The share price of Garden Reach Shipbuilders & Engineers rallied 7% to an intra-day high of Rs 2,576 on the National Stock Exchange. This surge in the defence shipbuilding stock is primarily due to the company signing a Memorandum of Understanding (MoU) with Bharat Forge’s arm Kalyani Strategic Systems.
That apart, defence stocks are also in focus after the escalation of the ongoing geopolitical tension across West Asia. Iran struck Saudi Arabia and Bahrain’s largest oil fields, hotels, and residential areas.
Garden Reach Shipbuilders & Engineers ink MoU with Kalyani Strategic Systems
The partnership between Garden Reach Shipbuilders and Kalyani Strategic Systems envisions collaborative efforts to deliver indigenous solutions across a broad spectrum of maritime and defence systems.
“Garden Reach Shipbuilders & Engineers (GRSE) signed an MoU with Kalyani Strategic Systems (KSSL) to jointly develop and promote indigenous solutions for advanced naval systems, unmanned platforms, and other strategic maritime capabilities for domestic and global markets,” read the release shared by the company on exchanges.
The collaboration will also seek to identify and pursue opportunities within India and in other mutually agreed international markets.
What’s going on in West Asia?
The ongoing strikes between US-Israel and Iran continue to escalate after the Israeli strikes targeted key Iranian regime leadership, following the death of the Supreme Leader, Ayatollah Ali Khamenei.
In retaliation, Iran launched drones and missiles targeting Tel Aviv, US bases, and locations in Bahrain and the UAE.
This military conflict led the Islamic Revolutionary Guard Corps (IRGC) to announce the closure of the Strait of Hormuz (SoH), warning that any vessel attempting to transit the waterway would be targeted.
Approximately 20 million barrels per day of crude oil and 86 million tonnes per annum (mtpa) of LNG pass through the SoH, representing 27% of global oil trade and 20% of global LNG trade. This led to a shot up in crude oil prices globally.
As the overall equity markets were painted red, the defence sector and its constituents surged higher. Not just Garden Reach Shipbuilders, but also defence counters like Mazagon Dock Shipbuilders, Paras Defence and Space Technologies, Mishra Dhatu Nigam, Solar Industries India, etc.
Garden Reach Shipbuilders share price performance
The share price of Garden Reach Shipbuilders has given a return of 1.5% in the last five trading sessions. The stock has surged more than 5% in the past one month and 6.55% in the last six months. Garden Reach Shipbuilders has raised investors’ wealth by 95% over the previous one year, giving multibagger returns.
Garden Reach Shipbuilders Q3FY26
The company posted a net profit rise of 73.92% year-on-year in the third quarter of FY26, standing at Rs 170.77 crore, compared with Rs 98.19 crore in the corresponding quarter a year ago.
Its revenue from operations came in at Rs 1,895.69 crore in Q3FY26, an increase of 49.15% YoY as against Rs 1,271.01 crore in the same period last year.