Swastika Infra Q2 FY27 Results: Profit Soars 75% YoY

Revenue grew 42% to INR 188 crore; Profit after tax reached INR 16 crore.

Reader Takeaway: Strong revenue growth and order visibility are countered by execution scale-up risks and working capital intensity.

What just happened

Swastika Infra reported a robust rebound in the second quarter of FY27, recovering from a sluggish Q1 caused by macroeconomic headwinds. The company posted a revenue of INR 188 crore, a 42% increase over the same period last year. Profit after tax (PAT) saw a significant jump of 75% to INR 16 crore. The management highlighted that the strong performance was driven by reaching key commissioning and erection milestones in its ongoing projects.

Why this matters

The company’s forward visibility is anchored by an unexecuted order book of INR 1,420 crore, which management states is 2.8x the revenue reported in FY26. With 85% of these orders concentrated in distribution projects, the firm is well-positioned for the ongoing infrastructure push. The company is actively bidding on new tenders worth INR 1,000–1,500 crore to further bolster its pipeline.

Margin and Finance Strategy

Management is targeting an EBITDA margin of 14%. To support profitability, the firm is prioritizing a reduction in finance costs. This is being achieved through a three-pronged approach: using IPO proceeds to deleverage the balance sheet, actively working to upgrade credit ratings from BBB+ to A-, and replacing traditional bank guarantees with more cost-effective surety bonds.

Risks to watch

While the company boasts a clean record regarding project delays, the rapid scaling of operations into new states remains an execution risk. Furthermore, the company’s working capital cycle was strained in H1 due to seasonality; shareholders should monitor if the expected easing of government budget clearances occurs in H2 as forecasted.

What to track next

The primary focus for investors in the coming quarters will be the execution pace of the large order book during the seasonally stronger H2 period. Additionally, the company’s ability to successfully transition to a better credit rating will be a critical indicator of its long-term financial health.