Swaraj Engines Limited amended its Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) effective October 12, 2026. The revision aligns the company's internal policies with Regulation 8(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

The updated Code mandates prompt public disclosure of UPSI to ensure uniform dissemination and prevent selective disclosure. It designates the Whole-time Director as the Chief Investor Relations Officer (CIRO), who is responsible for overseeing disclosure to stock exchanges, analysts, and media. The CIRO must also address market rumors within 24 hours if they indicate impending material events.

Key provisions in the revised code

The amendment reinforces strict guidelines for handling interactions with analysts and institutional investors. Only publicly available information may be shared during these meetings. To ensure transparency, the company may record discussions and publish transcripts on its official website. Unanticipated questions involving price sensitive information must be addressed only after such information is made generally available.

Legitimate purpose framework

The Code includes a policy for determining "Legitimate Purposes" for sharing UPSI. This allows insiders to share information with designated persons, partners, lenders, customers, suppliers, merchant bankers, legal advisors, auditors, insolvency professionals, credit rating agencies, and bankers on a need-to-know basis. Recipients must maintain confidentiality and refrain from trading while in possession of UPSI.

Compliance and digital tracking

Swaraj Engines will maintain a structured digital database of persons receiving UPSI under legitimate purposes. This database will include names and Permanent Account Numbers (PAN) or other authorized identifiers. Any violation of the sharing policy will be treated as a breach, potentially resulting in disciplinary action and reporting to SEBI.

What the numbers show

While no financial metrics are disclosed in this regulatory filing, the structural emphasis on digital database maintenance and 24-hour rumor response times highlights a tightening of internal controls. The designation of the Whole-time Director as CIRO centralizes accountability for disclosure, reducing potential gaps in communication between management and the market.

Swaraj Engines reported a net profit of ₹606 million for the second quarter of FY27, marking a significant improvement from the ₹497 million recorded in the corresponding period last year.

The company’s revenue clocked in at ₹6,352 million, up from ₹5,040 million YoY. This top-line growth was accompanied by an increase in operating earnings, with EBITDA rising to ₹864 million from ₹680 million in the previous year’s comparable quarter. The Board of Directors approved these unaudited financial results on October 12, 2026.

Financial performance overview

The following table summarizes the key financial metrics for Q2FY27 compared to the prior year:

Volume and operational drivers

Engine sales volume stood at 61,216 units in Q2FY27, compared to 51,164 units in the corresponding quarter last year. This volume expansion directly supported the revenue jump. For the half-year ended September 30, 2026, engine sales reached 118,019 units, up from 100,204 units in H1FY26. The company attributes this growth to sustained customer demand.

What the numbers show

A closer look at the margin dynamics reveals that while revenue and EBITDA both expanded by approximately 27%, the EBITDA margin remained virtually flat, ticking up slightly from 13.5% to 13.6%. This suggests that cost structures scaled proportionally with revenue growth, preventing significant margin expansion despite the strong top-line performance. The net profit growth of 22% slightly trailed the revenue growth rate, indicating minor pressures below the EBITDA line or tax impacts not detailed in the summary.

Additionally, the balance sheet shows a notable shift in working capital dynamics. Trade receivables increased to ₹2,491 million as at September 30, 2026, from ₹2,062 million as at March 31, 2026. Concurrently, trade payables rose to ₹3,188 million from ₹2,483 million. While higher receivables can signal collection pressure, the simultaneous rise in payables suggests the company is leveraging supplier credit to fund its working capital needs during this phase of volume growth.