Record Q1 Growth
Swaraj Engines Reports Record Q1 Profit, Revenue as Engine Sales Cross 2 Million Units
Anonymous
Key Points
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Diluted earnings per share from continuing operations stood at ₹45.70, the same as the basic EPS of ₹45.70.
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Total income for the quarter was ₹592.10 crore, higher than the ₹588.39 crore revenue from operations, indicating other income components.
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Profit before tax for the quarter rose to ₹74.64 crore from ₹67.17 crore in the same period last year.
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Promoter stake: Mahindra & Mahindra holds a 52.11% stake in Swaraj Engines.
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Market reaction to the results was mixed: some outlets reported muted stock movement, while others noted a gain of about 3% after the announcement.
Swaraj Engines posted its highest-ever quarterly profit and engine sales in Q1 FY27, the three months ended June 30, 2026. Net profit climbed 11% year over year to ₹55.5 crore, while revenue jumped 21.5% to ₹588.4 crore, according to NDTV Profit.
The company also crossed a major milestone: cumulative engine sales have now surpassed 2 million units since the company's founding, Upstox reported. Shares rose as much as 3% on the news, hitting a day high of ₹3,830.
Record Engine Sales Drive Revenue to New Heights
Swaraj Engines sold 56,803 engines in the quarter — a quarterly record — up 15.8% from the same period last year. That surge in volume was the main engine behind the 21.5% revenue jump, according to NDTV Profit. Strong farm equipment demand, particularly for tractors, drove buyers to Swaraj's products.
Total income for the quarter reached ₹592.10 crore, slightly above the ₹588.39 crore revenue from operations. The gap reflects small amounts of other income on top of core sales, Market Screener noted.
Profit Before Tax Climbs but Margins Stay Flat
Profit before tax rose to ₹74.64 crore, up from ₹67.17 crore a year ago. EBITDA — earnings before interest, taxes, depreciation, and amortization — grew 14.2% to ₹76.6 crore. That is a solid gain in raw profit, Upstox reported.
However, the EBITDA margin held steady at around 13%. That means higher costs ate up much of the extra revenue. The company grew its top line fast, but expenses rose nearly as quickly, keeping the profit margin flat.
EPS Holds Steady as 2 Million Cumulative Sales Milestone Hit
Basic and diluted earnings per share both came in at ₹45.70 for the quarter — unchanged from the prior year. Net profit rose 11%, but the per-share figure did not move because the share count remained the same.
Meanwhile, total engine sales since the company's founding crossed 2 million units — a landmark the company highlighted in its results. Upstox called it evidence of a "sustained growth trajectory" for the Mahindra-backed firm.
Mahindra Backing and Mixed Market Reaction After Results
Swaraj Engines is majority-owned by Mahindra & Mahindra, which holds a 52.11% promoter stake. That parent company link gives Swaraj access to a broad tractor distribution network across India.
Market reaction to the results was uneven. Equity Pandit reported shares climbed 3%, touching ₹3,830 intraday. Other outlets described movement as more muted. Overall, investors appeared cautiously positive about the record quarter but did not push the stock sharply higher.
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