Swaraj Engines delivered exceptional September quarter results, with revenue from operations growing 26% year-on-year to ₹635.19 crore compared to ₹504.04 crore in the same period last year. According to latest regulatory filings, the company's net profit increased 21.9% to ₹60.57 crore from ₹49.68 crore in the corresponding quarter of the previous year. The company achieved its highest-ever quarterly profit before tax (PBT) and profit after tax (PAT) during this period, demonstrating sustained operational excellence and continued growth momentum. Operating profit also registered healthy growth, rising 27.1% YoY to ₹86.45 crore from ₹68.03 crore in the corresponding quarter last year.
The company's EBITDA margins expanded to 13.6% from 13.5% during last year's September quarter, demonstrating improved operational efficiency. As reported by the latest regulatory filing, EBITDA for the quarter stood at ₹86.45 crore, representing a 27.1% increase from ₹68.03 crore reported during the year-ago period. This margin expansion, combined with strong top-line growth, contributed to the company's record-high quarterly performance and stable operating performance throughout the quarter, with the company maintaining its position as a key supplier to Mahindra & Mahindra's Swaraj Division.
Engine sales volumes during the September quarter reached 61,216 units, marking a 19.6% growth compared to 51,164 units sold in the year-ago quarter. According to the regulatory filing, the company continued to see steady demand and recorded half-yearly engine sales of 118,019 units in H1FY27, up 17.8% from 1,00,204 units in the corresponding period of the previous fiscal year. Shares surged nearly 15% following the results announcement, with the stock hitting an intraday high of ₹3,949.50 and trading 11% higher at ₹3,816 as of 2:25 PM, significantly outperforming the benchmark Nifty 50 index which was down 170 points at 22,350. However, the stock declined over 3% on Tuesday, 13 October, giving up some of the previous session's sharp gains despite the strong quarterly results.
For the half-year ended September 2026, net profit jumped 21% to ₹116 crore while revenue from operations increased to ₹1,224 crore, marking a growth of 24% YoY. As reported by the latest regulatory filing, the company continued to see steady demand and recorded half-yearly engine sales of 118,019 units compared to 1,00,204 units in the corresponding period of the previous year. The stock's strong performance reflects investor confidence in the company's ability to maintain its growth trajectory and operational improvements demonstrated across both quarterly and half-yearly periods, with the company's primary business model of supplying engines to Mahindra & Mahindra's Swaraj Division supporting sustained growth momentum.
Centrum Institutional Research has maintained a 'Buy' rating on Swaraj Engines with a target price of ₹4,500 against the current market price of ₹3,621.55, implying an upside potential of around 24%. According to Centrum, the company's Q2FY27 performance exceeded estimates, primarily driven by better-than-expected volume growth. The brokerage expects the Indian tractor industry to grow at a moderate CAGR of 4% over FY26–FY28 after the sharp 22% growth in FY26, with new product launches and steady availability of tractor financing expected to remain key growth drivers. Despite the company's strong relationship with Mahindra & Mahindra, Centrum remains cautious about industry risks including deficient rainfall and El Niño-related risks that could weigh on farm sentiment and tractor demand. The company maintains a debt-free balance sheet and generates healthy returns with ROE and ROCE of around 38%.
