PFA
VASWANI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Vaswani Industries reported FY26 revenue of Rs. 4,674 million, up 13.5% from Rs. 4,116 million in FY25. However, profit after tax nearly halved to Rs. 4.24 crore from Rs. 8.60 crore, a 51% decline. EBITDA margin expanded from approximately 5% to 8.7%, helped by higher segment contributions from Iron & Steel and Power. Finance costs doubled year-on-year to Rs. 17.57 crore due to increased borrowings. Exceptional items of Rs. 3.53 crore (write-off of MAT credit entitlement and loss on buy-back of investment) were recorded. The Board also approved raising Rs. 9.87 crore via a preferential issue of 16.45 lakh equity shares at Rs. 60 each, entirely to promoter family members. Total assets grew significantly to Rs. 5,083 million from Rs. 3,619 million, driven by capitalisation of a Solar Power plant and an Induction Furnace plant.
The sharp fall in net profit despite higher revenue is concerning, especially with finance costs doubling. The preferential issue is dilutive to minority shareholders since all allottees are promoter-group insiders. The heavy debt-funded capital expenditure signals near-term pressure on profitability and cash flows.