Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Garden Reach Shipbuilders & Engineers Limited (NSE: GRSE) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
P.R. Hari — Chairman and Managing Director
Analysts:
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen. Good day and welcome to the conference call of Garden Reach ShipBuilders and Engineers Limited arranged by Concept Investor Relations to discuss its Q4 and FY26 results. We have with us today Commander Pr. Hari, Indian Navy Retired Chairman and Managing Director Anshri Niranjan Mukund Bhalerao, Director Finance and CFO Anshri Sandeep Mahapatra, Company Secretary and Compliance Officer. Please note that this conference will be recorded. I would now like to hand over the floor to Kamadur Pr.
Hari, Chairman and Managing Director. Thank you. And over to you, sir.
P.R. Hari — Chairman and Managing Director
Thank you. Good afternoon ladies and gentlemen. And a warm welcome to each one of you to the conference. And I welcome each one of you to the conference hall of Fame Garnish Builders to discuss the results for Q4 and financial year ending 31 March 2026. With me here are Sri Niranjan Pallarao, Director of Finance and Chief Finance Officer Srimati Aparajida Ghosh, Chief General Manager of Finance and Sri Sandeep Mahapatra, the Company Secretary. And over the next few minutes I shall give you a glimpse of our financial performance and thereafter highlight the physical performance that has resulted in the company recording strong numbers during the last financial year.
I shall also touch upon the current order book execution plan for the ongoing project order contract and the future outlook of the company including a glimpse of our expansion plans. As I have stated, our financial performance during the quarter and financial year ending 2026 March 31st has been strong. And this has been the result of an equally robust performance during the quarter as well as the year. We have recorded our best ever financial performance. The revenue from operations recorded during the quarter was rupees 2119 crore registering a growth of 29% over the last year.
And profit after tax has moved up by 24% from 244 crores to 303 crores. Similarly, the margins have also shown a substantial increase when we take the full financial year. I am happy to inform you that we have recorded revenue from operations of rupees seven thousand and two crores registering a growth of 38% over the last financial year. Similarly, our profit after tax has moved up from 527 crores to 748 crores registering a growth of 42%. All in all, the financial year has been excellent for us and so has been the quarter four.
Coming to the physical performance, our core business continues to be shipbuilding and from the shipbuilding perspective, this again has been the best ever year in the history of the company. We delivered eight warships to the Indian Navy and interestingly three of these vessels were delivered on the same day. And this perhaps is the first time in the history of our country. We also launched one warship with the TLane of 19 platforms. These 19 of course include 13 hybrid ferries that we are building for Government of West Bengal.
So 13 ferries plus six more platforms. We have done the keeling during the last year. Coming to the other business vertical, seven naval surface guns were delivered during the last year and four of these have successfully completed the sea acceptance trial. We also delivered 110 portable steel bridges. As you are aware, we have a daily bridges business vertical and during the last year we delivered 110 bridges including 30 for export. I am also happy to inform you that the revenue from this particular vertical has touched the 200 plus crores for the first time in the history of that vertical.
Also we have recorded a revenue of over 270 crores from exports. Our current order book stands at Rs. 15,324.13 crores. Actually I’m happy that the order book Is dropped below 20,000 crores in the last five years is the first time that the order book is dropping below 20,000 crores. And in my application there’s an indication that our execution rate has improved. This order book comprised of nine projects consisting of 39 platforms. The P17 Nalcot project. One more ship is yet to be delivered. The anti submarine shallow watercraft project.
We have four ships pending for delivery, four next generation offshore petrol vessels, one ocean research vessel, one acoustic research ship, two coastal reforge vessels, 13 hydrate ferries, 12 multipurpose vessels and 1000 meter cube ledger. Now coming to the execution plan of these ongoing projects. As I mentioned, one P17 Alpha ship is yet to be delivered. This ship has already recorded about 74% physical progress on construction and we intend delivering the ship during the current calendar year.
The project is on schedule. Coming to the anti separation of watercraft project. This is an eight ship project and obviously eight ships, four have already been delivered and the remaining four ships, two of them have touched about 80% physical force because of construction and the basin trials have been completed and we are preparing them for the contractor fleet trials and we intend delivering these ships by the mid of the calendar year. The last two ships, Ships 7 and 8 have touched around 60% physical positive construction and we will be delivering these shifts during the current financial year Thereby completing this project.
Also coming to the next generation offshore petrol vessel project. This is a four ship project and the first of these ships have reached the stage of launch and the launch of this vessel is planned on 20th of this month. The progress of production construction of the remaining three ships is also satisfactory and we have been completing this project during Grand Slayer 29. Coming to the other project, the non defense project, the ocean research vessel this we are constructing for the Ministry of Earth Sciences One of their organizations called the NCPOR Goa.
This vessel has already undergone about 50% of construction and the ship is planned for launch during the current calendar year. The acoustic referral ship that we are constructing for the DRDO the ship has almost 20% physical progressive construction. And the ferries, the 13 ferries, six 200 packs and 700 pack ferries they are on tight and the first two ferries of the 100 packs are expected to be launched during May, that is this month and the next one is planned for launch in the next month. This project shall be completed by the end of the current financial year.
Now coming to the two export projects as you are aware we are executing a project for a German plant that 12 ship multi purpose vessel project keeling that is one of the project milestones of three of the ships have already been completed and the project is on track as of now. And the last project, the project that we are executing for the government of Bangladesh A dredger project on PAC and the Indian launching this weapon during the current financial year. This in a nutshell gives you the execution plan for the orders in now coming to what is on the Anvil.
The orders on the Anvil as you are aware that we are the L1 for the next generation Corbett project. The price negotiations already been completed and we are awaiting the formal signing of contract. The date is not fixed. It could happen any of these raise the order values to the tune of around 33,000 crores. Currently three tenders are live one for the Indian Navy and two for the Indian Coast Guard. The multi purpose vessel project two of which the tender is already out. We expect the order value to be to the tune of around 1500 crores and the next generation offshore petrol vessels already been posted.
Five of these vessels gained order values to the tune of around 2000 crores and 22 interceptor boats for the Indian Coast Guard again the order value is likely to be tuned for about thousand crores. In addition three projects where we expect the RFPs to come out in the next three months. 120 passed in the sector craft project for the Indian Navy the order value is to the tune of around 3500 crores. The 31 follow on Waterjet FFC project again for the Indian Navy about 8500 crores and 7 T17 Bravo ship the Aon cost as you are aware has already been recorded.
We expect the RFP to come out in the next three months and order value is likely to the tune of around 70,000 km. This is in addition to the 12 mined condom measure as I said PNB project again for the Indian Navy the AON value is around 42,000 crores and 4 landing platform doc LPD the order value is likely to the tune of around 35,000 crores. I have not included the next generation destroyers or any other projects which are yet to get to the AON status because the project what I listed out are only the projects where AON has been accorded and as we appreciate the first three projects I.e.
The 120 SIC31 follow on water jet, FSP and the Southern P17 driver, we expect the RFP to come out in the next three months and other two projects, the main countermeasure and the landing platform dock most likely during the current financial year and the total order estimated order graph is to the tune of about 1 50,000 crores excluding of course the NGC project. In addition what we had been discussing earlier, the aggregated demand of the domestic requirement of commercial vessels aggregated by the Ministry of Shipping.
Now they gained traction and four tenders are live four platform support vessels. The cost could be to the tune of around 1,200 2,500 crores, 4Mr. Tankers, 6 Very Large Gas Carriers, VLGC and 6 Afromax vessels. These tenders are light and definitely we would be taking part in these. This in a nutshell gives you the visibility on the opportunities that are currently available coming to our expansion plan as stated before, our expansion plans are on the right track and just to give you the perspective, our currency building capacity is for construction of 28 platforms and with the ongoing expansion projects, the modernization projects within our premises, this capacity will get increased to 32 ships by the end of the calendar year and the projects that we have taken on for expansion is for creation of two brownfield shipbuilding facilities in West Bengal and two Greenfield shipbuilding facilities, one in West Bengal and one in Gujarat.
What we envisage is with the revitalization package to post shipbuilding that has been promulgated by the government which is to the tune of around 69,725 crores and the demand for platforms that has already been aggregated by the Ministry of Shipping. We expect the machine shipbuilding segment to take momentum, gather momentum, and it is with this intent that we are expanding to increase our shipbuilding capacity. So I have broadly given you a glimpse of our financial performance and how the strong physical performance during the last year has resulted in this financial results.
Given you a glimpse of the order book, the execution plan, the orders on the anvil and also touched upon the expansion plans. I have finished. Ladies and gentlemen, you may like to ask any questions as appropriate. The moderator may take one, please.
Operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Amit Dishad from GS Investments. Please go ahead.
Questions and Answers:
Unidentified Participant
Yeah, hi, good afternoon everyone and thanks for the opportunity. First of all, congratulations for a very robust quarter and the year. Sir, couple of questions from my side. The first one is on if I go through the statutory committee of defense reports, then something very striking that if you look at the summary of contracts that are expected to be signed over next two years, these have gone down substantially. In the last report it was around 42,000 crores. In the report released in March, it is only 18,900 crores approximately for warships and survey vessels that particular category.
So in that light, just wanted to understand that how do we look at the focus of the government in the near term on these warships and survey vessels? That is our core area. So that is the first question.
P.R. Hari
Thank you, Mr. Amit. Now, when the figure of 18,900 crores has been allotted for shipbuilding, defence shipbuilding, in my position, there is a fund outflow during the particular year. But as you are aware that government, including during the last year, perhaps even during the last to last Defence Acquisition Council have given a green signal for multiple projects what I had listed out. So the government focus on worship building is very much there. And it is evident from the fact that Aon is being accorded and the RFPs are being promulgated on things by both the major ND users, that is the Navy and the Coast Guard and also the fact that these RFPs are getting translated into contracts.
That’s why my first statement was that the NGC project is live and together the helium, the value is sufficient to the tune of 33,000 crores. Only for us, this figure, what you have mentioned is perhaps the fund outflow that is anticipated from these projects during a particular financial year and that depends upon the project maturity. Now another aspect is that both the services, Indian Maritime Services, both the Navy and the Coastat have absolutely clear roadmap roadmap and stated the prospective plans which have been approved by the government.
So to answer your question in a nutshell, the figures that you have stated does not reflect intent, nor the intent of the government, nor the progress made in this direction. Thank you.
Unidentified Participant
Great sir, very comforting. The second question that I have is again, you know, taking a step back, it’s a very macro kind of question. I mean considering the current warfare that is there and the TCPR of the government where, I mean where the lot of focus on autonomous vessels, on drones, on you know, new age electronics. So where do you think the traditional platforms like you know, Corvette and Destroyers, you know, stand or stack. Isn’t the relevance of these traditional platforms declining?
That is part one, part two, is that how GRSE is gearing itself for maybe, you know, these autonomous kind of vehicles or vessels or you know, some kind of, you know, modern ships or, or the small shifts that are being increasingly used in modern warfare. So are there some investments that we are kind of making in that front or what is your strategy on that? I mean it’s a five year question, not something that can be done in next year or something. So just wanted your thoughts on this.
P.R. Hari
Thank you. You’re absolutely right that there has been an increased focus on autonomous vessels. What is visible outside is the fact that current situation drops the focus of the government to the fore. But otherwise again, the Indian Navy has got and a promoted autonomous roadmap almost, which was promulgated almost three years back, even before the current situation is related to the state where it is now. So it is just that for us all outside the realm of direct warfare, this is coming to focus now.
Even wide autonomous platforms, be it subsurface surface or aerial, will have been, are being and will be utilized in a larger manner, larger, let us say larger focus, the conventional platforms would continue to remain because these conventional platforms, one, they provide heavy duty muscle in terms of armament. Second, they have huge endurance, sometimes endurance to stay more than three months in at sea. So these conventional platforms would continue to in my appreciation and as an experienced individual in this field, conventional platforms of architecture ranges be it a fast patrol vessel or be it an aircraft carrier or be it a conventional or strategic submarine.
This trust and their existence will continue to remain. Now coming to jrfe JRFP had ventured into the autonomous field as late as three and a half years back and used catalog in all three dimensions which I mentioned both the subsequent. We have successfully developed both the subsurface and the surface versions. And just to inform you that one of our products has been supplied to provided to one of the DRB organizations. We see opportunities here and we are an integral part make one and make two schemes which the government has promulgated and few cases where the autonomous underwater vessels we are very much in the fray.
And in the next year, since you asked me what can be the short term and what can be envisaged in the next five years. In the short term, what we have developed we see them gaining let us say more standing in the domestic market. And in the long term, that is three to five years we see the make projects for the XL that is extra large autonomous underwater nacelle project to take shape. And perhaps in the next three to five years we should be able to develop and deliver this project to the customers.
So it is moving in the right direction. And as with many of the defense manufacturers of India, we have a separate business vertical on the new technology. So we are focusing on the autonomous platforms. And the next three to five years we see gathering for the momentum. Thank you.
Unidentified Participant
Great sir. Thank you so much and all the best.
P.R. Hari
Thank you.
Operator
Thank you. Next question is from the line of Harshit Kapadia from Elara Capital. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Thanks for the opportunity and congrats for a very good set of results. A few questions from my side. So first could you please give us the order book breakup which you generally give across the shift? That’s the first question.
P.R. Hari
Sure. Thank you. Mr. Harshit. The order book breakup, as I mentioned, our total order value order book value is 15,324 crores. And about 95% continues to come from shipbuilding. So the shipbuilding orders are to the tune of around 14,730 crores. And within shipbuilding the P17 Alpha project has 5,868 crores remaining. And the anti civilian shallow water craft 2035 crores. And the next generation offshore petrol vessels 8,168 crores. So the warship building orders are to the tune of around 11,361 crores.
Coming to the non defence segment, the ocean reforge vessel is 749 crores. The coastal research vessels, two of them, they are doing 260 crores. Acoustic Reserve ships 156 crores. The erectic ferries, hybrid ferries 207 crores. The multi purpose vessels 1345 crores. And the dredger about 66 crores remaining. What is interesting is that the non defence segment now we have about 22 of auto to L. Thank you.
Unidentified Participant
Understood, sir. Understood. So my second question is so when on the 31st of March when you reported your provisional revenue figures and on the result date when you gave out the numbers of revenue, there was a, you know, huge delta. As in it was very positive. Of course. But what would be the reason for this difference? If you can explain. Because generally historically we haven’t seen such a huge difference between the provision number and the actual revenue figure, sir.
P.R. Hari
Okay, very interesting. Are you happy or not happy?
Unidentified Participant
Of course I have. Very happy, sir.
P.R. Hari
Okay, since you’re happy, we had. See we had you. I’m sure you’re keeping track of our progress. At the physical milestone. A couple of ships, not couple, three ships were delivered on the last day. So these, the revenue recognition, the liaison with the Navy, all these aspects were going on. That is the reason why we went for a conservative figure. So when all this happened and when we formalized the deliveries and handed over the ships, the revenue appropriately was recorded, realized from these ships and total revenue now comes to our best figures of 7,002 crores.
Thank you.
Unidentified Participant
Understood, sir. Follow up question is, sir, on the NGC order, if you remember sir, the last time when we met, you are very confident that probably will be getting this order in the month of March 2026. But today also you mentioned that price negotiations are going on. You’re expecting the order to come soon. So. So where is the hiccups or where is the delay? And by when do you think the NGC order would come? In addition to this, you also highlighted certain smaller projects like 22 water jets and other smaller size projects.
Now are they there are two winners or it will be a single winner. If you can highlight.
P.R. Hari
Okay, thank you. First thing, I would like to clarify that the price negotiations are completed. Actually when we drafted at that stage of price negotiations were completed, they have been completed. We were expecting the contract to be signed by 31 March. Because at that point of time the contract negotiations, the terms and conditions, those aspects were in place very optimistically appreciated. That it will get completed by 31st March. Our current assessment is that the contract could be signed would be signed during the current quarter that is Q it goes the right direction.
No red flags so far. Coming to the smaller projects which you mentioned, that first project of multipurpose vessels is single shipyard. There are only two ships are there the two project for coast yard five ships again a single shipyard and the interboats again as a single shipyard. But the other projects, the 120 fast interceptor craft and P17 dragoon the fast attack craft, fast interceptor craft 120. It will be split between two shipyards 80 and 40. That is the RFP conditions and likely RFP conditions.
And the second project, the T17 Bravo again would be split between two shipyards but four and three like the current people being alpha project, the mine countermeasure, the 12 ship project would be split between two shipyards eight and four and the landing platform dock two and two. But these two the last two projects which I mentioned have some time off because I expect the RFPs to come out sometime during the latter half of the current deference day. I think that gives you broad perspective of the orders in hand, including the breakup plan.
Unidentified Participant
This is really helpful and thank you for this insight. Wishing you all the best.
P.R. Hari
Thank you.
Operator
Thank you. Next question is from the line of Bhavya Gandhi from Bajaj Alternative Investment Management Ltd. Please proceed.
Unidentified Participant
Yes, my first question is regarding when can we see the revenue booking for NGC starting and in the intermittent period you are supposed to have smaller ships where you could contribute to the revenue. So if you can throw some light, how will the revenue numbers look like for the next two years?
P.R. Hari
Thank you. The revenue booking from NBC. If the contract is signed during the current quarter, we expect the booking to happen during the latter half of the next financial year. That is FY28. The second half of FY28. We expect the revenue generation from NGC to commons and percentage wise, if you can just
Unidentified Participant
Elaborate how much would be the percentage booking percentage booking wise for the first two years at least.
P.R. Hari
See, you have to specifically ask me about NGC.
Unidentified Participant
Ngc. Yeah, NGC is particular.
P.R. Hari
Okay, see you are aware since we have been interacting over multiple investment analysts need that shipment follows the NS curve, which means the initial phase when the preparatory activities of construction are in progress, the revenue recognition is minimal. Then it picks up as the physical construction starts in terms of block fabrication, the hull fabrication, where the steel and certain outfit items get into the platform. Then comes the next phase where the steeper phase where the equipment Gets lowered and as you are aware around 65% of the ships cost itself is equipment.
Then the S. Peter’s out. It flattened and precious is moving towards the delivery and once delivered the balance. So considering this aspect in the first year, assuming again we are signing the contract, assuming that we have signed the contract in the first quarter. We don’t plan any revenue recognition during the current year or even during the next half. The next part, what I mentioned to commence revenue recognition that is mediocre amount which is coming from the design inputs which lead to getting the ship ready for construction.
The major chunk of the revenue recognition will start from FY29 when the Hull construction would have matured and the equipment at least some part of the equipment comes in. This is what I say at this moment. Now currently we have as I mentioned, we have about 39 platforms under construction. And again as what I stated during this very interaction that few of these vessels are in a mature state where the production progress is very good as per the contraction timeline. So we expect that revenue accrual during the current financial is going to be very healthy and in line with what we have been seeing during the last three or four years.
And for the next year that is FY28 we will pad up with the balanced projects that are in hand. The NPOPV project refers vessels and the commercial vessels what we have in hand. And of course we also expect a reasonable amount of orders which are on the annual coming army. Naturally the order book deficit currently is there will be stand up by NGP1 and at least 20 25% of the balance what is on the ticket. Thank you.
Unidentified Participant
So can we reasonably assume that FY28 will not see dip in terms of revenue because that be fair understanding.
P.R. Hari
No, I did not state. I did not state that. All I’m telling is that By Revenue by FY27 the current financial year, a couple of more projects would get completed and the remaining projects would give us revenue during the next year FY20.
Unidentified Participant
Okay. And sir, during these two years how should one look at. Because you’ve been guiding for high digit EBITDA margin while NDC will be in the design phase. So there will be some sort of de operating leverage also because your fixed cost will continue to remain elevated. So if you can guide for at least 2829 how the EBITDA margins will look like beyond 27
P.R. Hari
In case of FY28 and 29 we will try and maintain similar margins. I can only say we’ll try and maintain similar margins because at that point of time, the balance project which are currently in hand. I’m talking about the OPV project, or be it the commercial research vessel projects, they would be getting completed. So we’ll try and maintain similar margins during that year also.
Unidentified Participant
Okay.
P.R. Hari
And also 1/2 also in FY28 and 29, the NGC would start giving us revenue perhaps maybe to the tune of around 3 to 4 to 5% of the overall project cost, which is substantial. And the next year, when the construction start again, the project will start giving revenue. And I also mentioned that what is coming from NTC in the next financially as second half in the balance of the projects which are on the anvil. Let us take the P17 Bravo where only as of now, again, like the NGC, there are only four shipyards.
And with our kind of experience and expertise in building these vessels, we stand a very good chance of winning. And it produces a very big order. So even if you go by a conservative figure of GRFC becoming L2, forget LB. True L2 and the contract follows a similar pattern. Exactly one year from the time is getting completed the revenue recognition from seminal rail 29. So the deficit of the gap at this moment is not a concern. Not a great concern. This is my application.
Unidentified Participant
Fair enough, sir. Very elaborate. Thank you so much for a detailed answer. Really appreciate it. That’s it from mine.
Operator
Thank you. Next question is from the line of Ashish Gura from Antique Stockbroking. Please go ahead.
P.R. Hari
Yeah, sir, this is Sandeep here. Sir, my question was regarding the margins. So we’ve done very good margins in FY25 and 26 a bit by the write back of excess provision that you would have taken on the various major platforms that you are giving. So for the future, should we kind of adjust for this. Write back that we received that we booked
Unidentified Participant
To really look at the sustainable margin for the future, which could be around 9 to 10%.
P.R. Hari
Sorry, Mr. Ashes, could you repeat the question, please? Somehow your voice is sounding a bit distorted. Could you please repeat the question?
Unidentified Participant
Yeah, sir, what I was saying was that we did 8.3% EBITDA margin in FY25. Right?
P.R. Hari
Okay.
Unidentified Participant
Yeah.
P.R. Hari
Hello.
Unidentified Participant
Hello. Hello. Hello.
P.R. Hari
Hello, please. Word please. Word.
Unidentified Participant
Yeah. Sir, what I was saying was that we did 8.3% EBITDA margin in FY25 and then 11.6% in FY26. Now if we look to maintain margins, then should we adjust for the benefit that we receive from the that we took in the fourth quarter of FY25 and FY26 is that the right way to look at how the margins will pan out for the next few years?
P.R. Hari
See, all I can say, frankly the question was not clear. Purely not because of the. I couldn’t decipher properly. The voice is a bit distorted. But what I understand is you are asking about the EBITDA margin trend, what would continue in the current financial year. I can assure you that the current financial year the margins are going to be similar. That’s what I understand. You asked because it’s not clear.
Unidentified Participant
I was asking that if we adjust for the benefit that we took on account of the provision, write back
P.R. Hari
The fourth quarter of FY25 and FY26 sustainable margins are around maybe 9.5 to 10%. So that is the way margins
Unidentified Participant
Should
P.R. Hari
Work out for the future. Or we should go by the current
Unidentified Participant
Level of around 11.5% margin that we did in apartment
P.R. Hari
We will be able to maintain a similar margin. What you said last, we’ll be able to maintain similar margins in the coming year. That is the current year.
Unidentified Participant
That is 11, 11 and a half percent.
P.R. Hari
I really can’t say the expected. All I can say at this point we are only in the first quarter. All I can say is that we maintain a similar margin. Okay, thank you.
Operator
Thank you. Next question is from the line of Raja from Inam. Please go ahead.
Unidentified Participant
Hi sir, am I audible?
Operator
Yes, please go ahead with your question.
Unidentified Participant
So my first question is regarding the possibility of revenues in F28 from the aftermarket space for the platform that we have delivered last two, three years, say survey vessels in the earlier projects that we have delivered. Do you see that that spare revenue started start throwing up say in next two years, which could be a way to increase margins.
P.R. Hari
No, you. You’re mentioning that ships deliver during the last two years.
Unidentified Participant
Yes.
P.R. Hari
What is the. What is the question?
Unidentified Participant
Yeah, so for the shift has been delivered in last two to three years. Will the spare sales for those ships start reflecting our numbers in next two, three years? Which. Which could be a reason for margin upper trajectory.
P.R. Hari
I’ll tell you this way. The last two years the ships which were delivered one of course is the P7 Alpha Project. We had delivered two of the ships and survey vessels, we delivered four of them in the last year and last two years and four of the anti seminar watercraft projects. All of these projects are high value projects and all the orders for this equipment, the spares and equipment were placed much earlier and these prices were fixed. So we did not find any inflation coming or any impact. So the margins are Intact.
They have not been affected by any of the market fluctuations. So I. I think that is. I’m not sure that that is the question which you asked. Question was not clear, but we have been able to maintain good margins on these three projects.
Unidentified Participant
Okay. Okay. No issues. Got it. Sir, regarding this export market, do you see any new orders that you are eyeing up or any possibility of orders that will be coming in the next year or two?
P.R. Hari
Yes, definitely yes, definitely yes. Because most of the European ship owners are now looking at India because of two reasons. One, their standard destination, that is China, that jam packed with orders. So that is one reason. And the second reason is that they have found that the Indian pricing is affordable for them and competitive for them and so is the quality of the business. So few of the European clients are in dialogue with us and we are very confident that in the next year or so we should be able to conclude more contracts for commercial, especially from the European market.
So we see opportunity in this segment.
Operator
Thank you. Next question is from the line of Kavish Parikh from 361 Capital. Please go ahead.
P.R. Hari
Hi. Thanks for the opportunity. You did highlight that the order for NVC could be signed sometime in this quarter. Could you also share more details on the likely vendor
Unidentified Participant
Ecosystem for the project including the potential key suppliers and their respective workshares?
P.R. Hari
Yes, we are expecting the order for the contract for the NGC to be signed in the current quarter and for the next projects, that is the 120 fac, 31 wattage fac and the 17 bravo projects. We expect the RFPs to come out in the next three months. Also I had mentioned that three of the bids are currently live. The NPV, the bid submission is already taking place and for the otb for the Coast Guard and the interceptor boards, fiat bid submission is towards the end of this month or early next month. So conservative time if we take for the smaller projects from the time the bid is open, the contract could get signed within six months.
And for the large project like Tzarmin Bravo, based on our experience with ngc, it could take up to a year, nine months to a year.
Unidentified Participant
What I was trying to understand is specific to the NGT program, who would be the key vendors for you for the project? And it would also be helpful if you could share the electronic content within the overall program. So what proportion of the program value could be attributable to electronics and which major system to this include?
P.R. Hari
You are specifically asking about the NGC project with respect to the downstream vendors and okay, in the NGC project about 65% of the overall project cost is for the equipment and systems. And of these 65%, approximately about 55 to 60% is accounted by the electronics, that is the weapons, sensors and associated electronics. And the balance that is around 45 to 40 to 45% comes from the machinery and systems. That is like the propulsion engines, the air conditioning plants and the associated machinery systems.
And also the steel whiskers. So the electronics, large chunk of the electronics of course comes from sister psu, the Bharat Electronics. And since the field is competitive, there are a few other Indian OEMs who are in the field. Does it answer your question or do you want more information? We already started discussions with several of the OEMs as part of the preparation for the project. And once the contract is signed, we will be placing the downstream orders. So we expect the first of the downstream orders to be placed within three months of signing of the contract.
And between three to six. Here the customer is also involved since it is a big project dependent project. The customer is also associated. When the technical specifications are finally. So the majority of the orders will be placed between three to six months of signing of contract.
Unidentified Participant
So given that like you said, Bel will also have a role in this program, fair was in that once you are able to sign the
P.R. Hari
Contract with the customer, the contract in Bel will be signed somewhere around three to five months. Three to six months odd after your contract signing with the customer. Is that
Unidentified Participant
Absolutely
P.R. Hari
Perfect? Thank you so much sir. And all the way there.
Unidentified Participant
Thank you.
Operator
Thank you. Next question is from the line of Harsh Mulchandani from Toro Wealth Managers llp. Please go ahead.
Unidentified Participant
Thank you for the opportunity. So we meant to discuss that, you know, right now we are seeing good momentum. Even we have inquiries from the European companies because of our pricing advantage. So do we have enough capacities to take large orders from them? And is there a possibility to aim for even higher margins than what we have seen in the current year, which is obviously very good. But because we are globally competitive and we have good quality also, can we push position ourselves as a higher margin player also going forward?
From the company perspective,
P.R. Hari
Yes, the opportunities are good. The current projects we have taken because we wanted an entry into the commercial shipbuilding segment. So when we follow this current order with more orders, definitely we’ll be going for projects with higher margin and perhaps with more order value. Just to give you perspective, the project what we have taken on as multipurpose vessel, which is a medium sized YB state, the order value remaining is around,400, 2,500 crores. If you just take any of the naval projects, be it arithmetic node aircraft project, there are those ships that are very small ships but the cost per ship is rounding.
So each ship it almost comes to around 5,000, 5,500 crores. So what I’m trying to convey is that while the commercial shipbuilding export market looks attractive, the money and the margins are very much behind warshipbuilding. So what I had stated in the beginning of this discussion that about a 50,000 of RFPs which are on the anvil. So there is enough in that segment to meet the order book or profitability aspirations of the company. However, the commercial shipbuilding projects which are on demand, what we will be looking for is something definitely with good margin and projects which are attractive, like let us say hybrid platforms with complex proportions which are challenging as well as attractive.
To answer your question in a nutshell, yes, we’ll be going in for commercial building projects. You can see a few of them coming up in the next year or so with reasonably good margins. Otherwise we would not go in for any project with low margins, especially when we are concerned with commercial ship building export orders.
Unidentified Participant
Got it, thank
P.R. Hari
You.
Unidentified Participant
And just one more question I had to understand now with the commodities prices increasing, etc. So I’m assuming you would have a arrangement with the clients for cost pass through, but just wanted to get a sense that how is there any delays in general that we see with respect to these cost pass ons or it is these negotiations happen simultaneously on a monthly basis. How does it work on ground?
P.R. Hari
Thank you. Yes, there is the deviation or the desperation with respect to the cost of commodities. There has been an impact and so has there been an impact with respect to time coming to the cost factor. All the projects that we are currently executing, we have this and orders were placed much earlier. So there’s no cost inflation with respect to the existing orders that we have for the ongoing projects. The time delays are marginal because what we have seen is that there are minor delays with respect to steel or the industrial gas which contribute towards fabrication within the.
Yes, there is a marginal, very, very marginal insignificant impact which we are able to absorb in the overall scheme of things. For all the new contracts which we are yet to sign or where we are bidding. We factor this aspect of uncertainty also in the existing contracts. Just to say all the contracts are fixed price contracts and so are our orders with our subcontractors or so there is no, there is no impact as.
Unidentified Participant
Got it. Okay, thank you.
P.R. Hari
Thank you.
Operator
Thank you. Next question is from the line of Raheel Dasani from mapl. Please go ahead.
Unidentified Participant
Yeah, hi, I’m audible.
Operator
Yes, you’re audible. Please go ahead.
Unidentified Participant
Yeah. Good afternoon and thank you for this opportunity. I have a specific question regarding the ASW vessels. Are we still left with some equipment fitment on our vessels, the ones that we have commercialized? Especially as I believe without complete fitment post delivery, we don’t get the PPGs amount back, which I believe is some 10%. And from what I know, we were left with the sonar installment.
P.R. Hari
Can you repeat please? I didn’t get the question. Which project?
Unidentified Participant
The anti submarine warfare vessels, the few that we have commercialized and that are in the water as of date. I believe that without fitment of all the equipment on it, usually the government doesn’t give us the PBGs amount, which is usually 10% of the whole tender. If I’m not wrong. And from what I know, we were left with the installment of the sonars on that on those vessels.
P.R. Hari
Okay, since you asked a specific question, I will try and give a very clear answer. The stage payments for the naval projects as per the dap, that is the defense Acquisition procedure are absolutely clear. These are more than 15 stages of payment with the 14th stage coming at the time of delivery and the 15th stage that is the final stage coming after one year of warranty. To answer your question with respect to sonar, there are two types of sonar in the ship. One is the fixed sonar which is already been installed.
And the variable depth so that it is a developmental item is the bias finished item. We are not impacted by the non availability or availability of that item. What I’m trying to say, there is no financial impact with respect to the bank guarantees or pba.
Unidentified Participant
Got it. That’s very clear. And from what I understand, it’s in the development phase maybe and we haven’t installed it yet and hence. But there is still no financial liability or anything of the sort, right?
P.R. Hari
Absolutely.
Unidentified Participant
Got it. And with the upcoming NGC and the ngop, do they also have a similar sonar profile to the asw? Both surface as well as underwater sonar?
P.R. Hari
This is confidential information. You’re asking me the weapon fit of a platform you may like to approach.
Unidentified Participant
Got it. But maybe if you can share. At what stage of development is this sonar that we have to still work on or do we see that getting further delay? I
P.R. Hari
Would. This particular question I would suggest you get. Thank you. Thank you.
Unidentified Participant
Thank you.
Operator
Thank you. Next question is from the line of Sunil Shah from SRI pms. Please go ahead.
Unidentified Participant
Yeah, sir. Thanks for the opportunity. Sir. I missed a few points early on. And what I understand is that the P17 drowsy is broken up between 4 and 7. There are other two big ticket size orders which you mentioned. The 32,000 crores and the 35,000 crores. I believe those order announcements could be scheduled in FY28.
P.R. Hari
Sir, the
Unidentified Participant
Order
P.R. Hari
And
Unidentified Participant
The breakup. Could you kindly just
P.R. Hari
Repeat it for me please? I just missed that. Thank you. Mr. P17 Davo. The total number of ships and as per the AON accorded by the Defense Acquisition Council, this is the open source information. The project will be split between two shipyards, that is four and three. The L1 will get four and the L2 will get three coming to the next two projects. That is the mine founder Mashavakar project. It’s a 12 ship project. The OL value is around 32,000 crores. And it will be split between two shipyards.
So L1 shipyard getting eight and the L2 shipyard getting four. Coming to the LPD project. The order new. As my memory goes, it’s around 35,000 crores and it’ll be two plus two. That’s where these are the big ticket items, what it means.
Unidentified Participant
Right? So thanks. Thanks for sharing this. And this could be expected by FY28. So sir, my context is with your tenure. So would we all hear this great news whenever itifies from your kind self in FY28 itself or how does it work? I just want to know that. Sir,
P.R. Hari
First part. You may have to ask again. The first part. We expect the RFP for P17 rather award to come out in the current quarter. And RFP for the other two projects could come by end of the financial year. So if the RFP for the comes by first quarter, then the contract could be spent as early as the end of the current year. That is FY27 going by the NGC debt and other two projects. The next financier. Yeah. Sir, about your
Unidentified Participant
Tenure in the organization more than the orders. So you. You are there in this financial year as well as the next financial year. Or the pattern would be for somebody else. That’s my question. So your course in the organization. So you will be associated with garden trees even in FY27 and in FY28 as well. Yes, definitely. Thanks. Thank you so much. Thanks for all that.
P.R. Hari
Thank you.
Operator
Thank you. Ladies and gentlemen. We will take this as the last question for the day. I now hand the conference over to the management for the closing comments.
P.R. Hari
Thank you. And thank you Concept for arranging this conference. It was an interesting session and we had few interesting queries during the session. And as usual, I look forward to the investors and analysts late and looking forward to interacting with you all after we announce the results for the next Q1 FY27. Thank you.
Operator
Thank you, sir. On behalf of Garden Reach ShipBuilders and Engineers, Limited, that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.