Swan Defence and Heavy Industries Ltd reported a net profit of ₹566.44 crore for the first quarter of the current fiscal year. This stands in stark contrast to the ₹0.55 crore net loss posted in the same period last year. The primary driver is the write-back of excess provisions made in earlier years, a non-operating item that significantly inflated the bottom line.
Top-line growth looked solid on the surface. Revenue from operations surged 74% year-on-year to ₹69 crore, up from ₹40 crore. Sequentially, the increase was even sharper, jumping 125% from the previous quarter. However, the operating reality tells a different story. The company reported an EBITDA loss of ₹17.02 crore, which widened from a loss of ₹7.97 crore in the corresponding quarter last year.
Margins remained deeply negative. The EBITDA margin stood at -24.72%, deteriorating from -20.15% a year ago. On a quarter-on-quarter basis, the EBITDA loss did narrow slightly from ₹21 crore, with the margin improving from a staggering -69%. This suggests that while the core business is still burning cash, the pace of losses is slowing marginally compared to the immediate prior period.
The market reacted positively to the headline numbers. Shares of the Gujarat-based firm ended trading at ₹2,874.55 on the BSE, up ₹136.85 or 5.00% for the day. Traders appear to have focused on the return to profitability, even if it stems from accounting adjustments rather than operational efficiency. The recent export order from Denmark's Svitzer to build four advanced tugs adds a layer of forward-looking optimism to an otherwise mixed financial snapshot.