Swojas Foods Reports Mixed Q3FY26 Results with Revenue Decline and Profit Drop
Swojas Foods Limited reported Q3FY26 results showing revenue decline of 7.9% to Rs 3323.64 lacs and net profit drop of 82.2% to Rs 35.84 lacs. However, nine-month revenue surged 127.5% to Rs 9991.29 lacs, demonstrating strong overall business growth despite quarterly challenges.
*this image is generated using AI for illustrative purposes only.
Swojas Foods Limited announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly revenue decline but strong nine-month growth. The Board of Directors approved these results in their meeting held on February 10, 2026.
Quarterly Financial Performance
The company's Q3FY26 performance reflected challenging market conditions with revenue contraction and reduced profitability compared to the previous year.
| Metric: | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | Rs 3323.64 lacs | Rs 3607.39 lacs | -7.9% |
| Total Income: | Rs 3323.63 lacs | Rs 3611.88 lacs | -8.0% |
| Net Profit: | Rs 35.84 lacs | Rs 201.19 lacs | -82.2% |
| Basic EPS: | Rs 0.12 | Rs 0.65 | -81.5% |
The significant decline in net profit was primarily attributed to higher operational expenses and increased tax burden, including prior period tax expenses of Rs 13.99 lacs during the quarter.
Nine-Month Performance Shows Strong Growth
Despite quarterly challenges, the company demonstrated robust performance over the nine-month period, indicating strong business momentum in the earlier quarters of FY26.
| Parameter: | 9M FY26 | 9M FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | Rs 9991.29 lacs | Rs 4390.28 lacs | +127.5% |
| Net Profit: | Rs 94.43 lacs | Rs 232.10 lacs | -59.3% |
| Basic EPS: | Rs 0.30 | Rs 0.75 | -60.0% |
The substantial revenue growth of 127.5% in the nine-month period highlights the company's expansion capabilities, though profit margins remained under pressure.
Expense Analysis and Operational Metrics
The company's expense structure revealed key operational trends during Q3FY26. Total expenses amounted to Rs 3257.04 lacs compared to Rs 3328.85 lacs in Q3FY25. Notable expense components included:
- Purchases of Stock-in-trade: Rs 4263.40 lacs (vs Rs 3257.13 lacs in Q3FY25)
- Changes in inventories: Favorable impact of Rs 1083.56 lacs
- Other Expenses: Increased to Rs 72.02 lacs from Rs 8.76 lacs
- Employee benefits: Rs 5.11 lacs (vs Rs 2.35 lacs)
Warrant Conversion and Fund Utilization
Swojas Foods provided updates on its convertible equity share warrants program. The company received In Principal Approval from BSE for issuing 4,84,84,500 warrants convertible into equity shares of Rs 10 each. As of January 21, 2026, the company converted 2,100,000 shares into equity instruments.
The fund utilization certificate revealed that Rs 1071.86 lacs was received from warrant proceeds till December 31, 2025, with Rs 1025.94 lacs utilized primarily for working capital requirements, leaving Rs 45.92 lacs unutilized.
Corporate Governance and Compliance
The financial results were reviewed by the Audit Committee and approved by the Board of Directors. The statutory auditors VSSB & Associates conducted a limited review of the results as per SEBI regulations. The company maintains its paid-up equity share capital at Rs 3096.27 lacs with a face value of Rs 10 per share, unchanged from previous periods.
Historical Stock Returns for Swojas Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.89% | -6.44% | +17.27% | +21.60% | -4.59% | +142.11% |
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