Mahindra & Mahindra's subsidiary Swaraj Engines Ltd. delivered exceptional June quarter results, achieving its highest ever sales and profit for any quarter. According to reports from CNBC TV18 and Business Standard, the company reported net profit of ₹56 crore, representing an 11.13% year-on-year growth from ₹49.97 crore in the corresponding quarter last year. Revenue for the quarter stood at ₹588 crore, marking a 21.54% increase compared to ₹484.10 crore reported in the June quarter of the previous year. As per the company's exchange filing, the robust performance reflects healthy business momentum during the quarter. The profit before tax (PBT) for the quarter stood at ₹74.64 crore, up from ₹67.17 crore reported in the corresponding quarter of the previous year. The company's Operating Profit Margin (OPM) for the quarter was 13.05%, slightly lower than 13.86% in the previous year, reflecting the company's focus on volume expansion over margin optimization. The profit after tax growth of 11% exceeded the company's FY27 guidance range of 15-20%, demonstrating strong operational performance.
The company's operational performance showed strong momentum with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increasing by 16% year-on-year basis to ₹77 crore from ₹67 crore in the previous year. As reported by CNBC TV18, EBITDA margin for the quarter narrowed marginally to 13.11% YoY from 13.74% last year. This margin compression despite absolute EBITDA growth reflects the company's focus on volume expansion over margin optimization, with the company noting in its filing that it posted yet another strong quarterly financial performance in the backdrop of robust engine demand. The company's Operating Profit (EBITDA) for the quarter grew by 14.4% to ₹76.76 crore, demonstrating continued operational strength across all business segments. The Operating Profit (EBITDA) of ₹76.76 crore also exceeded the company's FY27 guidance, indicating strong operational efficiency and execution capabilities.
Engine sales demonstrated robust growth with 56,803 units sold during the quarter, compared to 49,040 units in the same quarter last year, according to the company's exchange filing. This represents a 15.8% increase in engine sales volume, contributing significantly to the overall revenue growth and supporting the company's market position in the engine manufacturing sector. The company highlighted that it recorded its highest-ever engine sales and profit for any quarter, with the strong performance driven by robust engine demand in the market. The company's cumulative sales volume has also crossed the 2 million mark since inception, marking a significant milestone in its operational history. Basic earnings per share (EPS) for the first quarter of fiscal year 2027 was ₹45.70, compared to ₹41.14 in the same period last year, reflecting the company's improved profitability per share.
Following the results announcement on Monday, July 20, Swaraj Engines shares gained up to 3% before touching an intraday high of ₹3,830 on the National Stock Exchange. However, as reported by NDTV Profit, the stock was trading at ₹3,675 around 11:50 AM on Monday, losing over 33 points from its previous close at ₹3,709. Despite the strong quarterly performance, the stock has fallen 13% over a year's time and is down 4% in the past month, even as the benchmark Nifty 50 gained 0.8% during the same period. The company has a total market capitalisation of ₹4,475 crore according to NSE data. The stock had hit a 52-week high of ₹4,625 on July 17, 2025, and a 52-week low of ₹3,301.30 on March 30, 2025. The strong quarterly performance has exceeded market expectations, with the stock showing positive momentum in recent trading sessions.
According to the BSE Shareholding pattern as of the March quarter, promoters Mahindra & Mahindra held a 52.11% stake in Swaraj Engines. Among public shareholders, DSP Smallcap Fund and Parag Parikh Conservative Hybrid Fund lead the 8.02% stake that Mutual Funds hold in the company. Close to 36,000 retail investors or those with authorized share capital of up to ₹2 lakh had a 22.43% stake in the company at the end of the March quarter, indicating strong retail participation in the engine manufacturer. Swaraj Engines Limited was set up in 1985 in Mohali, Punjab, and is primarily engaged in the business of supplying engines to the Swaraj Division of Mahindra & Mahindra Ltd.
