Swaraj Engines Q1 FY27 Results (NSE: SWARAJENG)
Signal: Steady quarter
The read
Revenue grew strongly (+21.5% YoY) on volume of 56,803 engines (best ever quarterly sales), but input cost pressure (raw materials at 78.96% of revenue vs 77.26% a year ago) compressed EBITDA margin by 80bps YoY; PAT growth of 11.1% trailed revenue growth. The all-time high PBT signals robust demand, but the core operating margin trend warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹588.39 Cr | 21.5% | 7.8% |
| EBIT | ₹74.64 Cr | 11.1% | |
| Net profit | ₹55.53 Cr | 11.1% | |
| EPS | ₹45.7 | 11.1% | |
| EBIT margin | 13.04% |
P&L walk
Revenue grew 21.5% YoY driven by volume (+15.8%) and likely positive realisation/mix, but cost of materials consumed rose to 78.96% of revenue (from 77.26% a year ago) squeezing EBITDA margin by 80bps; PAT growth lagged revenue due to the margin compression and slightly higher other expenses.
Key positives
- Record quarterly engine sales of 56,803 units, up 15.8% YoY; revenue grew 21.5% YoY to ₹588.39 Cr.
- All-time high quarterly PBT of ₹74.64 Cr, up 11.1% YoY.
- Zero debt (D/E=0); finance cost negligible at ₹9 lakh.
- Cumulative engine sales crossed 2 million mark since inception.
Key concerns
- EBITDA margin contracted 80bps YoY to 13.04% as raw material cost rose to 78.96% of revenue (up 170bps).
- PAT growth (11.1%) significantly lagged revenue growth (21.5%) due to margin compression and higher other expenses.
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