Swan Defence and Heavy Industries Ltd (SWANDEF) Q2 FY27 Results Analysis: Tax Write-Back Lifts PAT, Revenue Jumps 74%
Swan Defence and Heavy Industries Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 6,884.65 Cr (+74.00% YoY) and PAT growth of -25.90% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 12, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 6,884.65 Cr (+74.00% YoY) |
| PAT (Q2) | Rs. 56,710.44 Cr (-25.90% YoY) |
| EBITDA margin | -24.70% (-450 bps YoY) |
| EPS (Q2) | Rs. 107.65 (-25.90% YoY) |
| Market cap | Rs. 15,887.82 Cr |
| CMP | Rs. 2,931.10 |
Quarter Snapshot
Revenue grew 74% YoY to Rs.6,884.65 Cr, but reported PAT of Rs.56,710.44 Cr (EPS Rs.107.65 vs −Rs.0.19) was entirely a one-time Rs.56,315.17 Cr tax provision write-back, with normalized PAT of Rs.395.27 Cr (normalized EPS Rs.0.75) down 25.9% YoY as expenses grew 87.5%. EBITDA stayed negative at −Rs.1,701.96 Cr (−24.7% margin) with finance costs up 748% YoY, while the TOPL amalgamation cut borrowings 58.7% and lifted net worth 29.9% to a 0.51x Debt/Equity. No management guidance exists to benchmark against, and the Svitzer tug order (Rs.251–Rs.750 Cr, deliveries from 2028) is the first disclosed order-book anchor.
Key Investment Insights
Key Positives
- Revenue from operations grew 74% YoY to Rs.6,884.65 Cr, up 124.9% QoQ, on restated post-merger comparatives
- Total borrowings fell 58.7% to Rs.1,14,438.50 Cr, with Debt/Equity improving from 1.59x to 0.51x
- Net worth rose 29.9% to Rs.2,26,198.80 Cr following the TOPL amalgamation capital reorganisation
- EBITDA loss narrowed to −Rs.1,701.96 Cr (−24.7% margin) from −Rs.2,101.43 Cr (−68.7% margin) in Q1 FY27
- Svitzer order for 4 tugs (Rs.251–Rs.750 Cr value bracket, deliveries from 2028) provides the first disclosed order-book anchor
- H1 operating cash flow before working capital changes of Rs.1,176.12 Cr versus −Rs.30,944.70 Cr in FY26
Risk Factors
- Reported PAT of Rs.56,710.44 Cr is entirely a one-time Rs.56,315.17 Cr excess tax provision write-back; normalized PAT is Rs.395.27 Cr
- Normalized PAT declined 25.9% YoY (Rs.533.42 Cr to Rs.395.27 Cr) as total expenses grew 87.5% YoY against 74% revenue growth
- Finance cost of Rs.1,932.10 Cr, up 748% YoY and 14% QoQ, on non-current borrowings of Rs.1,14,438.50 Cr
- EBITDA negative for the third consecutive quarter at −Rs.1,701.96 Cr (−24.7% margin)
- Other income of Rs.5,683.80 Cr (45.2% of total income) dwarfs PBT of Rs.395.27 Cr; operations are loss-making before other income
- Auditor noted three subsidiaries' interim financials were unavailable and associate Conceptia's financials unaudited (both deemed immaterial); associate loss of Rs.66.68 Cr in Q2
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.