GRSE Fined ₹19.54 Lakh by NSE and BSE for Board Composition Non-Compliance

Garden Reach Shipbuilders & Engineers (GRSE), a Central Public Sector Enterprise under the Ministry of Defence, has been fined a total of ₹19.54 lakh by the National Stock Exchange (NSE) and BSE Limited for non-compliance with board composition requirements. The fines were imposed due to the absence of required Independent Directors, including a Woman Independent Director, during the quarter ended September 30, 2025.

Non-Compliance Details

Regulation	Non-Compliance Issue
Reg 17(1)	Lack of required Independent Directors, including Woman Independent Director
Reg 18(1)	Non-constitution of Audit Committee
Reg 19(1)/19(2)	Non-constitution of Nomination and Remuneration Committee

Fine Breakdown

Stock Exchange	Fine Amount (including GST)
NSE	₹9,77,040.00
BSE	₹9,77,040.00
Total	₹19,54,080.00

GRSE has responded to the notices by submitting a letter (No. GRSE/BD-69/CG/Q2/2025-26 dated 29 Nov 2025) requesting a waiver of the fines. The company cited that, as a Central Public Sector Enterprise, the appointment of directors, including Independent Directors, is controlled by the Government of India through Presidential Orders and is beyond the company's control.

Key Points:

GRSE is under the administrative control of the Ministry of Defence, with the President of India acting as the Promoter of the Company.
The company has emphasized that the non-compliance has arisen due to the non-appointment of Independent Directors by the Government of India.
GRSE continues to actively pursue the matter with the Government of India through the Ministry of Defence for the timely appointment of the requisite number of Independent Directors.
The company aims to ensure compliance with Corporate Governance norms as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This incident highlights the unique challenges faced by Central Public Sector Enterprises in complying with regulatory requirements, particularly when key governance decisions are controlled by government entities. It also underscores the importance of timely appointments to ensure proper board composition and compliance with listing regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.35%	-8.41%	-0.20%	-24.00%	+43.61%	+1,196.95%

Garden Reach Shipbuilders and Engineers Ltd (GRSE) witnessed a significant rally in its stock price following the announcement of strong quarterly results. The company's shares jumped 7% to Rs 2,748, reflecting investor enthusiasm for its impressive financial performance.

Financial Highlights

GRSE reported substantial growth across key financial metrics for the second quarter:

Metric	Q2 FY24	Q2 FY23	YoY Growth
Net Profit	154.00	98.00	57.00%
Total Income	1,746.00	1,230.00	42.00%
Revenue from Operations	1,677.00	1,157.00	45.00%
EBITDA	225.00	144.00	56.00%

The company's performance demonstrates robust growth across all major financial indicators, with net profit showing the most significant increase at 57% year-over-year.

Half-Year Performance

GRSE's strong performance extended to its half-yearly results as well:

Metric	H1 FY24	YoY Growth
Total Income	3,128.00	35.00%
Net Profit	274.00	48.00%

These figures indicate sustained growth and financial stability for the company over a broader timeframe.

Management Outlook

The management of GRSE expressed confidence in maintaining strong financial performance for the remainder of the fiscal year. This optimism is underpinned by a robust order book and clear order visibility, suggesting potential for continued growth in the coming quarters.

Market Response

The market responded positively to GRSE's financial results:

Shares were trading at Rs 2,692, up 4.6% at the time of reporting
Year-to-date gain stands at an impressive 63%

This significant year-to-date gain reflects strong investor confidence in Garden Reach Shipbuilders' business model and growth prospects.

The company's ability to deliver substantial growth in revenue and profitability, coupled with management's positive outlook, positions GRSE favorably in the eyes of investors. However, as with all investments, it's crucial for investors to conduct thorough research and consider market risks before making investment decisions.