Swan Defence posts sharp revenue growth as Rs 6,500 crore order book stretches visibility to FY31

Swan Defence and Heavy Industries Ltd. reported a sharp increase in shipbuilding activity during the first half of FY27, with revenue from operations rising 2.5 times year-on-year to Rs 99.46 crore. The company also said its firm Order Book stood at about Rs 6,500 crore as of September 30, 2026, providing stated revenue visibility through FY31.

The order book is substantial compared with the company’s recent operating scale. At about 23 times Swan Defence’s FY26 revenue from operations of Rs 282.14 crore, the backlog underlines the shift from a revival-stage shipyard towards a long-cycle project execution business. However, the conversion of this pipeline into revenue and cash flows will depend on vessel Construction progress, timely deliveries and customer milestone approvals.

For the September quarter, revenue from operations rose to Rs 68.85 crore from Rs 39.57 crore in the corresponding quarter last year. It was also more than double the Rs 30.61 crore recorded in the June quarter. Total income for the quarter reached Rs 125.68 crore, compared with Rs 70.23 crore a year earlier and Rs 42.18 crore sequentially.

Reported profit after Tax for the September quarter stood at Rs 566.44 crore, against a loss of Rs 0.55 crore in the year-earlier quarter and a loss of Rs 41.66 crore in the preceding quarter. For the first half, reported PAT was Rs 524.78 crore compared with a loss of Rs 15.17 crore a year ago.

The reported profitability figures need to be read alongside the company’s loss before tax. Swan Defence recorded an H1 FY27 loss before tax of Rs 38.37 crore, wider than the Rs 3.48 crore loss reported in H1 FY26. The company said its consolidated financial statements were restated following the merger of Triumph Offshore Private Ltd., effective from April 1, 2024.

The shipyard’s order book includes six chemical tankers for Norway-based Rederiet Stenersen AS, four ammonia dual-fuel bulk carriers for Energy ONE Ltd., four harbour tugs for A.P. Moller-Maersk-backed Svitzer and a training ship for the Royal Navy of Oman. The company said the order book includes government subsidy and is calculated at a USD/Rs rate of 95.15.

During the half year, Swan Defence secured Energy ONE’s order for four 92,500 DWT ammonia dual-fuel bulk carriers. The company described it as the first such vessel order awarded to an Indian shipyard. Deliveries are expected from FY30. It also won Svitzer’s order for four TRAnsverse 3200 harbour tugs, with deliveries scheduled to begin in early 2028.

Beyond newbuild projects, the company completed seven repair and refit assignments during the half year, involving Indian Coast Guard vessels, commercial ships and offshore rigs. These included the refit and dry-docking of pollution-control vessel ICGS Samudra Pavak, which Swan Defence said was completed ahead of schedule.

In heavy engineering, steel cutting began for five barge unloaders for L&T Mines and Minerals, each with a capacity of 2,500 tonnes per hour. The company also received in-principle approval under the Shipbuilding Development Scheme for a brownfield expansion that includes a proposed 600-tonne Goliath crane and a 40-tonne ELL crane. Capital assistance and interest incentives remain subject to scheme conditions.

Management said it had completed its resolution plan and settled obligations to the Committee of Creditors, and was now focused on building execution capabilities. The company expects domestic shipbuilding demand to improve over the next 12 to 18 months, supported by government policy and proposed defence programmes.

As of 10:15 a.m. on October 13, 2026, Swan Defence shares were trading at Rs 2,937.95, up 2.21 per cent from the previous close of Rs 2,874.55. The company’s market capitalisation stood at about Rs 15,143.8 crore.

Disclaimer: The article is for informational purposes only and not investment advice.