Swastika Infra Q2 FY27 Earnings Call — Analysis (NSE: SWASTIKAIN)
Swastika Infra reported strong Q2FY27 revenue growth of 42% YoY to ₹188 Cr with an unexecuted order book reaching ₹1,420 Cr, driven by large T&D project wins.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹188 Cr ( +42% YoY ) . New guidance — Q4FY27 fy27 closing order book ₹1500-2000 Cr . New story: Pre-qualification and ticket size escalation .
Results
Q2FY27 Revenue reached ₹188 Cr (+42% YoY), EBITDA rose 62% YoY to ₹27 Cr (14.4% margin), and PAT grew 75% YoY to ₹16 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹188 Cr | +42% | yoy · Q2FY27 · vs Q2FY26 |
| EBITDA | ₹27 Cr | +62% | yoy · Q2FY27 · vs Q2FY26 |
| PAT | ₹16 Cr | +75% | yoy · Q2FY27 · vs Q2FY26 |
| Revenue from Operations | ₹207 Cr | +5% | yoy · H1FY27 · vs H1FY26 |
| EBITDA | ₹35 Cr | +28% | yoy · H1FY27 · vs H1FY26 |
| PAT | ₹20 Cr | +36% | yoy · H1FY27 · vs H1FY26 |
| Unexecuted Order Book | ₹1,420 Cr | point_in_time · Q2FY27 · As of Sep-2026 |
Guidance
Management targets closing FY27 with an order book of ₹1,500–2,000 Cr and expects full-year revenue growth and EBITDA margins (~14%) in line with historical trends.
What management committed to
- Swastika Infra expects to close [FY27] with an unexecuted order book ranging between ₹1,500 crores and ₹2,000 crores. — INR 1500-2000 crores, Q4FY27
- Full-year [FY27] EBITDA margins are expected to normalize around 14%. — Around 14%, FY27
- Swastika Infra plans to bid for ₹1,000 to ₹1,500 crores in new tenders and expand operations into two to three additional states in [H2FY27]. — INR 1,000, INR 1,500 crores, FY27
- Swastika Infra is expecting project closure of a ₹325 crore project in the next two months to qualify to bid for single size orders of ₹1,000 crores. — INR325 crores, Q3FY27
- The ~₹600 crore order received from Maharashtra will be executed over a 2-year timeline. — INR600 crores, Q2FY29
Key themes
Scaling order book and qualification expansion
How the narrative shifted
- Pre-qualification and ticket size escalation: Management emphasizes graduating from small projects to bidding for ₹1,000 Cr+ single turnkey EPC packages with fewer competitors.
- Discipline in counterparty and funding selection: Focusing only on tenders funded by multilateral institutions (World Bank, ADB) or state-backed lenders (REC, PFC) with complete price escalation clauses.
- Underground cabling tailwinds: Positioning underground cabling as a massive multi-year tailwind noting only ~20% of urban/semi-urban cabling in India is completed.
- Seasonality and working capital normalization: H1 execution is subdued and working capital builds up, but H2 delivers heavy execution and cash collection as government budgets release.
Operational commentary
- Secured a large ~₹600 Cr underground cabling and distribution order in Maharashtra funded by ADB, with a 2-year execution timeframe.
- Order book mix stands at 85% distribution, 8% renewable energy EPC, and 6% transmission EPC across 9 active states.
- Bidding pipeline of ₹1,000–1,500 Cr planned for near term with plans to enter 2 to 3 additional states.
- Expecting closure of a ₹325 Cr project in the next two months, which will elevate pre-qualification credentials to bid for single project tickets of ₹1,000 Cr.
- Transitioning from bank guarantees to surety bonds to reduce funding costs and ease working capital constraints.
Analyst Q&A
Q. What drove the margin expansion in Q2FY27 and what is the sustainable margin level going forward?
Q2 margins benefited from higher revenue composition of erection/commissioning milestones and final bill closures; full-year EBITDA margins are expected to normalize around 14%.
Q. What caused the revenue degrowth in Q1FY27 and how will working capital evolve?
Q1 execution was slowed deliberately due to commodity price volatility and supply chain uncertainties linked to global disruptions; working capital needs peak in H1 and ease in H2 as government budgets clear.
Q. What specific states is Swastika Infra expanding into?
Management declined to name specific states due to competitive reasons, but stated they are preparing bids in 2 to 3 new states.
Q. What contractual safeguards exist against input price volatility and project delay penalties?
All contracts contain back-to-back monthly price variation escalation clauses without ceiling limits, and the company has had zero liquidated damages or delays across historical projects.
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