Sawaca Enterprises reported a net loss of ₹41.16 lakh for FY26, widening from a loss of ₹34.89 lakh in the previous year. The decline was driven by a sharp contraction in operational revenues.

The company's total revenue from operations dropped 53.84% to ₹3,796.79 lakh from ₹8,225.12 lakh in FY25. Total expenses decreased proportionately to ₹4,002.10 lakh from ₹8,369.71 lakh. Despite the lower operating loss before tax of ₹10.96 lakh compared to ₹9.22 lakh previously, higher tax expenses contributed to the widened bottom-line deficit.

Financial Performance

The deterioration in top-line growth was accompanied by rising finance costs and depreciation. Finance costs surged to ₹23.15 lakh from ₹5.97 lakh, while depreciation expense more than doubled to ₹29.69 lakh from ₹16.12 lakh. Other income increased to ₹216.27 lakh from ₹153.81 lakh, primarily due to higher interest income.

Balance Sheet & Liquidity

Total assets stood at ₹6,849.19 lakh as on March 31, 2026, slightly down from ₹6,967.79 lakh a year ago. Non-current assets rose significantly to ₹4,334.04 lakh from ₹2,568.97 lakh, driven by an increase in loans to ₹3,834.17 lakh from ₹1,945.02 lakh. Conversely, current assets fell to ₹2,515.15 lakh from ₹4,398.82 lakh.

Borrowings increased substantially. Current borrowings jumped to ₹310.56 lakh from ₹7.38 lakh, while non-current borrowings declined to ₹59.66 lakh from ₹260.30 lakh. The debt-equity ratio improved marginally to 0.06 from 0.05.

Corporate Governance & AGM

Sawaca Enterprises has scheduled its 32nd Annual General Meeting for September 30, 2026. The meeting will be conducted via Video Conferencing or Other Audio Visual Means. Shareholders will consider the re-appointment of Mr. Satish R Shah as a director and approve his continuation beyond the age of 75 years.

Remote e-voting will be available from September 27 to September 29, 2026. The cut-off date for voting eligibility is September 23, 2026. M/s Mukesh H. Shah & Co. has been appointed as the scrutinizer for the voting process.

Board Changes

During the year, Mr. Vijay Shah and Mrs. Lilaben Agaja resigned from the board effective September 4, 2025. They were replaced by Mr. Kishor Agaja and Mrs. Binaben Shah, who were appointed as additional non-executive independent directors and regularized at the 31st AGM. Mr. Shetal S. Shah continues as Chairman, Managing Director, and CFO.

Sawaca Enterprises Limited sawaca enterprises reported a net profit of ₹90.81 lakh for the quarter ended June 30, 2026, marking a significant improvement from the net loss of ₹106.18 lakh recorded in the previous quarter. The company’s revenue from operations rose 27% year-on-year to ₹312.86 lakh, up from ₹846.87 lakh in the same period last year.

The Board of Directors approved the unaudited financial results on August 14, 2026. The figures were reviewed by statutory auditors Shah Sanghvi & Associates, who issued a limited review report confirming compliance with SEBI Listing Regulations and Ind AS 34 standards.

Financial Performance

Revenue from operations stood at ₹312.86 lakh in Q1FY26, compared to ₹312.86 lakh in the immediate prior quarter (Q4FY25) and ₹846.87 lakh in Q1FY25. Total income reached ₹465.41 lakh, aided by other income of ₹152.55 lakh, which included interest and dividend income.

Total expenses were contained at ₹343.60 lakh, down significantly from ₹1,299.11 lakh in the previous quarter. This reduction was driven primarily by lower purchases of stock-in-trade (₹309.39 lakh vs ₹1,223.17 lakh) and reduced finance costs (₹9.47 lakh vs ₹18.11 lakh).

Segment Details

The company operates primarily through its trading segment, which generated a segment result of ₹121.81 lakh for the quarter. The information technology consulting and support service segment reported no revenue or results during the period. Investment or trading activities in shares also showed nil activity in Q1FY26, unlike the previous year where such activities contributed to losses.

What the Numbers Show

The turnaround in profitability is heavily influenced by non-operating items. Other income contributed ₹152.55 lakh to total income, while the trading segment’s operating result was ₹121.81 lakh. However, total tax expense amounted to ₹31.00 lakh, including deferred tax provisions of ₹21.05 lakh. The sharp decline in expenses compared to the prior quarter—where finance costs and stock purchases were substantially higher—highlights the volatility in the company’s operational scale between quarters.