Swelect profit drops 74.38% as interest cost jumps
Operating margin held up as costs fell slightly faster than revenue, but higher interest and tax charges sharply reduced earnings.
Filed 13 Nov 2026, 21:33 IST · after market close · Swelect Energy Systems Ltd (SWELECTES)
Key takeaways
- Consolidated net profit fell 74.38% QoQ to Rs 1.96 cr as interest expense rose 66.27%.
- Operating margin improved by 0.09 percentage points QoQ to 21.82% because expenses declined faster than revenue.
- Other income equalled 272.37% of pre-tax profit, while the tax rate rose 42.83 percentage points to 69.20%.
Price around the results
Operating margin held despite softer revenue
Consolidated revenue declined 3.38% QoQ, while expenses fell 3.49%, limiting the operating-profit decline to 2.99% and lifting operating margin by 0.09 percentage points. The margin improvement did not translate into net profit growth because financing and tax costs rose sharply.
Interest and tax charges overwhelmed operating performance
Interest expense increased 66.27% QoQ and depreciation rose 4.02%, pushing pre-tax profit down 38.69% despite other income increasing 75.08%. Other income was 272.37% of pre-tax profit, making reported pre-tax earnings heavily dependent on non-operating income this quarter. The tax rate rose 42.83 percentage points to 69.20%, adding to the 74.38% decline in net profit.
Margin remains above the Industrials peer median
Swelect's 21.82% operating margin was 10.36 percentage points above the 11.46% median among 267 Industrials peers that had reported the same quarter. Sequentially, however, net profit fell from Rs 7.65 cr to Rs 1.96 cr as interest and tax costs increased.
Results filed after market close
The company filed its consolidated results after market close. There is no reported market reaction yet, so this quarter cannot be compared with the stock's post-results reaction history.
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 | ₹126 cr | ₹131 cr | -3.38% |
| Other income | ₹17 cr | ₹10 cr | +75.08% |
| Expenses | ₹99 cr | ₹102 cr | -3.49% |
| Operating profit | ₹28 cr | ₹28 cr | -2.99% |
| Operating margin (%) | 21.82% | 21.73% | — |
| Interest | ₹25 cr | ₹15 cr | +66.27% |
| Depreciation | ₹13 cr | ₹13 cr | +4.02% |
| Profit before tax | ₹6 cr | ₹10 cr | -38.69% |
| Tax | ₹4 cr | ₹3 cr | +60.95% |
| Net profit | ₹2 cr | ₹8 cr | -74.38% |
| EPS (₹) | ₹0.80 | ₹4.66 | -82.83% |
Operating margin of 21.82% compares with a Industrials sector median of 11.46% across 267 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 21.82%.
- Whether interest expense moves down from Rs 25.34 cr after rising 66.27% QoQ.
- Whether the tax rate moves below 69.20%.