Tax credit turned Swan Defence's operating loss into Rs 566.44 cr profit
Revenue more than doubled QoQ and the operating margin improved, but reported profit was driven by a large tax credit and other income.
Filed 12 Oct 2026, 18:00 IST · after market close · Swan Defence and Heavy Industries Ltd (SWANDEF)
Key takeaways
- Swan Defence reported consolidated net profit of Rs 566.44 cr despite an operating loss of Rs 17.02 cr.
- Revenue rose +124.93% QoQ to Rs 68.85 cr, lifting operating margin by 43.68 percentage points to -24.72%.
- A Rs 563.15 cr tax credit and other income equal to 1707.29% of pre-tax profit drove the reported earnings.
Price around the results
Revenue improved, but operations remained loss-making
Consolidated revenue rose +124.93% QoQ, while expenses increased +66.58%, allowing the operating loss to narrow from Rs 20.94 cr to Rs 17.02 cr. Operating margin improved by 43.68 percentage points from -68.40% to -24.72%, but remained negative.
Reported profit was dominated by non-operating items
Other income rose +414.38% QoQ to Rs 56.17 cr and represented 1707.29% of pre-tax profit, more than offsetting the operating loss. Interest expense also increased +17.23% to Rs 19.32 cr, while the Rs 563.15 cr tax credit produced a tax rate of -17138.43% and lifted net profit to Rs 566.44 cr.
Q2FY27 marked a sharp sequential improvement from Q1
Pre-tax profit moved from a loss of Rs 41.68 cr in Q1FY27 to Rs 3.29 cr in Q2FY27, while EPS changed from negative Rs 7.91 to Rs 107.52. The available quarterly direction is therefore positive on revenue and operating margin, but the earnings improvement came mainly below the operating line.
Results were filed after market close
The consolidated results were filed at 18:00 IST on 12 October 2026, after market close. No post-result stock reaction is included yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹69 cr | ₹31 cr | +124.93% |
| Other income | ₹56 cr | ₹11 cr | +414.38% |
| Expenses | ₹86 cr | ₹52 cr | +66.58% |
| Operating profit | ₹-17 cr | ₹-21 cr | +18.72% |
| Operating margin (%) | -24.72% | -68.40% | — |
| Interest | ₹19 cr | ₹16 cr | +17.23% |
| Depreciation | ₹17 cr | ₹15 cr | +8.96% |
| Profit before tax | ₹3 cr | ₹-42 cr | — |
| Tax | ₹-563 cr | ₹0 cr | — |
| Net profit | ₹566 cr | ₹-42 cr | — |
| EPS (₹) | ₹107.52 | ₹-7.91 | — |
What to watch
- Whether operating margin improves from -24.72%.
- Whether revenue remains above Rs 68.85 cr without a similar reliance on Rs 56.17 cr of other income.
- Whether interest expense stays below or above Rs 19.32 cr.