Swaraj Engines Reports Record Q3FY26 Results with 31.8% PAT Growth
Swaraj Engines Limited reported exceptional Q3FY26 results with record engine sales of 47,563 units and revenue of ₹473.20 crores, representing 37% growth. The company achieved PAT of ₹42.10 crores with 31.8% growth, while nine-month PAT reached ₹141.75 crores, up 17.6%. Results include ₹3.40 crores exceptional item related to new labour code provisions.
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Swaraj Engines Limited has delivered exceptional financial performance for the third quarter ended December 31, 2025, achieving record-breaking engine sales and robust profit growth. The company's Board of Directors approved these unaudited financial results during their meeting held on January 15, 2026, with the meeting commencing at 12:00 Noon and concluding at 1:05 PM.
Record Q3FY26 Performance
The company achieved its highest-ever Q3 engine sales volume of 47,563 units, demonstrating strong market demand and operational excellence. Revenue growth was driven by sustained engine demand across key market segments, with net operating revenue reaching ₹473.20 crores.
| Q3FY26 Performance: | Current Quarter | Previous Year | Growth (%) |
|---|---|---|---|
| Engine Sales Volume: | 47,563 units | 34,415 units | +38.20% |
| Net Operating Revenue: | ₹473.20 cr | ₹345.50 cr | +37.00% |
| Profit Before Tax (Before Exceptional): | ₹59.87 cr | ₹42.82 cr | +39.80% |
| Profit Before Tax (After Exceptional): | ₹56.47 cr | ₹42.82 cr | +31.90% |
| Profit After Tax: | ₹42.10 cr | ₹31.95 cr | +31.80% |
| Basic EPS: | ₹34.66 | ₹26.30 | +31.80% |
Nine-Month FY26 Highlights
Swaraj Engines recorded its highest-ever sales and profits for a nine-month period, reflecting consistent growth momentum throughout the financial year. The company sold 147,767 units compared to 123,226 units in the previous year.
| Nine-Month Performance: | FY26 | FY25 | Growth (%) |
|---|---|---|---|
| Engine Sales Volume: | 147,767 units | 123,226 units | +19.90% |
| Net Operating Revenue: | ₹1,461.34 cr | ₹1,227.73 cr | +19.00% |
| Profit Before Tax (Before Exceptional): | ₹193.79 cr | ₹161.83 cr | +19.70% |
| Profit Before Tax (After Exceptional): | ₹190.39 cr | ₹161.83 cr | +17.60% |
| Profit After Tax: | ₹141.75 cr | ₹120.56 cr | +17.60% |
| Basic EPS: | ₹116.69 | ₹99.25 | +17.60% |
Financial Structure and Exceptional Items
The company's financial results include an exceptional item of ₹3.40 crores related to incremental gratuity provisions following the Government of India's notification of new Labour Codes on November 21, 2025. These codes consolidate 29 existing labour laws into four comprehensive codes: the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020.
| Financial Breakdown: | Q3FY26 Amount | Details |
|---|---|---|
| Total Income: | ₹476.94 cr | Including other income of ₹3.74 cr |
| Total Expenses: | ₹417.07 cr | Operational and other expenses |
| Tax Expense: | ₹14.37 cr | Current and deferred tax combined |
| Exceptional Items: | ₹3.40 cr | New labour code provisions |
Regulatory Compliance and Corporate Governance
The financial results were reviewed by the Audit Committee and approved by the Board of Directors on January 15, 2026. B. K. Khare & Co., the company's statutory auditors, conducted a limited review of the unaudited financial results in accordance with Standard on Review Engagements (SRE) 2410. The company operates primarily in diesel engine manufacturing, constituting a single business segment with operations exclusively in India. Swaraj Engines Limited, established in 1985 in Mohali, Punjab, primarily supplies engines to the Swaraj Division of Mahindra & Mahindra Ltd.
Historical Stock Returns for Swaraj Engines
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.47% | +0.52% | -6.50% | -13.22% | +5.95% | +168.69% |
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