Garden Reach Shipbuilders Declares Interim Dividend of ₹7.15 Per Share

Kolkata, February 03, 2026: Garden Reach Shipbuilders & Engineers Ltd announced a second interim dividend of ₹7.15 per equity share for FY26. The dividend will be funded from profits recorded up to December 31, 2025.

The board approved the dividend at its meeting held on January 28. The company disclosed the decision through an exchange filing.

The total dividend outgo amounts to ₹81.90 crore based on the current paid-up capital.

Key Dates and Timeline

The company has fixed February 3, 2026, as the record date to determine eligible shareholders. Investors who held the shares as of the record date will be entitled to receive the interim dividend.

February 2, 2026, was the last trading day to buy the shares to qualify for the dividend. Shares bought on or after February 3 will not carry the dividend entitlement. The dividend is expected to be credited within the statutory timeframe, in line with regulatory norms.

Purpose Behind the Interim Dividend

The company stated that the dividend is being paid out of profits generated during the nine months. Interim dividends are typically declared to distribute earnings while the financial year is still in progress.

Management linked the payout to operational performance and project execution during the year.

Commenting on the results, PR Hari, Chairman and Managing Director, said the company is on track to record its best-ever financial performance this year.

He added that five warships have been delivered so far in FY26. The company is currently executing 10 major shipbuilding projects comprising 42 platforms.

He also noted that ship repairs, portable steel bridges, and naval weapon systems businesses are contributing to activity levels. The management expects the order book to reach around ₹50,000 crore with upcoming contracts.

Impact on Shareholders

Eligible shareholders will receive ₹7.15 per share as a cash distribution. The face value of each share is ₹10.

Dividend payouts provide direct returns without altering the shareholding structure. There is no dilution or change in equity capital.

Investors holding shares as of the record date will receive the benefit. Others will not be included in this cycle.

Market Snapshot and Share Price Effect

An initial positive reaction followed the announcement of both strong Q3 results (74% profit growth) and the dividend, with GRSE shares rising by over 5% on January 28-29, 2026. This underscores investor confidence in the company’s earnings momentum and shareholder‑return policy.

Garden Reach Shipbuilders & Engineers trades on the BSE/NSE with a market capitalisation of around ₹29,500 crore and a trailing P/E of roughly 43 times. This reflected its position as a high‑quality defence PSU with strong return‑on‑capital metrics.

Over the past year, the stock has seen elevated volatility, with prices moving from the mid‑₹1,300s in early‑2025 to above ₹3,100 at peak levels, before settling in the mid‑₹2,500-₹2,700 band by early‑February 2026.

Ref: https://www.nseindia.com/get-quote/equity/GRSE/Garden-Reach-Shipbuilders-&-Engineers-LimitedSource

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