Q1 25/26

Aug 8, 2025

Quarterly report

Summary

Q1 FY26 was described as strong, while the INR 21,700 crore order book and major naval deliveries underpin momentum. Management expects FY26-FY27 growth and is expanding capacity toward 40 platforms by 2029.

Ladies and gentlemen, good afternoon, and welcome to the conference call of Garden Reach Shipbuilders & Engineers Limited, arranged by Concept Investor Relations to discuss its Q1 FY 2026 results. We have with us today Commodore P.R. Hari, Indian Navy retired, Chairman and Managing Director, and Shri Sandip Mahapatra, Company Secretary and Compliance Officer. Please note, this conference will be recorded. I would now like to hand over the floor to Commodore P.R. Hari, Chairman and Managing Director. Thank you, and over to you, sir. Thank you, Ram. A very good afternoon to each one of you, and I welcome you all to the conference call of GRSE to discuss Q1 FY 2026 results. With me here is Shri Sandip Mahapatra, the company secretary and the compliance officer. I also take this opportunity to wish each one of you and your families a very happy 79th Independence Day that we celebrated four days back. As I normally do during these earning conference calls, I shall first touch upon the financial performance, focusing on the Q1 results, and then highlight the salient aspects of the physical performance, the order book details, progress of the ongoing projects, orders on the anvil, our expansion plan, and future outlook. Since the last interaction we had, the interim period has been very hectic, and we have met multiple project milestones. I am happy to inform you that the shipyard has delivered the third Survey Vessel (Large). This is the third ship in a series of four ships being built for the Indian Navy, and this ship was delivered on 14th of August this year. We also delivered the first Anti-Submarine Warfare Shallow Water Craft to the Indian Navy again. Just to place on record, 16 Anti-Submarine Warfare Shallow Water Crafts are being built by two government shipyards, GRSE and another PSU shipyard, eight each. We had the honor of delivering the first of these 16 vessels. The contract for both these projects was signed on the same day. Most happy to inform you that GRSE has delivered the first P17A ship to the Indian Navy on 31st of July this year. It is a matter of great pride that this ship, the largest weapon platform built by GRSE, has been delivered ahead of schedule. We have also completed two refits in the ship repair segment during this period: the normal refit of Sagardhwani and the normal refit of Kalpeni. Both these are Indian naval ships, and incidentally, both these ships have been constructed by GRSE way back. Currently, we are executing the refit of another GRSE-built export platform, Mauritian Coast Guard Ship Barracuda. The ship is presently with us for her normal refit. I am also happy to inform you that GRSE has successfully completed the sea acceptance trials of the first indigenous 30mm naval surface gun, again on board one of the ships built by GRSE. Just to place on record again, that this is the first of its kind achievement wherein a 30mm gun has been indigenized. We also signed a contract for construction of two coastal research vessels for the Geological Survey of India. As I mentioned last time, GRSE has been declared the L1 bidder in the prestigious high-value Next Generation Corvette project. The contract negotiations are currently in progress, and we expect the contract to be concluded during this financial year. Coming to the current order book. Our order book as on June 30, 2025 stands at INR 21,700 crores, and this consists of 10 projects comprising of 40 marine platforms. These include four projects for the Indian Navy, the P17A. We are still left with two ships, the Survey Vessel (Large) project, one more ship left, the Anti-Submarine Warfare Shallow Water Craft project, seven ships out of the eight left, and the Next Generation Offshore Patrol Vessel project comprising of four ships. So total 14 naval ships from these four projects. We are also constructing four specialized research vessels from three projects: an ocean research vessel for the Ministry of Earth Sciences, the NCPOR Goa, an acoustic research ship for the DRDO, the NPOL Kochi, and two coastal research vessels that I just mentioned for the Geological Survey of India. So all in all, we are constructing four specialized research vessels. Incidentally, we are the only Indian shipyard currently constructing specialized research vessels. In addition, we are also executing a project for the government of West Bengal, 13 hybrid ferries. These are advanced ferry vessels. It's a World Bank-funded project currently being executed for the government of West Bengal. We are also undertaking a project for the government of Bangladesh, an advanced 1,000-meter cube trailing suction hopper dredger. This project is in progress. In addition, as stated during my last interaction, we are constructing eight multipurpose vessels for a European, that's a German client. So all in all, 10 projects, 40 platforms. This is in addition to the orders that we have for portable steel bridges, the deck machinery, and also the ship repair division. I shall now update you on the progress of the ongoing projects. As I mentioned, currently we are executing construction of two P17A ships. The second in the series has almost touched 80% of physical progress of construction, and the third ship has achieved around 56% progress. The ship which has achieved around 80% progress is expected to be delivered by April 2026, and the last ship by August 2026. Coming to the Survey Vessel (Large) project, the last ship, the ship number 4, has achieved around 82% physical progress of construction, and this ship is expected to be delivered by the end of this calendar year. Coming to the Anti-Submarine Warfare Shallow Water Craft project, we have got seven ships left. The second ship in the series has already achieved around 97% of construction. She has completed all her contractor sea trials, including the final machinery trials, and this ship is expected to be delivered to the Indian Navy by the end of this month. We also intend delivering two more ships of this project during the current financial year. By the end of next calendar year, that means by end of 2026, we will be completing this project, having delivered the balance ships. The Next Generation Offshore Patrol Vessel project, it's a four-ship project. The first two ships are almost touching 60% physical progress of construction. The next two ships are around 48% physical progress of construction. The progress of this project is satisfactory, and we intend completing this project on time. The project is expected to be completed as per schedule by calendar year 2028, that is financial year 2029. Coming to the other projects, we have already started construction of the ocean research vessel, the hybrid ferries, and the dredger. All these three projects are moving along fine. Coming to the other two ships, the acoustic research ship and the coastal research vessel, the pre-production activities are currently in progress. This, in a nutshell, gives you an overview of the projects currently in hand. Now, I shall touch upon the projects on the anvil. As I had mentioned, the contract negotiations for the Next Generation Corvette project is currently in progress with the Ministry of Defence and Navy. This is going to be a high-value order. The order value is expected to be to the tune of around INR 25,000 crores. I expect this contract to be concluded during the current financial year. I am also happy to inform you that GRSE is currently executing an order for eight multipurpose vessels for the German client, and we intend concluding a contract for another four multipurpose vessels. The contract is expected to be signed by mid-September this year. That is within a month, we should be signing this contract. We have also submitted bids for two projects, one of the Indian Navy, five next generation survey vessels, and one for the Indian Coast Guard, 18 next generation fast patrol vessels. We expect the bid declaration to be somewhere around the end of this calendar year. Now coming to the RFPs which are likely to be floated by the Navy and the Coast Guard. One RFP, by the way, is already current. That is for the multipurpose vessels. The two ships per project, akin to the current project being executed by one of the private shipyards in India. The order value is likely to be around INR 1,200 crores. Navy is also likely to come out with an RFP for 31 follow on next generation waterjet FACs. I expect the RFP to come out towards end of this financial year. In addition, the Indian Coast Guard is expected to come out with an RFP for six Next Generation Offshore Patrol Vessels and 22 interceptor crafts. In addition, Navy is likely to come out with an RFP for 120 fast interceptor crafts. All these RFPs are likely to come out from now to the next 18 months, over a period of next 18 months. One important RFP of Indian Navy that we are eagerly looking forward, where our Raksha Mantri, Defence Acquisition Council, has already accorded the AoN, is the prestigious P17 Bravo project. This is the follow-on of the current project that we are executing, the P17A, and this again is a seven-ship project. Approximate order value could be to the tune of around INR 70,000 crores. Here, the L1 shipyard could get four ships, and the L2 shipyard three ships. With our experience of having built the P17A frigates, we would be bidding appropriately with an aim to win this bid. The RFP is likely to be floated by the Navy by the end of this calendar year. I think this gives you an overview of the orders immediately in the offing and what is likely to come up over a period of next 18 months. Coming to our shipbuilding capacity and our expansion plans. Just to give you the perspective, about 3 years back, our shipbuilding capacity was for concurrent construction of 20 platforms. In 2024, through revamping, revitalizing some of our facilities, we had increased it to 24 ships, and now we have a capacity to build 28 platforms, eight large and 20 medium and small platforms. With the kind of modernization that we are currently progressing, by 2026, we intend increasing this capacity to 32 ships. This is within the geographical limitations of what we have currently in Kolkata. As part of our expansion plans, we intend acquiring one more dry dock in Kolkata from the Syama Prasad Mookerjee Port. The final discussions are in progress, and this will further augment our capacity for ship repairs. In addition, we are planning to set up a greenfield shipbuilding facility within West Bengal. The land finalization is in progress. It is approximately 30-plus acres of land, and we intend commencing production here. Which means we will be starting the preparatory activities within a couple of months, and we intend commencing production here within a year. But we feel this also is not adequate considering the orders on the anvil, the order visibility in terms of commercial shipbuilding, and the opportunities thereon. We intend setting up a greenfield shipyard either on the west or east coast of India, and we have already identified the suitable areas. The discussions and deliberations are currently in progress, and within a year, we will conclude the negotiations and acquire this facility. The model of acquiring, the modalities of progressing are still in deliberation. During our next interaction or the next-next interaction, I will be able to provide you better clarity on that. All in all, the shipyard is doing well. Our order book is healthy. We have a clear execution plan. The projects are moving on fine. With our focus on new technology adaption, yard modernization and expansion, new technology adaption with specific focus on green and autonomous vessels, I feel the shipyard is on the right track. With this, I come to the end of my opening remarks and open the floor for question and answers. Thank you. I shall skip repetitive questions, keeping in mind the time constraints. Thank you. The floor is open for question and answers. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Deepen Vakil from PhillipCapital. Please go ahead. Hi. Thank you for this opportunity, sir. My first question is, I wanted to understand a little bit more on your revenue recognition as to how your revenue recognition occurs, because you mentioned that you have recently delivered one of your P17, and another one is almost 80% complete. Do those milestones also represent the kind of amount that you would have received from government, or even after deliveries, there is some amount which is still pending to be received from government? Can you throw some light on the revenue recognition for your deliveries and milestones? Thank you. Yes. The projects that we are executing are at a stage of production maturity where revenue accrual is either peaking or would be peaking in the coming months and years. Coming specifically to the P17A project, all the projects which are government projects, which we are executing for the Indian Navy or the Indian Coast Guard, they have stage payments defined. Just to give you an example, a big project like this spans over a duration of five years plus. There are 15 stage payments, with the 14th stage coming when the ship is delivered, and the 15th stage is after the guarantee period is over. As far as the receivables are concerned, when we say we are delivering a ship, we would already received almost 95% of the total project cost. Coming to the revenue. The revenue recognition happens as we are pumping in the labor, the material, the yard effort, and so on. As far as revenue recognition is concerned in this particular project, the entire revenue recognition happens at the time of delivery. So with the first P17A, we have realized the full revenue, and as far as the second P17A is concerned, the ship is currently at 80% physical progress. Since the delivery of this ship is planned during April 2026, I appreciate that by March end, we should be able to accrue almost 90%-92% of the revenue. I think that answers your question. Thank you. Absolutely, sir. Absolutely. Thank you so much for this clarification. Sir, my second question is on the lines of the new product development that GRSE is doing. Earlier, we had mentioned that you were also looking at some autonomous underwater vehicles. Any progress on that, and what kind of opportunities in this area, considering that autonomous is turning out to be a new game changer, vehicles, especially in land as well as underwater? Thank you. Our focus has been on new product development. One, as I mentioned, I've been passing earlier on two segments, actually three segments. I forgot to mention a segment earlier. First one is development of autonomous platforms, both in the surface and subsurface domain. I will cover this right now since you asked me the specific question. We have developed an unmanned underwater platform, and this platform has already undergone its prototype trials satisfactorily at the lake in Kashmir. We have incorporated certain modifications in the prototype, and the product is now ready for final trials. Coming to the unmanned surface vessels, we had developed this product in 2023, and 2024, we have already executed an order for one of the DRDO organizations, the NSTL Visakhapatnam. Based on the inputs that we have received, we have incorporated additional features in this USV unmanned surface vessel. On both the unmanned surface vessel and the underwater platform, the opportunities are phenomenal with both the Navy and the Coast Guard and some of the research organizations coming up with the requirements. Still, I would like to place this clearly that development of such platforms is, as a nation, it is still at nascent stage, and I expect more maturity to come in this entire segment in the coming 2-3 years, where the opportunities, and therefore, the potential definitely will see a huge rise. So we are fully geared up for that, and our advantage is that as a big company, we have invested, we have taken partners who are capable. We have developed products. Now it's a question of fine-tuning to meet the customer requirements. As I said, in the next 2-3 years, we expect the potential to really boom. Second area where we are developing a new technology product is green vessels. As you perhaps are aware that we already built the largest green platform for India. That is 150 passenger platform, and the fastest so far built in India. This vessel is currently plying the waters of Hooghly River. Based on the success of this product, we have received an order for 13 hybrid ferries. Currently in India, there are only two big shipyards, one us and Cochin Shipyard, building these kind of platforms as of now. The third area in terms of new product development that we are focusing is on the Bailey bridges segment, where we have proprietary rights of at least two or three varieties of bridges, which are being regularly supplied to the Indian Army and the Border Roads Organization and the NHIDCL. New product development has so far given us a good foothold in the respective segments, what I have mentioned. Thank you. Thank you so much for this detailed response. I will get back on the queue for my follow-up question. Thank you so much, and all the best. Thank you. We take the next question from the line of Krishna Doshi from Ashika Institutional Equities. Please go ahead. Thank you so much for the opportunity, and congratulations on a good set of numbers, sir. My first question happens to be with the P17A project. Now that we see it coming to an end by August 2026, I just wanted to know how do we see the margins and the revenue panning out for FY 2027 and FY 2028? Do we see some sort of an impact on the top line, or how is it going ahead? Thank you, Krishna. At outset, thank you for your wishes on our Q1 performance. Yes, the Q1 was good, and it has given us the right kind of momentum to see the year through. Yes, the P17A project is very much on schedule, and we intend completing the project by mid-2026, that is August 2026. Since this project is a big-ticket item, we expect both the top line and the bottom line to maintain the tempo that we have sustained over the last three years. What I am trying to convey is that FY 2025 has been very good for us. We crossed INR 5,000 crore barrier with respect to our top line, and as far as the profit after tax is concerned, we have crossed the INR 500 crore barrier, which means these are two firsts for us. With the P17A project being the biggest revenue earner and of course, it is a high-value project, I expect similar growth in FY 2026 as well as FY 2027 in terms of both top line and bottom line. Thank you. Thank you so much, sir, for the answer. The next question that I wanted to ask is with respect to the Next Generation Corvette order. We have set this very optimistic timeline of signing the contract by December. I just wanted to understand that how does it go post that? Because the first ship, as you mentioned earlier in the con calls, it usually takes some time. How is it going to go going forward? When are we going to possibly deliver the first ship? Thank you. Very interestingly, as we speak, the contract negotiations are in progress. Actually, during this con call itself, I was getting disturbed as to some input I have to give there. What I'm trying to say, the project negotiations are going in full swing, and most optimistically, this is exactly what I mentioned during the last con call, that most optimistically, the contract could get signed by end of the calendar year, that is by December, and on a conservative fashion, because the process involved takes a bit of time, by the financial year end. Once the contract is signed, the pre-production activities start. What I mean by pre-production activities is finalization of the design, finalizing the equipment that needs to be procured, and the procurement action. These activities will take place during the initial phase of the project execution. The actual production after the design is finalized would commence after a certain period of time as per the contract. For the first ship delivery, as I understand, the first ship delivery would be by 2031. The last ship delivery, because we will be constructing five ships, could be 2034. Since it's an eight-ship project, deliveries are staggered, which means as a company, this particular big-ticket order gives us visibility up to 2034, with the first delivery starting from 2031. As far as revenue recognition is concerned, we expect this project to give us revenue from FY 2028 onwards. Thank you. Thank you, Krishna. Thank you, sir. I'll get back in the question queue. Thank you. The next question comes from the line of Amit Dixit from Goldman Sachs. Please go ahead. Yeah. Hi. Good afternoon, everyone. Thanks for the congratulations on the- Amit, I do apologize to interrupt you. Your audio is not clear, please. If you could please use your handset and ask your question. Yeah, I'm using handset. Am I audible now? Yes, you are. Please go ahead. Yes, we can hear you. Yeah, sure. Couple of questions, sir. The first one is on the level of indigenization that we have achieved on P17A. Now we are reaching practically the end of the project. What is the level of indigenization on it currently? Similarly, on NGCs, if we get these contracts, what would be the indigenization level that we are looking for? Similarly, P17 Bravo, as and when it is decided, what is the level of indigenization we are going to look over there? Thank you, Amit. Your question is focusing on indigenization. I would just like to give you a little perspective so that we clearly understand the shipbuilding indigenization pattern. In shipbuilding, in a conventional warship, we can divide the ship into a few components, that is the float, the move, fight, and the survey. Float, as in the hull form, the hull of the ship, and the essential equipment and systems required to float the ship. Move effectively becomes the propulsion package, the power generation package, and so on. Fight would be the weapon and sensors, and the survey would be the firefighting equipment and so on. Now, coming to the float element, we have 100% as a nation and as a shipyard, we have 100% indigenized components, including specialized steel and so on. Coming to the move part, here the indigenization is limited to everything other than the propulsion system, which means the propulsion package, the main engines, the diesel engines, the gas turbines, and so on, still have a large amount of import content in that. Coming to the next part, that is the weapon and sensors. I would say with many Indian companies in both public and private focusing on weapon indigenization, again, we have achieved around 65% indigenization. Coming to the last, the survive, it is almost 100% indigenization. In a ship, the total cost of equipment, that is materials, comes to around 65%, with the balance coming from the labor and the associated requirements, design, labor, and so on. If you take the overall ship, let us take, you asked a specific question of P17A. The indigenization content all put together is plus 80, that is between 80% and 85%. In case of the Next Generation Corvette and the P17A, with more equipment getting indigenized over this period of time, we expect the indigenization percentage to be between 85% and 90%. What would remain is a few, very few weapon equipment. Just to again place on record for the P17 Bravo, we expect a make project for the main propulsion engines to be successful by the time this project takes shape. Even the propulsion could be indigenized. That is why I said the overall indigenization percentage of both these projects, the Next Generation Corvettes as well as the P17 Bravo, could be to the tune of 85% to 90%. Does that answer your question, Amit? Yes, sir. Thank you. Thank you so much. It does. The second question essentially is on the greenfield shipyard that we are looking at. Very interesting. Is it that we are looking at deep water, with some draft and all, so that we can further develop our capability to, let us say, destroyers, submarines, something like that? Or is it going to be in line with our current product range? A very interesting question. Actually, a pointed question. Nice question. Yes, we are looking for a greenfield shipyard, primarily because what we have today in Kolkata is just enough to, we are actually stretching at our seams. We are just enough to manage the existing orders and a few orders that are on the anvil. We also want to set up a shipyard which does not have any draft, that is a depth limitation. Naturally, it would be along the sea and not a riverine facility. It would cater for platforms up to destroyers and large commercial ships. Submarines, while as a facility it may have capability, but as a shipyard at this juncture, we do not intend going into submarine building because I think I mentioned once before. We may have the facility, but to create the kind of expertise that is required to build submarines, it takes about 20 to 30 years. We do not want to venture into something that we are not specialized in, whereas we are specialists in warship, surface ship building. The facility that we would be creating would be adequate to meet all surface ship building requirements. Thank you. Great, sir. Thank you so much, and all the best. Thank you. Thank you. We take the next question from the line of Harshit Kapadia from Elara Capital. Please go ahead. Hi. Thanks for giving me an opportunity, and congratulations for good results, sir. I have two questions. One, could you give us the order book breakup, if you have not shared at the start of the call, I just missed initial remarks, for the order book? That's the first question. Thank you. Thank you, Harshit. Daud said thank you for your compliments on the Q1 results. As I mentioned, it has given us the right kind of momentum to move ahead the current financial year. Now, coming to the order book distribution. Our current order book stands at INR 21,700 crores, and that is comprised of 10 marine platforms. I am at this moment not talking about the orders which we are getting from ship repairs, the portable steel bridges, and the deck machinery. So this 10 projects comprised of four projects of the Indian Navy, consisting of 14 platforms and six more projects, three specialized research vessel projects consisting of four platforms, two coastal research vessels, an acoustic research ship, and an ocean research vessel. 13 hybrid ferries, electric and diesel ferries for the government of West Bengal, a multipurpose vessel project, each ship project for a German client, and a 1,000-meter cubed dredger for the government of West Bengal. All in all, 10 projects. If you want a further breakup. In our order book, I had mentioned it is about INR 21,700 crores and around 98%. Our core strength lies in shipbuilding, and around 98% of our order book is comprised of shipbuilding orders. Interestingly, of this 98%, defense shipbuilding, earlier 100% of our shipbuilding orders were from defense shipbuilding. But as of now, 86% is coming from defense shipbuilding. Non-defense shipbuilding, which we have branched out about 2 to 3 years back, is now giving a shipbuilding order book composition of around 14%. Of this, the research vessels are around 9% and the export is around 5%. The other business vertical, ship repair, yes, the orders, of course, they keep coming. It's a dynamic situation. Right now, about a percentage is from ship repairs. The Bailey bridges and the diesel engine plant are about 0.5 percentage and so on. I think this gives you an overall glimpse of the order book. I presume this is what you want. Thank you. Yeah. So this was really helpful, sir. The second question which I wanted to check with you, in the Q4 result, you had highlighted that around INR 430 crores worth of provision you would be adding to profit, with INR 100 crores of that being added in FY 2025. Now, is the balance out of INR 330 crores? It was mentioned that it would be disbursed over the next 2 to 3 years, the balance amount. So has quarter one seen any, I would say, what provision write back of any particular amount, or largely it would be done in H2 or Q4 is where you will see the reversal happening of this balance amount? No, we have not factored it in the Q1. As you rightly said, we will be considering it in the H2, perhaps the first half of H2. Okay. Any tentative amount that you would suggest, sir, out of INR 330 crores, how much would be done in FY 2026? How much you anticipate in FY 2027? Almost 50/50 percentage. Almost 50/50 percentage. Fair enough, sir. This was all from my side. Thank you very much, sir. Thank you. And all the best. Bye. Thank you. The next question comes from the line of Sanjiv Jabade from Antique Stock Broking. Please go ahead. Hello. Yes, sir, my first question was regarding the subcontracting costs that have increased in the first quarter. So wanted to understand, what is our strategy going ahead in the medium term regarding the subcontracting portion? Do we intend to continue with 15%-20% of our sales as going into subcontracting, or is it more of a short-term measure that we have undertaken? Thank you, Sanjiv. Yes, the subcontracting, the quantum has moved up almost by INR 104 crores from INR 131 crores to INR 235 crores. This is a natural phenomenon, because right now our ships are at a stage where maximum revenue accrual takes place, and so the physical effort required to get these ships moving in terms of production is humongous at this stage of production. So the subcontracting, the quantum is likely to, rather the percentage, is likely to remain the same. Second is, now ship repairs also is moving in a direction where the projects which we are executing are reaching the end phase. So the subcontracting can sit and the percentage will remain the values which you have mentioned, around 15%, it will continue. It is not a spike. It will continue. Okay. Also, sir, in the recent AoNs that were granted for INR 67,000 crore, out of which some portion was for Navy also, and in the Navy, they intend to acquire some autonomous vessels also. Are we in contention for this kind of vessels, like procurement of compact autonomous surface craft is what they intend. Are we in this kind of platform right now or maybe going ahead? Okay. In the INR 67,000 crores, which was recently announced, and an earlier DAC approval, from the Navy's perspective, two major projects were highlighted, and for which they got an AoN. One, of course, is what you mentioned on the autonomous vessel projects. Autonomous vessel projects, both in the surface as well as the subsurface domain. Navy wants a certain underwater, they call it XLUUV, is extra-large autonomous underwater vehicles. GRSE is very much a part of this initiative or this requirement, and we will be bidding for that. But more than that, these are all small to medium-value projects. These are all to put things again in the right perspective. I had answered an earlier question. In terms of autonomous platforms for defense purpose, while the requirement very much exists, the process is time-consuming, still in a nascent stage. Next 2 to 3 years, you will see a rapid growth in this segment. GRSE is very much a part of this initiative. Coming to, again, since you mentioned this DAC approval for projects worth so and so and so. Another project where Navy has obtained an AoN is for the mine countermeasure vessel project. This is an attractive project. It is a 12-vessel warship project. The AoN value itself is around INR 32,000 crores split between the two shipyards, the L1 shipyard taking eight and L2 four. That, I think, answers your question directly on the autonomous platforms. To answer, yes, we are very much a part of this, and we intend taking a good chunk of the pie. Okay. And sir, just last question from my side. Normally, what we see in the other two shipyards that announce their numbers, there is a sizable portion of provisions that happen during the quarterly numbers and even in the full year numbers. However, provisions as an expense is not a sizable amount in our numbers. Is there any difference the way we account for maybe provisions? Or if you could throw some light on that. No. We follow the standard accounting procedures, and we have been consistently following this. In case any other shipyard has provided, then that must be for a specific reason. I cannot comment on what the other shipyards have done. We have been consistent in our provisioning process. Okay. Okay, sir. Thank you and all the best. Thank you. Thank you. We take the next question from the line of Sunil Shah from SRE PMS. Please go ahead. Yeah. Thanks for the opportunity. Sir, congratulations on delivering the P17A, the first one. A great service to the nation, so thank you very much for all of it, for the entire GRSE team. Thanks for that. Sir, my first question is about the capacity. We have really ramped up from 20 ships to 24 to 28 and 32 maybe in a year's time from now. There are three locations that we are looking at, the first being the 30-acre land in West Bengal that will help us to increase further capacity. So I want to get the exact number of concurrent ship constructions that we can do eventually. So first, from the land, second from the greenfield shipyard that you propose for the east or the west coast eventually in time. The third one is the Pipavav shipyard, where we have had some kind of an arrangement or MOU with them. So how much at one point in time over the next, say, 2 and a half to 3 years, concurrently we will be able to construct the ships, the number or something on that side, sir? Yeah. Thank you. Thank you, Neeraj. At the outset, P17A was a project which we had taken on with complete passion because for us, this project was totally different and special because while we have constructed frigates earlier also, they were much smaller frigates, the Talwar-class frigates. This was the first platform that has got gas turbine propulsion to be built by GRSE, and the biggest and most complex weapon platform. So it was indeed a matter of great pride for us that we could deliver this ahead of schedule. So that ahead of schedules means a lot to us because for a first-time attempt to deliver with quality ahead of schedule is something which all of us should be proud of. Thank you for your compliments. Coming to the shipbuilding capacity, what we have done so far, as you rightly said, we have increased the capacity from 20 to 24 to 28, and now targeting 32 by the next year. This has not come easy. We have done regular capital infusion, at the same time, optimal infusion to revamp some of our facilities, convert some of our facilities. We realized that what we have, let us take 30 next year, still would not be adequate to meet the potential that is available, affect the potential that is available in the market, especially with the European clients now looking at India as a shipbuilding destination. That is why we thought and decided to move in for acquiring more land and facilities, create facilities. Now, before I come to the Pipav question that you asked, what our target is within the next four years, that means by 2029, we intend ramping up our shipbuilding capacity to 40. So from 30 to 40 is what we are targeting. There, the 30-acre land that we have identified would suffice for around six ships, let us say, and the greenfield facility would not be fully ready by then, but for partial readiness, we should be able to construct around four ships. So all put together, we are targeting around 40 ships in the next five years. Coming to our affair or the association with Pipav, it is an MOU for construction collaboration towards construction of larger platforms. Currently, the capacity that we have is for construction of vessels up to 200 plus meters. Some of the offers available in the market, we realized they are for platforms well beyond this particular type. So we thought we should have a collaboration with a yard that has got that kind of facility. Discussions are in progress, and we are very confident that in the coming years, we could translate this MOU into a couple of orders. Thank you. Thank you, sir. Thank you very much for the answer. Thanks. Thank you. Ladies and gentlemen, as there are no further questions, I will now hand the conference over to Commodore P. L. R. Hari for closing comments. Thank you, Priyank, and thank you, Gaurav, from Concept, and thank you all for participating in this conference and showing interest in our company as always. Considering that we have not had too many questions this day, I presume my analysts and investor friends are happy with what we have done. I conclude the session now. "Jai Hind." Thank you. Thank you. On behalf of Garden Reach Shipbuilders & Engineers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.