New Swan Multitech approved its audited annual results for FY26 and recommended a final dividend of ₹0.50 per equity share. The Board of Directors held its meeting on September 5, 2026, in Ludhiana, Punjab.

The company reported revenue from operations of ₹17,723.36 lakh for the financial year ended March 31, 2026, an increase from ₹15,974.93 lakh in the previous year. However, net profit after tax declined to ₹958.56 lakh compared to ₹1,151.72 lakh in FY25.

Financial Performance

Revenue growth was driven by higher sales in agricultural implements, which rose to ₹7,163.06 lakh from ₹4,190.69 lakh. Conversely, auto parts revenue fell to ₹10,029.33 lakh from ₹11,578.83 lakh. Total expenses increased to ₹16,492.90 lakh from ₹14,628.08 lakh, primarily due to higher other expenses and employee benefits.

Dividend and AGM Details

The board recommended a final dividend at the rate of 5% on equity shares with a face value of ₹10 each. The dividend is subject to shareholder approval at the 12th Annual General Meeting (AGM). The record date for determining eligibility for remote e-voting and dividend receipt is fixed as September 23, 2026.

Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 91 of the Companies Act, 2013, the Register of Members and Share Transfer Books will remain closed from September 25, 2026 to September 30, 2026 (both days inclusive). This closure facilitates the record for the 12th AGM scheduled for September 30, 2026.

The 12th AGM will be held on September 30, 2026, at 3:00 pm through Video Conferencing or Other Audio Visual Means. M/s M.G. Jindal & Associates has been appointed as the scrutinizer for the e-voting process. If declared and approved at the AGM, the final dividend will be paid within 30 days.

Management and Governance Updates

The board proposed the reappointment and redesignation of Mr. Barunpreet Singh Ahuja as Whole-Time Director for five years, effective from September 1, 2026, to August 31, 2031. His remuneration is set at ₹6 lakh per month. This appointment requires shareholder approval.

Additionally, the board appointed M/s NCLS & Associates as internal auditors for FY27, fixing their remuneration at ₹6 lakh per year for each plant. The company also sought approval for amendments to the Articles of Association to include a "Waiver of Dividend" clause.

Related Party Transactions

The board approved material related-party transactions with M/s New Swan Enterprise, aggregating up to ₹100 crore for FY27. These transactions involve the sale, purchase, lease, or supply of finished or semi-finished goods and equipment. During FY26, purchases from this related party totaled ₹5,650.52 lakh, while sales amounted to ₹1,567.51 lakh.

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.

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.