Swan Defence and Heavy Industries Limited posted a net profit of ₹567.10 crore for the quarter ended September 30, 2026, reversing from a loss in the previous year. This sharp turnaround was primarily driven by a one-time tax provision write-back linked to the recent amalgamation with Triumph Offshore Private Limited (TOPL).

The company’s Board approved the unaudited standalone and consolidated financial results during a meeting held on October 12, 2026. Revenue from operations stood at ₹68.85 crore for the quarter, marking a significant increase from ₹39.57 crore in the corresponding period last year. However, the headline profit figure is heavily influenced by non-operational adjustments rather than core business performance.

Financial Performance Overview

Note: Figures converted from Lakhs to Crore for readability (1 Crore = 100 Lakhs).

What the Numbers Show

A critical divergence exists between the company’s operational profitability and its bottom line. While revenue grew 74% year-on-year to ₹68.85 crore, the profit before tax actually declined by 26% to ₹3.95 crore. The massive jump in net profit to ₹567.10 crore is entirely attributable to a ₹563.15 crore excess provision of earlier years written back in the books.

This write-back stems from the reassessment of tax provisions carried in the books of the Transferor Company (TOPL) post-merger. Consequently, the reported EPS of ₹107.65 does not reflect sustainable operational earnings. Investors should note that excluding this exceptional item, the underlying PBT remains modest at ₹3.95 crore against total expenses of ₹121.73 crore.

Balance Sheet and Cash Flow Dynamics

The balance sheet reflects significant changes due to the pooling-of-interests method used for the TOPL amalgamation. Total assets decreased to ₹389.11 crore as of September 30, 2026, from ₹544.52 crore as of March 31, 2026. This reduction is largely driven by a decrease in non-current financial assets, which fell from ₹205.29 crore to ₹77.82 crore.

Cash and cash equivalents declined to ₹8.75 crore from ₹18.41 crore at the start of the fiscal year. Despite the negative movement in cash balances, operating activities generated a positive cash flow of ₹44.74 crore, aided significantly by a ₹42.68 crore release in trade and other receivables.

Strategic Context: TOPL Amalgamation

The results incorporate the effects of the scheme of arrangement for the amalgamation of Triumph Offshore Private Limited with Swan Defence. The National Company Law Tribunal (NCLT) approved this merger, with an effective date of September 17, 2026.

Key implications include:

• Allotment of 159.49 crore preference shares to TOPL equity shareholders.
• Restatement of comparative financial information from April 1, 2024.
• Recognition of a net surplus of ₹9.29 crore credited to retained earnings up to the effective date.

Swan Defence & Heavy Industries is set to secure an order valued at ₹1,897 crore for the construction of four oil product tankers.

Order details

The contract represents a significant development for Swan Defence in the shipbuilding and defence manufacturing segment. The order covers the construction of four oil product tankers, with the total contract value standing at ₹1,897 crore.

The order underscores Swan Defence's positioning in the domestic shipbuilding sector, where demand for oil product tankers remains a key segment for naval and commercial vessel manufacturers.