Swastika Castal net profit falls 24% in FY26 as revenue grows 17%
- Net profit fell 24% YoY to ₹328.19 million in FY26, despite revenue growing 17% to ₹3,535.41 million
- Export sales drove growth, rising to ₹1,478.21 million from ₹1,018.54 million in the prior year
- AGM on September 18, 2026, will seek approval to shift registered office from West Bengal to Gujarat
- Board retained reserves for expansion, declaring no dividend for the fiscal year ended March 31, 2026
*this image is generated using AI for illustrative purposes only.
Swastika Castal reported a 24% decline in net profit after tax (PAT) for FY26, dropping to ₹328.19 million from ₹434.44 million in the prior year. The decline occurred despite a 17% rise in revenue from operations to ₹3,535.41 million, driven by increased export sales and other income.
The company attributed the lower bottom line to rising manufacturing and employee benefit expenses, which offset the top-line growth. Excluding a one-time prior-period income of ₹250.07 million that boosted FY25 profits, the operational performance showed improvement. The Board of Directors decided not to declare a dividend, opting to retain reserves for expansion plans.
AGM Agenda and Corporate Actions
The 30th Annual General Meeting is scheduled for September 18, 2026, at the Taj Bengal Business Centre in Kolkata. Shareholders will consider the adoption of audited financial statements for the fiscal year ended March 31, 2026.
A key special resolution seeks consent to shift the company's registered office from West Bengal to Gujarat. The move aims to facilitate administrative convenience and improve operational efficiency. The change requires approval by way of a Special Resolution under Section 12 of the Companies Act, 2013. Additionally, members will approve the reappointment of Mrs. Varsha Sharda as a director liable to retire by rotation and the appointment of M/s. Janki & Associates as Secretarial Auditor for five years.
Financial Performance
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹3,535.41 million | ₹3,014.18 million | +17.3% |
| Total Income | ₹3,619.09 million | ₹3,028.58 million | +19.5% |
| Profit Before Tax | ₹455.89 million | ₹587.10 million | -22.4% |
| Net Profit After Tax | ₹328.19 million | ₹434.44 million | -24.4% |
| Earnings Per Share | ₹4.02 | ₹7.24 | -44.5% |
Revenue from operations grew significantly, with export sales rising to ₹1,478.21 million from ₹1,018.54 million. Local sales also increased to ₹2,148.52 million. Other income surged to ₹83.68 million, primarily due to a net foreign exchange gain of ₹60.03 million, compared to ₹14.40 million in the previous year.
What the Numbers Show
The divergence between revenue growth and profit contraction highlights margin pressure. While total income rose nearly 20%, expenses before interest and depreciation jumped to ₹2,997.54 million from ₹2,513.14 million. Employee benefit expenses increased by 21% to ₹194.14 million, and manufacturing expenses rose to ₹978.75 million. The FY25 comparison is distorted by a ₹250.07 million prior-period income adjustment; without this non-recurring item, the underlying profit before tax for FY25 would have been ₹337.03 million, indicating that core operational profitability has actually expanded in FY26.
Balance Sheet and Cash Flow
Total assets grew to ₹4,357.96 million from ₹3,122.25 million, supported by proceeds from an Initial Public Offer (IPO) of ₹1,406.60 million. The company utilized these funds for capital expenditure, working capital, and general corporate purposes. Net debt position improved with short-term borrowings decreasing to ₹860.29 million from ₹720.07 million, while cash and cash equivalents stood at ₹13.14 million. Trade receivables increased to ₹1,339.02 million, reflecting higher sales volumes.
Historical Stock Returns for Swastika Castal
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.98% | -11.59% | +32.46% | +114.81% | +27.67% | +67.17% |
How will the relocation of the registered office to Gujarat impact Swastika Castal's tax liabilities and operational cost structure in the medium term?
Given the 21% rise in employee benefit expenses, what specific retention or expansion strategies is the company pursuing that justify this increased overhead?
With the board opting to retain reserves for expansion instead of declaring dividends, what specific capital expenditure projects are prioritized for FY27?
18
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
