Shares of Garden Reach Shipbuilders & Engineers Ltd (GRSE) rose on Tuesday, April 29, 2025, supported by positive momentum across India’s defence sector. The rally in GRSE stock comes amid a series of developments strengthening investor confidence in India’s military modernisation and defence manufacturing push.
Tensions remain elevated at the Line of Control (LoC) between India and Pakistan following the Pahalgam terror attack on April 22, which triggered multiple ceasefire violations over the weekend. In response, India has taken several significant steps, including:
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Putting the Indus Water Treaty in abeyance,
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Halting operations at the Wagah Border, and
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Asking Pakistani citizens to leave the country.
On Monday, Defence Minister Rajnath Singh met with Prime Minister Narendra Modi to discuss further strategic actions.
Adding to the defence sector momentum, India and France officially signed a ₹63,000 crore deal for the procurement of 26 Rafale Marine aircraft for the Indian Navy. The Intergovernmental Agreement was exchanged in the presence of Defence Secretary Rajesh Kumar Singh and Navy Vice Chief Vice Admiral K. Swaminathan.
The Rafale Marine deal comes at a crucial juncture, aimed at strengthening India’s naval capabilities amid rising regional tensions. Business Upturn had earlier reported that the signing was imminent, and the ceremony was completed on Monday.
Earlier expert commentary from Captain Vishal Kanwar, Managing Director at PwC Advisory India, indicated that India is expected to increase its defence spending towards 4% of GDP by 2047. He also pointed to a major boost in capital expenditure and R&D within India’s defence budget.
GRSE, a leading shipbuilder for the Indian Navy, stands to benefit from the government’s rising focus on indigenous defence production and modernization initiatives.
At the time of reporting, GRSE shares were among the top defence sector gainers, reflecting positive investor sentiment toward India’s long-term strategic priorities.
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