Tax credit masks operating loss in Swan Corp's Q2
Revenue rose +3.17% QoQ, but expenses grew +3.23%; other income was 1004.79% of pre-tax profit.
Filed 04 Nov 2026, 16:28 IST · after market close · Swan Corp Ltd (SWANCORP)
Key takeaways
- Consolidated operating margin slipped to -0.43% as expenses grew +3.23% QoQ, faster than revenue at +3.17%.
- A Rs 558.03 cr tax credit converted Rs 7.52 cr of pre-tax profit into Rs 565.54 cr of net profit.
- Swan Corp's -0.43% operating margin was 13.70 percentage points below the 13.27% median of 111 reporting Commodities peers.
Price around the results
Revenue grew, but the operating loss widened
Swan Corp reported consolidated Q2FY27 revenue growth of +3.17% QoQ, while expenses grew slightly faster at +3.23%. That cost gap pushed operating profit to a Rs 4.50 cr loss from a Rs 3.81 cr loss in Q1FY27, narrowing operating margin by 0.05 percentage points to -0.43%. Interest expense fell -9.08%, but that was not enough to offset the operating weakness.
Tax credit drove the reported profit
Other income of Rs 75.56 cr was 1004.79% of pre-tax profit of Rs 7.52 cr, making reported earnings heavily dependent on non-operating income. The reported tax credit of Rs 558.03 cr then lifted net profit to Rs 565.54 cr, despite the operating loss. The tax rate shifted by 7,420.67 percentage points from the previous quarter's -2.96%, so the net profit does not reflect operating performance alone.
Margin ranked near the bottom of reporting peers
Swan Corp's -0.43% operating margin was 13.70 percentage points below the 13.27% median among 111 Commodities peers that had reported the quarter, placing it seventh from the bottom. With only Q1FY27 available for the quarter-to-quarter trend, the margin direction was negative rather than an established multi-quarter decline. The results were filed after market close on 04 Nov 2026, so there is no reported market reaction yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,046 cr | ₹1,014 cr | +3.17% |
| Other income | ₹76 cr | ₹34 cr | +123.02% |
| Expenses | ₹1,050 cr | ₹1,018 cr | +3.23% |
| Operating profit | ₹-5 cr | ₹-4 cr | -18.11% |
| Operating margin (%) | -0.43% | -0.38% | — |
| Interest | ₹31 cr | ₹34 cr | -9.08% |
| Depreciation | ₹32 cr | ₹31 cr | +5.40% |
| Profit before tax | ₹8 cr | ₹-35 cr | — |
| Tax | ₹-558 cr | ₹1 cr | — |
| Net profit | ₹566 cr | ₹-36 cr | — |
| EPS (₹) | ₹18.04 | ₹-1.15 | — |
Operating margin of -0.43% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -0.43% after expenses grew +3.23% versus revenue growth of +3.17% QoQ.
- Whether other income remains a material contributor after accounting for 1004.79% of Q2FY27 pre-tax profit.
- Whether the reported tax credit of Rs 558.03 cr recurs in the next quarter.