Swastika Infra reported a significant 42% year-on-year increase in revenue for the second quarter of FY27, reaching INR188 crores. EBITDA also saw a substantial growth of 62% to INR27 crores. The company’s unexecuted order book stands at approximately INR1,420 crore, providing strong business visibility. Management highlighted a focus on efficient order execution, sustainable margins targeting around 14% EBITDA, and prudent working capital management.
Swastika Infra Reports Strong Q2 FY27 Performance
Swastika Infra Limited announced its financial results for the second quarter of the fiscal year 2027 (Q2 FY27), showcasing robust growth. Revenue for the quarter surged by 42% to INR188 crore compared to the same period last year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a significant increase of 62%, reaching INR27 crore. Profit After Tax (PAT) grew by 75% to INR16 crore.
Half-Yearly and Full-Year Performance
For the first half of FY27 (H1 FY27), the company reported a revenue of INR207 crore, marking a 5% year-on-year growth. EBITDA for H1 FY27 was INR35 crore (up 28% YoY), and PAT was INR20 crore (up 36% YoY). The company’s unexecuted order book has grown to approximately INR1,420 crore, which is equivalent to 2.8 times its FY26 revenue, indicating strong business visibility for the future.
Operational Focus and Outlook
The management emphasized its focus on efficient order execution, maintaining sustainable margins, and prudent working capital management as the business scales. The company is actively working to expand its geographical presence, with plans to enter two to three more states. They are also targeting new tenders worth INR1,000 to INR1,500 crore.
EBITDA Margin Guidance
Regarding EBITDA margins, the company aims to normalize them to around 14% on a full-year basis, consistent with previous years. This is driven by a favorable revenue composition and efficient project execution, including order commissioning and erection works. The company also noted that its working capital requirement for H1 should align with the annual requirement, with easing expected in H2 due to government budget clearances.
Key Projects and Diversification
Swastika Infra’s order book is primarily concentrated in the distribution segment, accounting for about 85%. The renewable segment contributes around 8%, and transmission accounts for 6%. The company is also actively bidding for projects funded by multilateral agencies like the World Bank and ADB, which helps in managing cash flow and receivables. They are also exploring opportunities in Distributed Energy Resources (DER) integration.
Financial Strategy and Debt Management
The company is strategically managing its borrowing costs. With the anticipated IPO proceeds supporting the balance sheet, the debt requirement is expected to decrease. Furthermore, an enhancement in their credit rating to the ‘A’ band and the increasing use of surety bonds over bank guarantees are expected to lower finance costs in the long term.
Future Growth and Strategy
Looking ahead, Swastika Infra plans to maintain its growth trajectory, aiming for similar turnover and EBITDA growth over the next five years. They expect competition to decrease, potentially leading to EBITDA growth of 1% to 2%. The company highlighted its unique ability to bid for large tenders of INR1,000 crore and above, positioning itself among the top players in India’s power T&D and renewable energy sector.
Source: BSE
