Swaraj Engines Limited Earnings Summary — Q1 FY2027
Swaraj Engines Achieves Record Results with All-Time High Quarterly Profit and 22% Revenue Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹588 Cr is 21.5% higher year-on-year.
- Revenue has compounded at 25.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹56 Cr is 11.1% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 22.5% annualised across the period.
- Operating margin stands at 13.1% in Q1 FY2027.
- Operating margin compressed by 81 bps year-on-year.
- Over the last two years operating margin has contracted by 88 bps.
- PBT margin is 12.7%.
- Expenses grew 22.7% against revenue growth of 21.5%.
- Operating profit of ₹77 Cr is 14.4% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 70/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 588 | 546 | 473 | 504 | 484 | 454 | 346 | 464 | 418 | 351 |
| Expenses | Improving | 512 | 471 | 411 | 436 | 417 | 392 | 301 | 401 | 360 | 303 |
| Operating Profit | Improving | 77 | 75 | 62 | 68 | 67 | 62 | 44 | 63 | 58 | 48 |
| Operating Margin | Stable | 13.1% | 13.7% | 13.1% | 13.5% | 13.9% | 13.6% | 12.8% | 13.5% | 13.9% | 13.7% |
| Other Income | Volatile | 4 | 4 | 0 | 5 | 6 | 5 | 4 | 4 | 4 | 3 |
| Interest | Improving | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Improving | 6 | 5 | 6 | 6 | 5 | 5 | 5 | 6 | 5 | 4 |
| Profit Before Tax | Improving | 75 | 73 | 56 | 67 | 67 | 61 | 43 | 61 | 58 | 47 |
| Tax | Improving | 19 | 19 | 14 | 17 | 17 | 16 | 11 | 16 | 15 | 12 |
| Net Profit | Improving | 56 | 55 | 42 | 50 | 50 | 45 | 32 | 45 | 43 | 35 |
| Net Margin | Stable | 9.4% | 10.0% | 8.9% | 9.9% | 10.3% | 10.0% | 9.3% | 9.8% | 10.3% | 10.0% |
Key Takeaways
- Achieved all-time high quarterly engine sales volume of 56,803 units, growing 15.8% YoY.
- Reached a significant milestone with cumulative sales volume crossing 2 million engines since inception.
- Net operating revenue increased 21.5% YoY to ₹588.39 crore, supported by robust demand for tractor engines.
- EBITDA for the quarter rose by 14.4% to ₹76.76 crore, though EBITDA margins slightly contracted compared to the same period last year.
- Profit Before Tax (PBT) reached a record high of ₹74.64 crore for the quarter.
- The company maintains a strong, debt-free balance sheet with efficient working capital management.
- Remains highly dependent on the performance of the Swaraj Division of Mahindra & Mahindra, its primary customer.
Management Guidance
Management indicated that performance was driven by a backdrop of robust engine demand and remains focused on capacity readiness and manufacturing productivity to support Mahindra & Mahindra's tractor segment.
Sentiment Shift
Improving
Record-breaking volumes and profitability milestones indicate strong momentum in the tractor engine segment, despite slight margin compression from rising raw material consumption costs.
Outlook
The outlook remains positive contingent on agricultural mechanization trends and the performance of the Mahindra Swaraj brand, though remains sensitive to monsoon cycles and emission norm transitions.
From the Annual Report (Key Quotes)
“Swaraj Engines Limited (SEL) posted yet another strong quarterly financial performance and recorded its highest ever engine sales and profit for any quarter.”
“Cumulative sales volume crossed 2 million mark since inception.”
“In the backdrop of robust engine demand... SEL posted... its ever best quarterly engine sales volume and PBT.”
Official Quarterly Documents
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This summary is AI-generated from Swaraj Engines Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.