executing the P17 Alpha project. We have the design, we know the equipment manufacturers, we know exactly how it functions. So like what I assured you last year when we met physically, this year my care is to win the P17 Bravo project. So let us see. This is only for the defense segment. Now, on the non-defense segment, as you are aware, the government has already promulgated, publicized a slew of initiatives. One important thing for all of us is that, for the first time, they have aggregated the demands of the government entities, that is ONGC and such agencies. That demand alone is available in open media. It is coming to 207 platforms, starting from smaller size, platform support vessels to VLGCs and beyond. So a conservative, very conservative, value of these projects could be plus INR 1 lakh crores. Naturally, they will come out in a staggered fashion. Two tenders are already out, and one EOI is already out. Two tenders for platform support vessels and MR tankers are live as of now. One expression of interest for the VLGC is also live. This is moving, but of course, the pace at which the other orders, what I mentioned on the defense segment, perhaps could be faster. Here, the competition pool is bigger, so that we are all on the same page. All in all, the defense segment and the non-defense segment put together, if I am adding the non-defense segment in the next 12 to 18 months, we have around INR 2.5 lakh crores plus on the table for us to get a substantial chunk. Now, having said this, now the demand is good, but what about our capacity to handle this? We are good to handle the defense projects because we have been brought up, groomed, nurtured in that fashion. Now that the market has opened up for the non-defense segment, especially for large platforms, I repeat, we had a constraint, we still have a limit. We have de-conflicted the situation. The constraint has become lesser. With this in mind, what we have done is we have systematically increased our production capacity. Two years back, we had a capacity to construct 24 platforms concurrently. Today, that is in 2025, we increased it to 28 platforms. That is big and small and medium size put together. With the ongoing modernization that we are executing, by the end of this calendar year, we intend enhancing this to 32 ships. But this also will not be adequate to meet the demand that is existing. So within our confined geographical present confines, we will not be able to meet this requirement. And it is with this intent that we intend growing out of Kolkata first, and thereafter out of West Bengal. Just to give you a glimpse, some of them are in liquid form, some of them already action has been taken. We are going in for brownfield as well as greenfield expansion. As far as brownfield expansion, three sites we have taken over from the Syama Prasad Mookerjee Port, in addition to what we had earlier. Of them, two of these sites, we have physically started the modernization activities to get them to production level readiness. The third site, the negotiations are in final stages, and we already engaged a consultant for the DPR. This brownfield expansion, we are good to go. With two of these facilities, we will be able to commence production by end of the calendar year. The third facility, which is a bigger facility, we expect the production to commence there after the modernization efforts are completed in a span of 2 years. This is what we are planning within West Bengal, but even that is not good enough. We have moved ahead with the finalization of sites. Two sites in Gujarat, one in Kandla and one near Bhavnagar. One is with a government entity. We are partnering a government entity for the Kandla site, and a private entity for the Bhavnagar site. For the private entity, we already engaged a consultant for finalizing the DPR. For the second, that is with the government entity, they have engaged a consultant already. This is where it stands. These two facilities will take a finite time for getting production ready. Our conservative estimate is 3 years from now, and this should meet the demand for large size platforms, both in India and for abroad, because we are getting a lot of queries from abroad, we are not able to meet as of now. Our long-term plan is to get these facilities up and about so that the demand which is coming from within India, definitely, and what is coming from abroad, we can meet. In addition, what we are currently doing to offset the capacity constraint is what we started about 5 years back or 6 years back on a public-private partnership model, where we want to test the system. At that point of time, a private shipyard had spare capacity and we had excess load. We outsourced a part construction of these vessels. Believe you me, that model has been successful, and we have been able to, of the 7 platforms which we had offloaded in partial or 75% construction, we have been able to take out 5 of them. In addition, this is a big player, private player. In addition, we are also engaged a business relationship with a smaller shipyard, and 2 of the ships we have taken out from there. What we are doing currently to offset the capacity constraint in terms of building certain types of vessels, we are following a PPP model. I think I've covered the financial performance. I've just given you a glimpse, then the status of the order book, order book position, and the status of the orders, what is expected, and what is our plan to address the huge demand that is existing. As I mentioned, just some of my interaction, not interaction, actually conveying the address or whatever you can call, that the year so far has been good, especially the last quarter. But as I mentioned, the better times are yet to come. Thank you. I am open for questions, all your queries. Thank you, sir. We now open for the question and answer session. We would request the participants to please introduce themselves and ask the question. We would request everyone to limit their questions to 2 so that we can address everyone's queries. Thank you. One may take a second. What our Director of Finance was mentioning that I missed talking about the initiatives which the government has promulgated already, and some of them are active, live as of now. The various schemes for incentivizing or revitalizing the shipbuilding segment. The total financial outlay, what they have provided is about INR 69,725 crores divided into 2, 3 pillars. The first is about the Shipbuilding Financial Assistance, is a very attractive scheme, where certain kind of platforms which are constructed in India, based on the type of platforms, get incentivized subsidy ranging from 15%-30%. It is a very attractive scheme, and that amount, what has been earmarked for this is INR 24,736 crores. In addition to that, the government has also promulgated an attractive scheme. Again, it is a very interesting scheme. It is called the Shipbuilding and Shipbreaking Credit Note. The funds allocated for that is the INR 4,001 crores. Again, what is interesting is that if any of the ship owners break a ship in India, and he gets a credit of 40% of the amount realized from the breakage, and this gets parked, transferable, and when the company, business owner, builds a ship in an Indian shipyard, he can utilize this credit. So one way it is very good for the shipbuilding ecosystem that whoever is breaking, because people are looking at India as a shipbreaking hub also. So we are coaxing them to come to India and binding them in so that they avail this credit facility. In addition to this, they also come out with a INR 25,000 crore scheme for a Maritime Development Fund. This scheme caters for brownfield expansion, wherein a certain percentage of the investment you made towards brownfield expansion is subsidized by the government. Also, around INR 5,000 crores has been earmarked for an interest incentivization policy. So here, the interest is unfortunately very high, and none of the ship owners are able to afford that kind of interest. So 3% interest subsidy has been provided. This scheme is also active. The last, of course, is development of maritime clusters. So there again, the third, I think I have covered 25,000 plus 24,000. So whatever is remaining out of the 16,000 that has been earmarked. My memory is right, it comes to about 29,000, I think. So that has been earmarked for INR 19,989 crores has been earmarked for development of shipbuilding clusters, where greenfield facilities, once you set up, you get up to 50% subsidy. So these schemes are very interesting, and we, including the activities which I had mentioned, that in two areas, we have commenced the brownfield expansion. We will definitely be leveraging these schemes of the government, including the Shipbuilding Financial Assistance Scheme. Thank you. I am open for your questions, please. Thank you, sir. Good evening, sir. Here. Anybody. Hitesh Chaudhary from ULJK Financial Services. So my first question is on corvettes. So if you receive this order by this financial year, what is your execution cycle? My second question on P17 Bravo, at what stage the talks has been came? Thank you. The Next Generation Corvettes, yes, if we conclude the contract during the current financial year, the first phase is the pre-production phase where the design activities are progressing. Based on the design activities, the equipment procurement actions commence. As far as you are concerned, the revenue accrual will commence 2 years down the line, which means if FY 2026 end, we are concluding the contract, FY 2028 end, that means the fourth quarter of FY 2028, we can expect revenue accrual. Is that what you meant to ask? Yes, sir. The second part on the P17 Bravo, as I mentioned, the AON of the Defence Acquisition Council has already been accorded almost 6 months back, and it is moving very fast, because this is a project which Navy really wants to go, and there was, at a point of time, a thought process for giving a repeat order, but that did not fructify. So Navy is very keen on this project, and I expect the RFP to come out, let us say, in April. If April, the RFP come, I'll give you further RFP is expected to come out in April, then the bid submission time and all. Akin to NGC, we expect the contract for P17 Bravo to be signed maybe February, March 2027. This is where it stands. Okay. I think they have muted your mic, sir. You must be. Yeah. Sir, first of all, thanks for meeting, as usual, every year, and as usual, increasing the order, except this year. Sir, some time back, we had an MOU with Swan Defence, and we do not know anything about what is the. Kindly elaborate on that Swan Defence. Recently, few days back, you have a tied up with Hindustan Shipyard. What is the position for these two entity? You said except this time order book, but I can assure you, I know. by end of the financial year, we will surpass. Cumulatively over last 3 years last 3 years. Yeah we will be able to touch that. Having said that, yes, we have a live MOU with Swan Defence. The intent of this MOU was for bidding and executing large platforms, the platforms which we cannot handle at our premises. So we are in discussion with a couple of foreign owners for vessels above 250 meters length. As you fully would appreciate, some of these negotiations take as long as one year, the contract discussions, some tender conditions, not tender, the contractual conditions, something which we don't agree. We are in discussions with them. The MOU is very much live. We expect this to see light of the day, translating into an order in the next financial year. So it is live. Coming to HSL, we have signed a consortium agreement with them, an MOU with them very recently. This is with an intent to put our hat in the ring for the LPD project. Because we, as GRSE, purely because of the dock size, we would not have been able to bid for that. So with this MOU, we will be able to bid, because you may be aware from the media reports that Swan had an MOU signed with MDL for this project. Yeah. The moment we realized that we didn't want to miss the bus, we got hold of HSL, and with HSL, we have signed an MOU. It's a good, let us say, way ahead for both the shipyards, our expertise and their infrastructure availability. It will benefit both the shipyards for the LPD project. That is the intent why we went in for that. And sir, regarding the platforms, we are moving from 24 platforms to about 32 within next one year. Sir, any outlook for next three years where we would like to be to justify all the orders? Okay, sir. As far as these platforms are concerned, yes, by the end of this calendar year, we'll be able to get it to 32 ships concurrent construction within our own premises. And I had mentioned in passing that two of the brownfield facilities in Kolkata, we already started the revitalization process. We expect that to be put to operation from end of this calendar year. I'm keeping a conservative figure. As far as the shipbuilding capacity is concerned, we should be able to get to around 35 ships by end of 2026. That is in this year by end. But the order book, did you want to know about this or the order book? No, platform and order book. Order book. This year, if we are ending with INR 50,000 crores, and with next year likely to be, next financial likely to be one of our peak years with respect to revenue. You consider drop plus the P17 Bravo. P17 Bravo also, I would like to go conservative at this stage. That hypothetically, if GRSE becomes an L2 shipyard, the order book order value is likely to be to the tune of around INR 30,000 crores. If things go on well, we would like to look at ending FY 2027 with an order book plus around INR 70,000 crores. Okay. I would like to go only up to there, sir, then we will see. Okay. Next year you can ask me, sir. What about margins? Orders are not at the cost of margin, I assume. None of these, what I just discussed, none of them. Yes, we have taken a few orders at very low margins. That was for sustenance and entry. I will give you an example. There was a point of time when we were not sure about the NGC project, so we had to take a couple of orders to sustain, so we had taken them at low margins. I do not know whether you remember or not, the first ferry project that we took, the electric ferry project that we took, very small project, but we took it that actually we subsidized the project. It was to make an entry. But right now, having consolidated our position in both the different shipbuilding as well as to an extent in commercial shipbuilding, margins will be, let us say, healthy. Order book enhancement will not be at the cost of margins. I think that answers your question. And sir, regarding next 2 years, FY 2027, then FY 2028, is landmark INR 10,000 crore executable? FY 2028, INR 10,000 crore. This year, okay, I will put it. Last 5 years, we have been able to provide a CAGR of around 25%-plus. Right. This year, I think in my opening statement, I had mentioned that in 9 months we have touched INR 4,883 crores. This quarter is also going to be healthy. With that, again, we'll be able to provide a CAGR between 25%-30% this financial year. Next financial year, that is FY 2027, is going to be a peak year because that is when one P17 Alpha would have just come out. Maybe by April means we'll get a substantial amount there. But the last one will definitely come out during FY 2027. So 2027 is going to be the peak year. I'm putting in a roundabout fashion, but that is it. Okay. Thank you. Yeah. Hi, sir. This is Harshit from Elara. Could you please give us an order book breakup in terms of the ship-wise order book breakup? I have to turn this down somewhere. Yeah. I had mentioned. Our total order book is at INR 18,482 crores. Of this, still P17 Alpha takes the major chunk. It's around 46% at INR 8,236 crores. Survey Vessel (Large), INR 343 crores, and the ASW Shallow Water Craft, INR 2,559 crores. The OPV project, INR 3,136 crores. So from the defense segment, it is INR 14,276 crores. That comes to around 77% of our total order book. The non-defense segment, the ocean research vessel, acoustic research ship, the coastal research ship, and the West Bengal ferries, put together it comes to about INR 900 crores, INR 897 crores. The export, both the projects put together come to around INR 1,481 crores. The defense segment is contributing about 77%, the non-defense segment around 18%, and the balance 5% is from the other smaller verticals like the portable steel bridges, the diesel engine plant, the Naval Surface Guns, as well as the ship repair. Ship repair, we started with point something percentage when we started. Now we have crossed 1%, and it will keep increasing because we were initially testing waters with ship repairs, but now we are good to go. This is our order book breakdown. Thanks for sharing, sir. Just an added question here. Just in the order book, which you mentioned at the year-end that you want to reach INR 70,000 crores, are you assuming- Fifty. This year on 50. But next year will be seven- Next year is based on an assumption that we are getting the P17 Bravo. P17 Bravo, at least as the L2 shipyard. If we get that, then that is a figure which would automatically arrive at. Right. But in history, sir, we haven't seen any tender in shipping which has come out and got awarded in a year's time frame. Look at the NGC order. Is there something that you can tell us that progress has been very good or it's the extension of the earlier order, so the timelines are much lesser? Okay, I'll explain. You are absolutely right. There was a time when the tender used to come, then it used to take 1 and a half years. We also experienced, like the OPV tender. From the time L1 declaration to contract signing, it took 1 year. We got declared in somewhere 2022, 2023 we signed. You see the NGC project, the tender was out in August, the L1 was declared in October, and now we are almost good to go. You are- Definitely there is an improvement because there has been a total change in the way, at least my ministry is pushing the cases. Again, I would like to reiterate, if the RFP comes out in April 2026, then the contract signing would happen in the next financial year. Okay, sir. Okay, that's a good news. Sir, third question is just on the tie-ups which you have done, one with Swan and the other with HSL, Hindustan Shipyard. Who will get the technology, sir? As in, we have to look at foreign companies for a tie-up for getting technology, either on the commercial side or on the LPD side. Because who will be getting the technology? That remains the key. You got the deck, now you got the capacity, but where will the technology come from? See, as far as the medium-sized platforms or less complex platforms like what we are doing or what is being currently executed by the Indian shipyards, there is no need for a technology partner. But like Cochin is building certain hybrid vessels, they do not need a technology partner for that. My vessels, what I am building or what India is building, we do not need a technology partner. We are fully good to go. But for the LPD project or the VLGC project, the VLGC EOI conditions itself stipulate that an experienced and proven VLGC manufacturer, so we got to collaborate with perhaps the Korean company who has built. So there would definitely be a need to collaborate for the design of a VLGC. And there again, the positive aspect is that naturally it cannot go on forever. That could be for the first project. For the next project, the Indian company, Indian Shipyard, whoever is doing it, will have competency. Similarly, for the LPD project, because it is a complex project, there would be a need for a design partner, which we have identified together along with our partners. Okay. Thank you, sir. Thanks for answering all the questions. Thank you. Sir, Ashok from Eklavya. Sir, we have done two tie-up with Hindustan Shipyard and Swan. Yeah. Are we through the requirement of next 5 years with the two tie-up or still we are prospecting much bigger than this? See, these tie-ups are with the specific intent. The intent of having a tie-up with Swan's intent is, because it is still active, is to handle large size commercial vessels, which we cannot physically handle, purely because of infrastructure constraints. I mentioned that a couple of foreign projects are still in liquid form. Discussions are in progress. As far as HSL is concerned, it is with an intent to qualify us and use our expertise, their facilities for the LPD project. There would be a time. I had more or less stated our expansion plan, though I have not given the capacity in terms of size of dock and all this stuff. But once we develop this capacity, which will take a finite amount of time, let us say 3 years, for a full-fledged operational readiness, 5 years, then we would use these partnerships only to supplement them. We may not need them because of capacity constraints, but if we get excess load, we can utilize spare capacity of other shipyards. Right now, these are specific to one for Swan for large size commercial vessels, and with HSL for LPD and similar platforms. Are we looking at still some tie-up? At this juncture, no. Not bigger size? No. No. At this juncture, no. I am talking about bigger size only. See, in India, there are shipyards which capacity, infrastructure capacity. One, Swan has got the biggest dry dock available. It is around 650 meters. L&T has got certain capacity, which is slightly more than us with respect to size of ships, not number of platforms. I am only speaking about size. And of course, HSL. So we already have tie-up, one active with L&T, which we are not tapped so far, one with Swan, and of course, with HSL, what we mentioned. Nothing NCLT or Bharati Shipyard or something like that? Nothing like that. NCLT, any projects or no? No. Nothing like that. Because what is available in the yards which have either undergone NCLT or which is still. See, they are just not adequate to meet the expectations or the requirements. No, absolutely no. Thank you. Thank you. Hi, Souvik. Amit Anwani from PL Capital. First question on the capacities, which you said, from 2024 to 2028 and 2032 and by end of this CY, 2035. Plus the two capacities you said are probably in Gujarat. First question is, will the Gujarat capacities will be jointly developed? And with that capacities, plus 35, what would be the number of vessels we will be able to produce? And you said 3 years, I think, for Gujarat, at least. Three years, it is a very optimistic figure. Again, for creating a shipbuilding facility, one is putting it to operation. We can start manufacturing. But for a full-fledged facility which has got end-to-end capability, which means starting from plate cutting to ship launching to delivery, I am talking about large size platforms, it takes three to five years. I have gone this side of the three to five years band so that the production can commence there. If you take a mid path of four years, let us say four years, for both these facilities to come up. Then in that case, we would be having a capacity to build around 12 ships in these facilities, large size ships. That is the aim. Ultimate aim is large size ship, VLGC or above. Around 300 meters length vessels, 12 of them between these two facilities, while utilizing the existing facilities for the weapon, that is defense platforms and the smaller multipurpose vessels and so on. 12 vessels is what we are targeting in these two facilities, large-size vessels. In a span of, I put a band of three to five years. That is all I can say at this moment, because the DPR is still not confirmed. It is not yet out. We do not know the real timelines, but based on our experience, it could be between three to five years. That. In terms of pipeline, which you highlighted, INR 1.5 lakh for defense and about INR 1 lakh for non-defense, what is the number you are looking for yourself in line with the capacities you are creating? Cumulatively, what is broad number or conversions you are looking for in next two, three years? See, this mix of seven projects, I do not think I mentioned the seven projects, I just highlighted three of them, big-ticket items. These seven projects alone comes to INR 155,000 crores to be exact, 52.5 or something. These comprise large platforms like P17 Bravo, the LPD and the Mine Counter Measure Vessels, plus smaller platforms like interceptor boats and fast interceptor crafts, and water jet interface. They are very small platforms, maybe 50 meters, 35 meters and so on. These can easily be handled with the existing facilities or through a partnership yard. In a nutshell, with the current capacity, what we have or what we are going to have by end of this year, the projects which I am only speaking about this INR 155,000 of defense alone, we will be able to handle if we get P17 Alpha and around 20% only of the balance projects. Coming to the other segment, that non-defense segment which I mentioned, approximately about INR 1 lakh plus crores, they contain large-size platforms. For that, at this juncture, we may not be able to handle them within our premises. It is with that intent that we are getting into partnership with a couple of shipyards. When our facilities come up, let us say, in 3 to 5 years, again, around 15%, because here the pool of competitors is large. Unlike defense manufacturing, here the pool of competitors, it could range from the public sector shipyards to 3 or 4 private shipyards. Considering that, I am keeping a very conservative figure of around 15% of these orders at this stage directly, and the rest through the collaboration with others. Sure. You mentioned about the outsourcing models. I just wanted to understand, in terms of capability building for you and the volumes of orders you are looking for, what is the indigenous component now? With the new book, massive orders coming in, will it require some imports? You can highlight on all this aspect in terms of capability building for the upcoming book. Yeah. See, as shipbuilders, we are primarily platform integrators. The customer, be it a private customer, domestic, abroad, or a defense customer, in 90% of the cases, 95% of the cases, they indicate, they say, "I need a platform," let us say a frigate, or if you go to the commercial shipbuilding segment, they say a multipurpose vessel. They indicate the equipment. To the extent of private players, they say, "I want so and so engine from so and so manufacturer." In case of a defense system, they say, "I want so and so engine from one, two, three manufacturers." One of the three manufacturers. A weapon system from so and so and so. Therefore, as platform integrators, our responsibility is to get the best commercially beneficial for us and also meeting the customer requirements, one. But the government trusts very much on indigenization. We play a major role in promoting Indian entities who are into indigenous manufacturing. Having said all this, the indigenous content of the three projects that we completed in the last 5 years, completed mean done and dusted, it is plus 85%. The balance 50% so far is comprising mostly of the propulsion package, where India still does not have the technological maturity yet to do a fully indigenously developed marine diesel engine, marine gas turbine and weapon systems to an extent. This is where that 15% gap is coming. Again, on a positive note, the government is very serious about indigenization. Already you must be aware of these schemes called Make-I, Make Two, Make Three and so on. A Make-I, which means it is a government-funded project to incentivize the indigenous manufacturers. The propulsion engines are getting indigenous, but we as a nation must have patience because it takes a finite amount. It does not come like a switch on. It will take 3 to 5 years for a product to get developed. When that gets developed, naturally, the indigenous content will increase. As our weapon systems are concerned, there is a tremendous improvement in the indigenous content in the weapon systems. I will just give you an example. When we got into this Naval Surface Guns, we got into the Naval Surface Gun project about a year and a half back. We had to collaborate with a foreign partner, that is to make entry into the market, and an Indian firm. Around 10 Indian companies are involved in the component manufacturing as of now. It is a success. 60% plus indigenization has been achieved. But we had the patience, and so had our customer, that the Navy had the patience. So that is where we stand today. Sir, lastly, on the recently released draft DAP 2026, what is your understanding in terms of implication for GRSE and the shipbuilding industry versus DAP 2020? DAP 2026, as it would be called. Yes, after a lot of consultative discussions over the last one year, finally, the draft is now open for all of us. They have sought comments from all of us, including the general public. It focuses definitely, just carrying this point what you mentioned on indigenization. Indigenization and indigenization incentivization would be a major part of this DAP, and little more flexibility for public-private industry entry into defense manufacturing, and also for public-private partnership. So let us see how it finally pans out, because now that it is open for everybody to comment, so India, being a democratic country, it will take a finite time for it to get finalized. Hello. Hi, sir. Vikas from ISAC. Just one question. Do we run a risk of commodity price inflation eating up our margins? Commodity price increase has got minimal impact on our margins because, in our case, in a project, if you take 100% as a project cost, around 65% come out of equipment, most of this equipment being customer-nominated or in a pool of customer-nominated band. Fluctuations really don't affect because they all would have been finalized at the commencement of the contract. Then comes the yard material, like steel. In case of steel, which is a major component of our shipbuilding industry, we have tie-ups with most of the major steel manufacturers, including MOUs with the biggest manufacturer in India, SAIL. The impact is minimal. Yes, there is an impact, but the impact is very minimal and logically should not have any impact on the margins. Hi, sir. Here to your right. This is Raj Shah from Enam Asset Management. Sir, my question is, a few months ago, we disclosed an MOU with Andhra Pradesh Maritime Board for another greenfield facility. Can you please help- We are fishing. We were fishing. Okay. Thank you. What I meant by fishing, we were fishing at that point of time. We were touching base with Gujarat, we were touching base with Andhra Pradesh. So finally, we homed. The first action was to show our intent. That is why we concluded a series only to show intent, yes, we are there. Then we backtracked because we found it was not required, having identified two other locations. That is the reason. Hi, sir. Dipen Vakil here from PhillipCapital. Sir, my question is, we spoke about that FY 2027 could likely be a peak revenue recognition year for us. So what are we looking at? Do we think that FY 2028 would more likely be a plateau year and then growth can continue when NGC comes in as to how we can look though? Or there are chances that revenue can come down a little bit before we start escalating again? It is an interesting question. Yes. With 2027 being a good year, a peak year. See, when somebody had asked about the order book balance position. So like for example, P17 Alpha had mentioned that the order book balance INR 8,200 and odd crores. In this INR 8,200 and odd crores, X percentage, a small percentage, not so small, it is 10-plus percentage is for the base and depot spares, which are required for sustenance of the ship through the life cycle. And similar figures factor in every project. So when we complete a project, the revenue accrual would be limited to the amount balance order book minus the base and depot. Base and depot runs independently. Independently as in we have concluded contracts with most of them. But these deliveries could be after the delivery is complete, which means the revenue accrual from a particular project would continue beyond the delivery date. That will give us some cushion in FY 2028. Plus all these platforms like. Let's say why we decided to take one-off projects. We had no reason, because when we had the big projects in hand, it was with a strategic intent that we went in for one-off project. They are technically very challenging, and it gives us a lot of national hype, by the way, these research vessels. Why we took them is with an intent that all these guys will come for delivery during FY 2028. Most of them are coming up for delivery. Multipurpose vessels, a series of them will get delivered. At least four of them, three of them should get delivered there. And yes, we need to pull back the revenue accrual of NGC. There was a question which was asked to me: When will the NGC start giving us revenue? What stops us from moving faster? We will try and avoid a plateauing out in 2027, but FY 2028. That is the intent of the management. Maybe I will be able to give you better clarity on this next time when we meet. I think that would be the right time. Sure, sir. Sir, second question is on our exports. Considering the geopolitical situation evolving now, and we are looking at a lot more procurement happening globally, what kind of opportunities that you foresee coming in and some opportunities that may currently be under discussion or in pipeline? If you can throw some light on that. See, international business, you can just segregate into two buckets. One is defense, and one is non-defense. In defense, it is mostly government-driven. It will be either through a line of credit or a G to G grant. I am just keeping that aside and say if it comes, it is bonus. Coming to the non-defense segments, today the opportunities are phenomenal. We are not able to take the orders because of collective capacity constraint. If I did not have the capacity, if somebody else had the capacity, I would have pushed it to him and partnered. The potential is huge. Most of the European countries, be it Netherlands, be it Germany, be it Sweden, be it Norway, they are actually looking at India. Most of the customers who have approached us, and Belgium, most of them whom we are engaging are all European customers. They were going to China, Korea. They are no longer taking orders for the kind of platforms which they have approached us. The numbers are large, the order value is good. I see huge potential in this, not only for me, not only for GRSE, but for all the Indian shipyards, sir. Certain Middle East countries have also approached, though we have not been able to break the ice so far, but once that break is made, I feel we will. Right now we are focusing on Europe. Sir, can you hear me? Yes. Thanks for the opportunity. Sir, I just wanted to know, when you start the Next Generation Corvette signing, will you get advance payment for that? Or how do we take it? Because in the past we had advance payments. Very interesting to see. Whenever we interact with the finance people in various ministries, they ask advance. I say, "I don't want any advance. Don't give me any advance. I want a stage payment." It is as per the DAP, there is a stage payment. I don't get any advance. I get a stage payment. To answer your question, yes, we will get a stage payment as soon as we sign the contract. There is a first stage payment with an intent to facilitate the pre-production activities, which involves design commitment, certain OEM commitment, and so on. Yes. Sir- Hello. Sorry. Just on the numbers I am talking about here. Current order book INR 18,000 crores plus. Next Generation Corvette INR 33,000 crores, which is there in front of us. Going forward next financial year, the potential opportunity is the P17 Bravo, which is maybe at least INR 30,000 crores or INR 40,000 crores, either which ways. Then we are talking about INR 100,000 crores of potential order book from the non-defense, of which may be a possibility of a 20%, which translates to about INR 20,000 crores. Then again, if we take the defense order, which is INR 155,000 crores minus the P17 Bravo, which is the INR 70,000 crores, which keeps about INR 85,000 crores. Again, a 20% possibility over there gives me another additional INR 17,000 crores. If I add all these numbers, it gives a potential of about INR 115,000 crores plus kind of an order book over a period of time purely for GRSE. Is the thought process in the right direction? How I wish. I also play with the same mindset. On a serious note, sir. See, there was a time when, before we were listed, of course, we used to take the system for granted that orders used to come aplenty on nomination. That now every order, I repeat, every order is on competition except what we work and get from the foreign clients. All these what you talked about, they are all on competition. Today the field has expanded. So, we are there. Plus along with us, my four sisters, that is MDL, GSL, Cochin Shipyard, and HSL, plus comes L&T Shipbuilding. Now they have matured. Swan Defence and Heavy Industries, fledgling, they are coming up. Plus a couple of small shipyards like Shoft, Chowgule. Chowgule, of course, may be too limited actually. Plus there is a shipyard in this place, in my city, Kolkata, Titagarh Shipyard. So the field has expanded. Theoretically, what you are telling is perfect, sir. If out of INR 155,000 crores, and if Navy gives the RFPs as what we understand that they should be giving, because their intent is very much there. INR 155,000 crores minus INR 70,000 crores. The other, of the balance INR 85,000 crores, there are two major projects, LPD project plus the Mine Counter Measure Vessel project. In the Mine Counter Measure Vessel project, it is eight and four. So theoretically, what you are telling is correct. It is purely dependent on our bid strategy at that time. I can only assure you that we would be bidding to win the P17 Bravo, because that is what will keep the company moving for another 10 years, eight years. That is a project which we will go all out to win, without compromising at all on the margins. It is a big project. With our experience in P17 Alpha, I feel we are good to go in that. Commercial shipbuilding, this INR 100,000 crores, again, is a very conservative estimate because we actually do not have the cost of some of these platforms which are going to be built in India for the first time. I suggest we just wait and watch for maybe another 6 months. The stocks on RFPs coming out has been going on for the last 1 year. So far, only two RFPs have come out in the last 1 year, plus one EOI. Let us just wait a bit and watch for the non-defense. Defense segment is more or less streamlined. Non-defense segment, I suggest just wait and watch. Maybe at 6 months, we will have a better clarity. Sure. Sir, again, the numbers on the other side in terms of the capacity, 35 is what we are targeting by the end of the current calendar year, 35 from 32, since we are refurbishing the other two locations there. Apart from that, once after 4-year period, maybe when Bhavnagar and Kandla comes into play, that will give us another capacity of another 12. Then we are looking at HSL, which is for Parassri-2 LPD, plus the very large gas carriers. That is nine in number, which is there from Shipping Corporation. There, nine is what is also the potential capacity at HSL also, apart from the LPD. Is the understanding correct here? I would like to clarify this, because HSL, if you are aware, they are already building the fleet support ships, large ships. Though they have, like us, they have partnered a shipyard. Three of these vessels are being constructed at HSL. Again, I would like to go back to my previous statement that as far as this, not regarding the capacity. Capacity, what we have said we will meet, but as far as the inflow is concerned, for the non-defense segment, we should just wait and watch for a while. Sir, I think waiting and watching is right from the IPO days that we are all here, so that's not a problem. It's just about the conversion of all this potential into numbers. Waiting is something which maybe majority of us can easily do. So far, as you rightly said, from the IPO days, you have been waiting, but you are seeing the results today. Undoubtedly. That's not the point. The point is about the patience. I cannot comment on what comes from the non-defense segment at this juncture, sir. It will take a finite amount of time. Defense segment, I can tell you straightaway because their system is streamlined. As far as non-defense segment is, sir, I would wait. You can advise on this. Thank you, sir. Thank you so much for all this. Pleasure. Sir, Harshit from Elara again. Thanks for the opportunity. Just on the margin front, since you now have the NGC order, which will be given in March. I know you do not like to discuss on margin, but just wanted to just check. I try and sidestep the margin, but Would the margin of NGC will be similar to P17 Alpha? That is the first question. P17 Alpha was a nominated project. Okay. NGC is a competitive project, but what sir had asked earlier that we are not compromised on the margins. Similar, again, is a perspective term. Yes, it will be similar, if you take it in. Assuming that you bid for and win the LPD and the MCMV order, since it is in the collaboration mode, their margins will be similar to what we are right now having. Would that be correct? If it is a collaboration mode, naturally, the overall margin will be good. But when we share the profit, there would definitely be an impact. P17 Bravo, definitely we are not partnering anybody. We are going independent. I thought you asked about P17. P17 Bravo, we are going independent. Right. Okay. Yeah. Thanks. There, we'll look after the process. Ma'am, could you Sir, I'm Krishna Doshi from Ashika Institutional Equities. I'm so sorry, but my question again happens to be with respect to the margins. Between the P17 Alpha completion in FY 2027 and meaningful NGC revenue, which flows in from Q4 FY 2028 onwards, there is also a risk of execution tapering while we do say that there'll be some sort of a cushion which will be provided by the other orders. What about the margins in those times? In the FY 2028, I partially answered a question based on an earlier query that all the projects what we had indicated as a cushion for this financial year would have adequate margin to sustain the margins we are giving now. The P17, not P17, the NGC, our endeavor would be to pull back the, pull back means pull ahead the revenue approval. That's all I can promise. We also have other verticals like ship repair. To be frank, we have not gone all out. We have taken facilities. We tested waters for a couple of years where the margins are high. We have not yet executed a very big order on ship repair. We have time. We will take on ship repair orders also in a bigger way than what we are currently doing to push up our margins and revenue. Sir, my second question happens to be with regards to the 30 mm guns that we are doing. Can you give us some outlook on the same with regards to the manufacturing capacity margins, and how is the segment supposed to grow in the next 3-5 years? 30 mm gun project started about a year and a half. We had a collaborator from abroad and an Indian partner. As I mentioned earlier on, 10 local manufacturers are getting various components made here. The margins are good. Margins are, let us say, healthy margins are there. Currently, we got order for 17 guns, all from the Indian Navy. Of these 17 guns, four guns have already been installed on board the various platforms and the sea trials and so on, so have been completed. As far as the execution of this 17 guns are concerned, we intend completing this project by mid of 2027, when all the 17 guns will be supplied. In addition, Coast Guard has shown interest. We are having a discussion with Coast Guard for 49 more Naval Surface Guns. We expect the contract to be concluded by mid of this year. That means in the first quarter of FY 2027, we intend concluding the contract. In addition, these guns effectively are used as the primary guns on board small platforms and secondary guns on board the larger platforms. Opportunities are huge. We also got an agreement with our partner that we can export these guns. What we intend doing is once the naval product stabilizes, once they run at sea for more than six months, then we will start our export process. The potential is huge here, and so far there is no competition in the Indian, so far. So far in this segment, there is no competition. We see this business picking up in the coming years. Thank you. Yes, ma'am. Hello, sir. This is Shweta from Equilon. I wanted to know about the non-defense platforms that we are making or we will make, how long it takes to get the order, means the to-and-fro till the final order we get, and how means is the time, because there is no flow in that. Is there more time given in the to-and-fro with the clients? If you can explain that process. Okay, ma'am. Non-defense orders, again, I will put it in two buckets. One is the non-defense orders coming from government entities, like the research vessels. They are all coming from government entities. Second is the orders which are coming from non-government entities like the German client. Yeah, I am talking of non-government. Non-government. The overall non-defense order book contribution is about 20%, as 18%. In this, the export content is almost about 8%. Here it takes time. The time is not taken for the contract conclusion. Time is actually taken for establishing a relationship. We took more than six months to get into the first contract for the four vessels of the German client. Then the next four and the next four came almost back to back. It is just question of making the break. I mentioned that one project where we wanted a collaboration with another shipyard because of the size of the ship, the discussions have been going on for almost one year. But when it happens, then the flow becomes more. After that one year, the approvals again and again, we have to go. There is no approval involved, ma'am. Okay. It is the owner and the shipyard. They are the ones who are giving the approval. Okay. Got it. The one year, I am exaggerating, but let us say in the first project of MPV, it took six months. The six months, it is only for the negotiations to close because some of the conditions, what they demand and expect are not acceptable to us. So we reached a mid path which is financially viable for both the parties. So once that relationship and the contractual terms are established, then it is a question of concluding the contract. So as I said, it is a question of the first break. We already got it, and now, one, we are not able to handle because of the capacity constraints. Second thing is, in the major project, what I discussed, it is a question of concluding the negotiations. Approval is between us and them. There is no government involved in this. Thank you so much. Yeah, please. Hi, sir. This is Hardik Rawat from IIFL Capital. Thank you so much for the opportunity. Sir, my first question would be with regards to the NGC order. Just wanted to understand that we are expecting the order finalization by the end of this financial year. Could you say as to when the orders for the equipment, especially electronic equipment that goes onto that platform, if we are able to receive that order by the end of this financial year, would the order for the equipment be placed right away or could that spill over to the next financial year, that is FY 2027? The order for the equipment would spill over to the next financial year. The contract signing is the kickoff for the equipment decision, finalization, and the decision. But on a proactive note, we have already commenced discussion with most of the major OEM, because now we know who are the OEMs. In some of the cases, the technical requirements have been already frozen because here we need to take the concurrence of the customer also. This process commenced almost from the time we were known that we were the L1 shipyard. We expect to sign the contract with our OEMs within the first six months of receipt of contract, which means in the first half of the next financial year, we will be able to place. That is what is the realistic time. Got it. We also would like to maintain, because if we cannot place too early also. We also need to ensure that the deliveries are just in time, when we need the production. That is the reason. That is helpful, sir. One last question with regards to the NGC execution. We appreciate the fact that you are looking at the fact that 2027 is going to be a peak year in terms of revenue, and there is not a lot of plateauing of growth in FY 2028, which is why an NGC related revenue is being booked in Q4. But since that revenue will only come in Q4, it would be safe to assume that at least on a nine-month basis for FY 2028, growth could slow down on a year-over-year, on a YOY basis? Not necessarily, because what I had mentioned was that almost 10%-15% percentage of project cost is from the spares. So these will start coming in. We contractually are supposed to provide them within X period after the last ship delivery completes. So we will be able to pad up FY 2028 with adequate cushion. At this juncture, no concern. That is all I can say. Got it, sir. Thank you so much. Good evening, sir. Thank you for your very detailed answers to all the questions. I had a question around people and automation, mechanization, given that in the next 3 to 5 years, the scale is going to be very different. Could you talk us about any initiatives you are doing to train people, attract more people, number one? Secondly, investments in mechanization and automation, from a perspective that the execution excellence is maintained. Thank you. A very interesting question. Yes, people first. I will cover both the people as well as the You may be tracking our induction plans. See, ours is a manufacturing company, but as our permanent strength, we intend maintaining a reasonably lean strength, where the, let us say, the blue collar force is limited to handling core activities. So we are maintaining a lean strength. Which means the white collar strength would increase. As recently, there is a live, I think it is concluded, which is concluded as in the window is concluded, we are inducting another 150 executives, 137 executives. All of them, I can assure you, come from top institutions of the country, the best. That is what we pick up. In addition, as the skill workforce depletes, we are inducting for the core jobs. We have an excellent vendor base, subcontracted vendor base in Kolkata, some of the best in India, from various companies handling block fabrication, the welding, specialized welding, and so on. At this juncture, skilled resources-wise, not a red flag as of now. As far as automation is concerned, yes, this is an imperative, and we already started investing. Should you visit our facilities, we have some of the best in terms of the welding machines, the plasma cutting machines, robotic welding machines, and so on. We will continue investing in that. Naturally, it will be need-based, because we do not want to unnecessarily pump in capital. But yes, there is a need, and we are investing. Yes, we slope this responsibility. Robotics has also been brought in. We have a robotic welding machine, which is being almost used to certain capacity, so there is no issue with it. Thank you very much for your detailed thoughts, and all the best to the entire team. Thank you. Thank you, sir. Thank you. Thank you, sir. We will take that as the last question and conclude the conference. I would now like to hand over the floor to Commodore P.R. Hari, sir, for his closing remarks. Thank you, sir. Over to you. Thank you, ladies and gentlemen, for an interesting session. As I said, personally, I look forward to this particular session, where interesting questions come. Sometimes you answer straight, sometimes you sidestep it. Just an occupational hazard. Believe you me, 100% efforts is being put in by the company, and the results are here for you to see. On a positive, proud note, I mention that this is the 13th quarter on a trot, and we would like to maintain it as long as we can. The visibility is very much there. Thank you. Thank you. Thank you so much, sir. I would request everyone to join us for a group photo, please, and then we can proceed to the high tea. Thank you.