Garden Reach Shipbuilders Announces Interim Dividend of Rs 5.75 Per Share
Garden Reach Shipbuilders & Engineers Ltd. has announced an interim dividend of Rs 5.75 per equity share of face value of Rs 10 each, as per an exchange filing on Tuesday. This move comes after the company reported a significant 57.3% rise in its Q2 profit to Rs 154 crore from Rs 97.8 crore in the year-ago period.
Q2 Profit Soars 57.3%
The defence company’s Q2 profit soared 57.3% to Rs 154 crore from Rs 97.8 crore in the corresponding quarter last year. This substantial increase in profit is a positive indicator for investors and reflects the company’s strong performance during the quarter.
Revenue Rises 45.5%
Revenue for the second quarter rose 45.5% to Rs 1,677 crore compared to Rs 1,153 crore in the corresponding quarter last year. This significant rise in revenue is attributed to the company’s increased focus on shipbuilding and engineering activities.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA)
The company’s EBITDA more than doubled to Rs 156 crore from Rs 68.7 crore, with the EBITDA margin expanding to 9.3% against 6% in the Q2 FY25. This improvement in EBITDA margin is a result of the company’s efficient cost management and increased operational efficiency.
Record Date for Dividend Payment
The Board of Directors has fixed November 11, 2025, as the record date for determining the shareholders entitled to receive the interim dividend for FY26. This means that shareholders who hold the company’s shares on or before November 11, 2025, will be eligible to receive the interim dividend.
Dividend Payment Details
The total dividend paid will amount to Rs. 65.87 crore, out of profits of the Company for the half year ended September 30, 2025. The dividend payment will be made to the eligible shareholders as per the company’s dividend distribution policy.
Stock Performance
During the market hours, Garden Reach stock fell as much as 0.92% during the day to Rs 2,550 apiece on the NSE. It closed 0.68% lower at Rs 2,556.20 apiece, compared to a 0.64% decline in the benchmark Nifty 50 at close. Despite the decline, the stock has risen 58.78% in the last 12 months and 58.14% on a year-to-date basis.
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Conclusion
Garden Reach Shipbuilders & Engineers Ltd.’s announcement of an interim dividend of Rs 5.75 per equity share is a positive development for investors. The company’s strong Q2 performance, with a 57.3% rise in profit and 45.5% rise in revenue, is a testament to its growth prospects. Investors can consider intra-day trading strategies and long-term investment strategies to maximize their returns from the stock market.