Swaraj Engines delivered strong financial performance in the third quarter of FY26, reporting robust growth across all key financial metrics. The company announced its results on January 15, showcasing significant improvements in profitability, revenue growth, and operational efficiency.

Comprehensive Financial Performance

The company's Q3 FY26 results demonstrate substantial year-on-year improvements across all major financial parameters:

Strong Profitability Growth

Swaraj Engines reported impressive profit growth with net earnings reaching ₹42.10 crores in Q3 FY26, marking a substantial increase of 32% compared to ₹31.90 crores in the corresponding quarter of the previous year. This strong profitability performance reflects the company's effective operational management and improved business fundamentals in the capital goods sector.

EBITDA Performance Excellence

The company achieved exceptional EBITDA performance with earnings reaching ₹61.95 crores in the third quarter, representing a remarkable surge of 40.2% compared to ₹44.20 crores in the year-ago period. EBITDA margin also showed healthy expansion, improving to 13.10% from 12.80% year-on-year, indicating enhanced operational efficiency and better cost optimization strategies.

Revenue Growth Momentum

Swaraj Engines demonstrated strong top-line performance with revenue jumping 37% year-on-year to ₹473.20 crores in Q3 FY26, compared to ₹345.50 crores recorded in the same quarter last year. This significant revenue growth underscores the company's market position and demand strength in its operational segments.

Market Performance

Shares of Swaraj Engines settled 0.37% higher at ₹3,615 on Wednesday, reflecting investor confidence in the company's financial performance and growth trajectory in the capital goods sector.

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.

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.

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.

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.