BSESwojas Foods LtdHighNeutral
Announced Sat, 8 Nov · 16:23 IST

Financial Results for the Quarter and half year ended 30.09.2025

Revenue Growth 20pctPat Growth 25pctEbitda Margin CompressionResults View source PDF

Price

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AI summary

Swojas Foods reported Q2 FY26 revenue from operations of Rs 35.25 crore, up about 350% year-on-year from Rs 7.83 crore in Q2 FY25; H1 FY26 revenue came in at Rs 66.68 crore versus just Rs 7.83 crore in H1 FY25. Net profit grew 35% YoY to Rs 36.47 lakh in Q2 FY26 and 89.6% to Rs 58.60 lakh in H1 FY26, with EPS of Rs 0.12 and Rs 0.19 respectively. However, EBITDA margins compressed sharply from roughly 6.9% in H1 FY25 to around 1.2% in H1 FY26, indicating that the headline growth has come from a much lower-margin trading-style business mix. Separately, the board approved issuing up to 4.85 crore convertible warrants at Rs 16.50 each to 11 non-promoter allottees on a preferential basis, raising up to Rs 80 crore and potentially diluting existing shareholders by about 61% on full conversion. Reserves remain negative at Rs 23.97 crore, though operating cash flow turned positive at Rs 1.29 crore in H1 FY26 against an outflow last year.

Likely market impact

Massive top-line growth is offset by very thin margins and a sizable Rs 80 crore preferential warrant issue that could hand new non-promoter investors around 61% of post-issue equity, posing significant dilution and control risk for existing shareholders despite the operational momentum.