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.

Swaraj Engines Limited has issued a postal ballot notice seeking member approval for the appointment of Sanjay Kshirsagar as Whole Time Director and Chief Executive Officer. The proposal follows his designation as CEO designate in April 2026 to ensure seamless succession from Devjit Sarkar.

Kshirsagar, aged 57, brings over 34 years of experience in manufacturing operations and projects. Prior to this role, he oversaw engine plants at Mahindra & Mahindra, driving significant volume ramp-ups for passenger and commercial vehicles. His expertise includes machine shops, assembly lines, and manufacturing digitization.

The proposed tenure spans three years, effective from September 1, 2026, to August 31, 2029. The remuneration package includes a basic salary of ₹1,69,955 per month, with a scale ranging from ₹1,50,000 to ₹3,00,000 per month. Perquisites are capped at 300% of annual basic salary, covering housing, medical, and transport benefits.

Performance pay is linked to both individual and company performance, not exceeding 175% of the annual basic salary. Additionally, he is eligible for Employee Stock Options (ESOPs) as determined by the Nomination and Remuneration Committee. The total remuneration must comply with limits under Section 197 of the Companies Act, 2013.

Financial context and succession

The appointment coincides with the completion of Devjit Sarkar’s tenure on August 31, 2026. Swaraj Engines reported a net profit after tax of ₹196.40 crore for FY26, with net worth standing at ₹488.92 crore. The company operates in the diesel engine manufacturing sector, having commenced commercial production in 1989.

What the numbers show

The proposed remuneration structure highlights a performance-driven approach, with variable components (performance pay up to 175% of basic) significantly outweighing the fixed basic salary component. This aligns executive incentives with operational outcomes, critical for a capital goods manufacturer focused on volume ramp-ups and efficiency improvements like the 'Engine No Testing' initiative previously driven by Kshirsagar at Mahindra.

Remote e-voting for the resolutions commenced on September 23, 2026, and concludes on October 22, 2026. Members holding shares as of the cut-off date, September 18, 2026, are eligible to vote electronically via NSDL.