Swan Defence and Heavy Industries Limited (SWANDEF)
₹2,944.70 -0.00% last close, 16 Oct
Q2 FY27 results
Swan Defence and Heavy Industries Limited reported Q2 FY27 results on 15 Oct 2026: revenue ₹68.8 Cr (+72.1% year on year, +124.9% on the previous quarter), and net profit ₹566 Cr (against a loss a year earlier); the operating margin was -24.7%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹68.8 | +72.1% | +124.9% |
| Operating profit | ₹-17.0 | loss widened | loss narrowed |
| Net profit | ₹566 | from loss | from loss |
| EPS (₹) | 107.52 | from loss | from loss |
| Operating margin | -24.7% | — | — |
- Turnaround: profit against a loss a year ago
- Operating margin contracted 472 bps YoY
- All of pre-tax profit came from other income or one-off items
- Borrowings down 57% since Mar 2026
Quality of profit: none of the pre-tax profit of ₹3.3 Cr came from the core business; all of it came from other income and one-off items.
Share price since the results: +0.5% (close before the filing to the latest close).
SWANDEF exchange data
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📢 Recent Corporate Announcements
Swan Defence and Heavy Industries released its H1FY27 corporate presentation detailing a firm order book of ~₹6,500 Cr (including government subsidies), providing significant revenue visibility against TTM revenue of ₹312 Cr. Key orders include 6 chemical tankers for Rederiet Stenersen valued at $227 Mn (~₹2,160 Cr) and 4 dual-fuel ammonia carriers for Energy ONE. The company projects revenue conversion of the current order book at 6% in FY27, 23% in FY28, reaching 100% by FY31 under Ind AS 115 input method accounting. Additionally, the presentation indicates restated financials reflecting the TOPL merger and completion of obligations under the resolution plan.
- Firm order book stands at ~₹6,500 Cr, representing over 20x TTM revenue of ₹312 Cr
- Commercial export contract with Rederiet Stenersen AS valued at $227 Mn (~₹2,160 Cr) for 6 chemical tankers with delivery starting FY29
- Revenue completion from the order book is scheduled at 6% in FY27, 23% in FY28, 65% in FY29, 93% in FY30, and 100% in FY31
- Completed 7 ship repair and refits with ~30 days average dry docking time per vessel alongside ongoing fabrication for L&T (5 barge unloaders at 2,500 tph each)
Swan Defence and Heavy Industries presented its H1 FY27 results, posting Q2 FY27 revenue from operations of ₹68.85 Cr (up 74% YoY from ₹39.57 Cr) and a net profit (PAT) of ₹566.44 Cr (up from a loss of ₹0.55 Cr YoY, post restatement for the TOPL merger). The firm reported early CIRP closure by settling Committee of Creditors obligations and secured a ₹1,150 Cr term loan from NaBFID with central interest subvention reducing coupon to 5.85%. Its total firm order book stands at ~₹6,500 Cr (approx. 20.8x TTM revenue of ₹312 Cr), including contracts with Energy ONE, Svitzer, Rederiet Stenersen, and Royal Navy of Oman.
- Q2 FY27 consolidated revenue from operations rose to ₹68.85 Cr with PAT reaching ₹566.44 Cr (post TOPL merger restatement)
- Firm order book reached ~₹6,500 Cr, which is ~20.8x TTM revenue (₹312 Cr)
- Prepaid Committee of Creditors obligations, marking formal completion and early exit of CIRP resolution plan
- Secured ₹1,150 Cr NaBFID term loan with a 3% subvention, lowering the effective coupon rate to 5.85%
- In-principle approval received under Shipbuilding Development Scheme for 25% capital assistance on brownfield expansion
Swan Defence and Heavy Industries reported a 2.5x rise in H1 FY27 revenue from operations to ₹99.46 Cr compared to ₹39.99 Cr in H1 FY26, alongside a reported PAT of ₹524.78 Cr (aided by the restated Triumph Offshore merger). The company's firm order book reached ~₹6,500 Cr as of September 30, 2026, representing nearly 21x its TTM revenue of ₹312 Cr and offering visibility through FY31. Key recent order wins include 4 ammonia dual-fuel bulk carriers from Energy ONE and 4 harbour tugs from Svitzer, alongside completed CIRP resolution commitments.
- H1 FY27 revenue from operations grew 148.7% YoY to ₹99.46 Cr from ₹39.99 Cr in H1 FY26
- Firm order book reached ~₹6,500 Cr, which is ~2,083% of TTM revenue (₹312 Cr)
- Reported PAT turned positive to ₹524.78 Cr for H1 FY27, restated for TOPL merger
- Secured orders for four 92,500 DWT ammonia dual-fuel bulk carriers and four TRAnsverse 3200 tugs
- Received in-principle brownfield expansion approval under the Shipbuilding Development Scheme including a 600-tonne Goliath crane
Swan Defence and Heavy Industries reported standalone revenue from operations of ₹68.85 Cr for Q2 FY27 (quarter ended September 30, 2026), up 125% QoQ compared to ₹30.61 Cr in Q1 FY27. Standalone Profit After Tax surged to ₹567.10 Cr, primarily driven by a one-off excess tax provision write-back of ₹563.15 Cr following the amalgamation of Triumph Offshore Private Limited (TOPL). Profit before tax and exceptional items stood at ₹3.95 Cr compared to a loss of ₹41.58 Cr in the preceding quarter. Additionally, the company approved the allotment of 159.50 Cr preference shares of ₹10 each pursuant to the NCLT-approved scheme.
- Revenue from operations grew 125% QoQ to ₹68.85 Cr in Q2 FY27 from ₹30.61 Cr in Q1 FY27.
- Reported PAT of ₹567.10 Cr, heavily influenced by an exceptional write-back of tax provisions worth ₹563.15 Cr.
- Profit before tax turned positive to ₹3.95 Cr versus a pre-tax loss of ₹41.58 Cr in Q1 FY27.
- Amalgamation of Triumph Offshore Private Limited became effective September 17, 2026, leading to ₹292.67 Cr surplus credited to retained earnings.
- Approved allotment of 159,49,68,750 Preference Shares of ₹10 each to the shareholders of TOPL.
Swan Defence and Heavy Industries Limited has appointed Mr. Venu Avadhanula as Chief Operating Officer (Senior Management Personnel) effective October 1, 2026. Mr. Avadhanula brings over 34 years of maritime and shipyard operations experience, having previously worked with Drydocks World, Dubai. This appointment comes as the company attempts an operational turnaround following its IBC acquisition, currently carrying TTM net losses of Rs -237 Cr on TTM revenue of Rs 312 Cr. Key operational execution will be critical to ramping up production at its Pipavav shipyard.
- Appointment of Mr. Venu Avadhanula as Chief Operating Officer effective October 1, 2026
- Candidate possesses over 34 years of leadership experience in shipyard operations, production, and infrastructure
- Previous operational leadership experience includes Drydocks World, Dubai
- Takes operational helm at a turnaround business with TTM revenue of Rs 312 Cr and high leverage (D/E of 42.89)
Swan Defence and Heavy Industries Limited has announced that its Scheme of Amalgamation with Triumph Offshore Private Limited has become effective on September 17, 2026. This follows the filing of the certified NCLT Ahmedabad bench order with the Registrar of Companies on the same day. The Appointed Date for the merger is fixed as April 1, 2024. The amalgamation formally consolidates Triumph Offshore into Swan Defence, which has TTM revenues of ₹312 Cr and a market cap of ₹14,330 Cr.
- Scheme of Amalgamation became effective on September 17, 2026
- Appointed Date for the merger is set as April 1, 2024
- Certified copy of NCLT Ahmedabad order filed with the Registrar of Companies on September 17, 2026
- Transferee company Swan Defence has TTM revenues of ₹312 Cr and total debt of ₹2,788 Cr
Swan Defence and Heavy Industries Limited has notified exchanges that its management will participate in an in-person meeting and conference with a group of institutional investors. The interactions are scheduled to take place from September 21, 2026, to September 30, 2026. The company confirmed that no unpublished price-sensitive information (UPSI) will be shared. This represents a routine procedural disclosure under Regulation 30 of SEBI LODR.
- Management participating in in-person investor meetings/conferences from 21st September, 2026 to 30th September, 2026
- Company clarified no unpublished price-sensitive information (UPSI) will be disclosed
- Filing submitted under Regulation 30 of SEBI (LODR) Regulations, 2015
Swan Defence and Heavy Industries Limited has scheduled an in-person meeting/conference with a group of institutional investors in Mumbai. The meetings will take place over two days, on Thursday, September 17, 2026, and Friday, September 18, 2026. The company stated that no unpublished price-sensitive information (UPSI) will be shared during these discussions.
- Institutional investor meetings scheduled for September 17, 2026, and September 18, 2026
- Meeting format is an in-person conference located in Mumbai
- Company confirmed no unpublished price-sensitive information (UPSI) will be disclosed
Swan Defence and Heavy Industries Limited has concluded its 29th Annual General Meeting (AGM) held on September 02, 2026. All eight resolutions were passed with requisite majorities, including enabling approvals for fund raising via QIP, preferential issue, or debt instruments. Shareholders also approved material related-party transactions and enhanced limits for inter-corporate loans, guarantees, and securities under Sections 185 and 186 of the Companies Act.
- All 8 resolutions passed by shareholders at the 29th AGM on September 02, 2026
- Fund raising enabling resolution (QIP/debt/preferential issue) passed with 99.9999% votes in favor
- Material related-party transactions approved with 77.38% valid votes cast in favor
- Total shareholder base stood at 83,786 as on the record date of August 26, 2026
Swan Defence and Heavy Industries Limited received the certified true copy of the NCLT Ahmedabad Bench order on August 25, 2026, approving its Scheme of Arrangement and Amalgamation with Triumph Offshore Private Limited. The scheme includes the merger of Triumph Offshore into Swan Defence along with capital reduction and reorganization, with an Appointed Date of April 1, 2024. The scheme will become formally effective upon filing Form INC-28 with the Registrar of Companies (RoC) within 30 days. Eligible shareholders of Triumph Offshore will be allotted fully paid preference shares of face value Rs 10 each in Swan Defence as part of the consideration.
- NCLT Ahmedabad Bench sanctioned the Scheme of Amalgamation between Triumph Offshore and Swan Defence on August 6, 2026.
- Certified true copy of the order was received by the company on August 25, 2026.
- Appointed Date for the merger and capital reorganization is set as April 1, 2024.
- Company must file Form INC-28 with the Registrar of Companies within 30 days to make the scheme effective.
- Scheme involves issuance of preference shares (face value Rs 10) of Swan Defence to shareholders of Triumph Offshore.
Swan Defence and Heavy Industries (formerly Reliance Naval) reported a consolidated revenue of ₹30.61 Cr for Q1 FY27, a sharp decline from ₹236.28 Cr in Q4 FY26 but significantly higher than the ₹0.42 Cr in Q1 FY25. The company remains in the red with a net loss of ₹41.68 Cr, though this is a sequential improvement from the ₹142.15 Cr loss in the previous quarter. A major structural update is the NCLT approval for the amalgamation of Triumph Offshore Private Limited, with the financial impact expected in the September 2026 quarter. The company continues to struggle with high finance costs of ₹16.48 Cr against a small revenue base.
- Consolidated revenue for Q1 FY27 stood at ₹30.61 Cr, representing ~10.8% of TTM revenue.
- Net loss narrowed to ₹41.68 Cr compared to a loss of ₹142.15 Cr in the preceding quarter.
- Finance costs rose to ₹16.48 Cr in Q1 FY27 from ₹4.78 Cr in Q4 FY26.
- NCLT Ahmedabad has approved the amalgamation with Triumph Offshore Private Limited (TOPL).
- Merger terms involve issuing 1325 8% Non-Convertible Redeemable Preference Shares for every 1000 equity shares of TOPL.
Swan Defence and Heavy Industries (formerly Reliance Naval) has issued a notice for its 29th AGM on September 02, 2026, seeking shareholder approval for a massive fundraise of up to ₹4,000 Crore. This proposed amount represents approximately 29% of the company's current market capitalization (₹13,825 Cr) and is over 14 times its TTM revenue of ₹282 Cr. The capital is intended to be raised via QIP, debt, or preferential issues to support the revival of its Pipavav shipyard operations. Given the company's high debt of ₹2,788 Cr and negative net worth relative to its scale, this infusion is critical for operational stability.
- Proposed fundraise of up to ₹4,000 Crore through Equity, QIP, Debt, or ADR/GDRs
- Fundraise amount is ~29% of current market cap and ~61.5x the current net worth of ₹65 Cr
- AGM scheduled for September 02, 2026, to pass the special resolution for capital issuance
- Company reported a TTM net loss of ₹226 Crore and carries a heavy debt burden of ₹2,788 Crore
- Re-appointment of Directors Vivek Merchant and Bhavik Merchant proposed as part of ordinary business
The NCLT Ahmedabad Bench has sanctioned the Scheme of Arrangement and Amalgamation between Triumph Offshore Private Limited (TOPL) and Swan Defence and Heavy Industries Limited (SWANDEF). The merger, effective from the appointed date of April 1, 2024, includes a share exchange ratio of 1,325 preference shares of SWANDEF for every 1,000 equity shares of TOPL. Crucially, the scheme allows SWANDEF to set off its accumulated losses (debit balance in Retained Earnings) against its Capital Reserve and Securities Premium. This restructuring aims to clean up the balance sheet post-insolvency and potentially enable future dividend payments.
- Share exchange ratio fixed at 1,325 preference shares of SWANDEF for every 1,000 equity shares of TOPL
- Appointed date for the amalgamation and capital reorganization is April 1, 2024
- Capital reorganization involves setting off the debit balance in Retained Earnings against Capital Reserve and Securities Premium
- The company currently carries a high debt of Rs 2,788 Cr against a net worth of only Rs 65 Cr
- The merger follows the company's acquisition by the Swan Group via a corporate insolvency process in January 2024
Swan Defence and Heavy Industries (SDHI) has secured a contract from Denmark-based Svitzer A/S to construct four high-specification TRAnsverse 3200 tugs at its Pipavav yard. This marks the company's fourth consecutive export contract since its acquisition by Swan Group in early 2024, validating its turnaround strategy. The vessels, featuring 80-tonne bollard pull and 15% better fuel efficiency, are scheduled for delivery starting early 2028. While the order value was not disclosed, it is significant for a company with a TTM revenue of only Rs 282 Cr and a high debt of Rs 2,788 Cr.
- Secured contract for 4 advanced TRAnsverse 3200 tugs from global operator Svitzer.
- Vessels feature 80-tonne bollard pull and are up to 15% more fuel-efficient than conventional designs.
- Deliveries are scheduled to commence in early 2028 from the Pipavav shipyard.
- This is the 4th consecutive export contract win for the company under new management.
- SDHI operates India's largest dry dock (662m x 65m) with 164,000 tons per annum fabrication capacity.
ICRA Limited has assigned a first-time investment-grade rating of [ICRA]BBB (Stable) to Swan Defence and Heavy Industries Limited's credit facilities totaling Rs 2,650 Cr. This includes a specific Rs 1,150 Cr term loan from the National Bank for Financing Infrastructure and Development (NaBFID) and Rs 1,500 Cr in unallocated limits. The rating is a significant milestone for the company, which was acquired via insolvency in early 2024, as it seeks to ramp up shipbuilding operations. However, the rated debt amount is approximately 9.4x the company's TTM revenue of Rs 282 Cr, reflecting high leverage during this turnaround phase.
- Total credit facilities of Rs 2,650 Cr assigned a new rating by ICRA.
- Long-term fund-based term loan of Rs 1,150 Cr rated [ICRA]BBB (Stable).
- Unallocated limits of Rs 1,500 Cr assigned [ICRA]BBB (Stable) / [ICRA]A3+.
- Rated debt represents approximately 21.6% of the company's current market capitalization of Rs 12,240 Cr.
- The term loan is specifically tied to the National Bank for Financing Infrastructure and Development (NaBFID).
Financial Performance
Revenue Growth by Segment
Operational revenue showed a significant increase as reflected in the Debtors Turnover ratio rising to 30.79 in FY25 from zero in FY24. Specific segment-wise INR values were not disclosed in the available documents.
Geographic Revenue Split
Not disclosed in available documents, though the company operates from Pipavav Port, Gujarat, and recently signed an LoI with a Norwegian firm, Rederiet Stenersen AS, indicating future export revenue potential.
Profitability Margins
Operating Profit Margin stood at -7.22% and Net Profit Margin at -25.80% for FY25. These negative margins are attributed to increased operating losses during the transition under new management.
EBITDA Margin
Not explicitly stated as EBITDA, but Operating Profit Margin is -7.22%. The Interest Coverage Ratio worsened by 365%, moving from -1.00 to -4.65, indicating increased financial stress due to higher losses.
Capital Expenditure
The company is raising up to INR 1,000 Cr through Unsecured Non-Convertible Debentures (NCDs) to fund operations and potential growth. Historical CAPEX values in INR Cr were not disclosed.
Credit Rating & Borrowing
The Board approved raising INR 1,000 Cr via private placement of NCDs. Current Debt-Equity ratio increased by 85.94% YoY to 8.33 as of March 31, 2025, due to accumulated operating losses.
Operational Drivers
Raw Materials
Steel and marine equipment are the primary raw materials. Fluctuations in these costs are cited as a major risk to project margins, especially for fixed-price contracts.
Import Sources
Not disclosed in available documents, though the company notes global material cost fluctuations as a risk factor.
Capacity Expansion
The company operates a large-scale facility at Pipavav Port. While specific MTPA is not listed, it is expanding its mid-management by hiring 85+ roles to execute complex projects like chemical tankers.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company noted a 150% variance in inventory turnover due to an increase in Cost of Goods Sold (COGS) in FY25.
Manufacturing Efficiency
Inventory Turnover ratio is 0.0005, a 150% variance from the previous year, reflecting the early stages of ramping up operations and higher COGS.
Strategic Growth
Growth Strategy
Growth is targeted through the execution of new shipbuilding contracts, such as the LoI for chemical/product tankers (16,000-19,000 DWT). The strategy includes formalizing 100+ SOPs, hiring 85+ mid-management experts, and leveraging government policies like SBFAP 2.0 and Sagarmala.
Products & Services
Shipbuilding and heavy fabrication services, specifically bulkers, passenger vessels, and chemical/product tankers (16,000 to 19,000 DWT).
Brand Portfolio
Swan Defence and Heavy Industries Limited (formerly Reliance Naval and Engineering Limited).
New Products/Services
Entry into the chemical/product tanker market (16,000-19,000 DWT) via a new partnership with Rederiet Stenersen AS.
Market Expansion
Targeting the North European market through the partnership with Rederiet Stenersen AS for chemical tankers.
Strategic Alliances
Signed a Letter of Intent (LoI) with Rederiet Stenersen AS (Norway) for the construction of chemical/product tankers.
External Factors
Industry Trends
The Indian shipbuilding industry is shifting toward green technologies and ESG compliance. Government initiatives like 'Maritime Amrit Kaal Vision 2047' are expected to drive long-term demand for commercial and defense vessels.
Competitive Landscape
Competes in the domestic and export shipbuilding market; specific competitor names were not listed.
Competitive Moat
The company possesses a large-scale strategic facility at Pipavav Port and has retained key technical personnel from the erstwhile shipyard, providing a competitive edge in heavy fabrication and complex vessel construction.
Macro Economic Sensitivity
Highly sensitive to government defense spending and maritime policies like the Shipbuilding Financial Assistance Policy (SBFAP 2.0).
Consumer Behavior
Shift toward higher environmental compliance and vessel quality in the European market is driving demand for specialized chemical tankers.
Geopolitical Risks
Geopolitical tensions are cited as a factor that may pose operational challenges and impact material costs.
Regulatory & Governance
Industry Regulations
Operations are governed by the Shipbuilding Financial Assistance Policy (SBFAP 2.0) and increasingly stringent environmental and safety norms for coastal operations.
Environmental Compliance
Increasingly stringent ESG and safety norms may require additional investment in green technologies and waste handling infrastructure.
Legal Contingencies
The company is undergoing a transition following its acquisition from insolvency; specific pending court case values were not disclosed in the provided documents.
Risk Analysis
Key Uncertainties
Natural disasters (cyclones/flooding) at coastal yards could disrupt project schedules. Delays in government defense contracts pose a risk to revenue visibility.
Geographic Concentration Risk
Operations are concentrated at Pipavav Port, Amreli, Gujarat, making the company vulnerable to regional weather disruptions.
Third Party Dependencies
Dependency on government and defense orders for yard utilization.
Technology Obsolescence Risk
The company is mitigating tech risks by initiating skill development programs in specialized shipbuilding disciplines like profiling and specialized welding.
Credit & Counterparty Risk
Current ratio improved to 5.05 following payments to financial creditors, indicating improved short-term liquidity management.
