New Swan Multitech FY26 results: Revenue up 10.9%, PAT falls 16.8%
New Swan Multitech posted FY26 revenue of ₹177.2 crore, up 10.9% YoY, but PAT fell 16.8% to ₹9.6 crore due to margin pressures from raw material costs and product mix shifts. EBITDA contracted 5% to ₹22.1 crore. The company plans to expand its agricultural dealer network by 347 outlets and target 173% volume growth in FY27, aiming for margin recovery through improved capacity utilization and cost optimization.
*this image is generated using AI for illustrative purposes only.
New Swan Multitech Limited reported a 10.9% year-on-year increase in revenue to ₹177.2 crore for the financial year ended March 31, 2026. Despite the top-line growth, the company’s profitability faced headwinds, with profit after tax (PAT) declining 16.8% to ₹9.6 crore. The margin compression was attributed to higher input costs, a shift toward lower-margin products, and initial expenses associated with capacity expansion.
The diversified engineering platform, which operates across automotive components and agricultural equipment, saw its EBITDA contract by 5.0% to ₹22.1 crore. Consequently, the EBITDA margin narrowed by 210 basis points to 12.4%, down from 14.5% in FY25. Return on equity (ROE) also moderated to 11.3% from 14.2% in the previous year.
Financial Performance
The company’s automotive components segment remained the primary cash engine, contributing 80.9% of total revenue. The agricultural equipment business, branded under Swan Agro, accounted for the remaining 19.1%. While revenue grew, cost of materials consumed rose to ₹103.6 crore from ₹99.3 crore in FY25. Employee benefits and other operating expenses also increased, reflecting strategic investments in manpower and operational scale-up.
| Metric | FY26 (₹ Cr) | FY25 (₹ Cr) | YoY Change |
|---|---|---|---|
| Revenue | 177.2 | 159.7 | +10.9% |
| EBITDA | 22.1 | 23.2 | -5.0% |
| Net Profit | 9.6 | 11.5 | -16.8% |
| EBITDA Margin | 12.4% | 14.5% | -210 bps |
What the Numbers Show
A significant divergence emerged between top-line growth and bottom-line performance in FY26. While revenue expanded by nearly 11%, EBITDA declined, indicating that operating leverage was not realized during the period. The EBITDA bridge reveals that while revenue growth added ₹18.3 crore to earnings, this was largely offset by a ₹7.3 crore increase in raw material costs and a ₹4.6 crore impact from product mix changes. This suggests that volume gains were insufficient to absorb input inflation and the lower contribution margins from specific product lines.
Balance Sheet and Working Capital
As of March 31, 2026, New Swan Multitech’s net worth stood at ₹88.4 crore, up 10.8% from ₹79.8 crore in FY25. Total assets increased marginally to ₹165.8 crore. The company’s gross debt was ₹37.3 crore, with cash and equivalents of ₹2.1 crore, resulting in a net debt of ₹35.2 crore.
Inventory levels rose to ₹77.8 crore, primarily due to seasonal stocking of agricultural equipment ahead of peak sowing demand. Management indicated that inventory days normalized to approximately 125 days during the year but are expected to return to 55-60 days post-season. Operating cash flow remained negative at -₹19.6 crore, impacted by this working capital build-up.
Growth Strategy and Outlook
For FY27, management has outlined a recovery roadmap focused on improving capacity utilization and optimizing costs. The agricultural segment is set for aggressive expansion, with plans to add 347 new dealers across key markets including Maharashtra, Uttar Pradesh, and Punjab. The company targets a sales volume of 15,544 units for FY27, representing a projected growth of 173% over current levels.
In the automotive segment, New Swan Multitech is leveraging long-standing relationships with OEMs such as Honda Motorcycle & Scooter India (HMSI), MG Motor, and Matter Motor. The company estimates an additional business potential of ₹36.00 to ₹40.00 crore per annum from new part developments and expanded wallet share with existing customers. Management expects EBITDA margins to recover gradually, targeting ~13.2% in FY27 and ~16.5% by FY29 as operational efficiencies take hold.
Historical Stock Returns for New Swan Multi Tech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.05% | +2.50% | -3.36% | -11.26% | -39.30% | -67.27% |
How will New Swan Multitech mitigate the risk of raw material price volatility impacting the projected EBITDA margin recovery to 13.2% in FY27?
What specific operational efficiencies or cost-control measures are planned to offset the initial expenses associated with capacity expansion in the agricultural segment?
Given the negative operating cash flow of -₹19.6 crore, how does management plan to fund the aggressive dealer network expansion without increasing net debt significantly?
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