1. At a Glance
What do you call a company that started with spinning cotton and now spins capital like a Bollywood producer? Swan Energy Limited. The 116-year-old veteran, once known for polyester and patience, now deals in LNG terminals, defence shipyards, and debt reduction like it’s doing cardio for fun. With a market cap of ₹14,405 crore and a current price of ₹460, Swan has become the corporate version of a mid-life crisis—buying defence companies and flirting with petrochemicals in UAE.
But jokes aside, Q2 FY26 was spicy. Quarterly sales stood at ₹1,138 crore, up 10.3% YoY, but the company managed to swing a PAT of -₹5.87 crore, a heroic 107% fall from last year’s ₹67 crore profit. The Operating Profit Margin fell to 0.44%, proving that growth can be overrated when your expenses run faster than your revenue. ROE stands at -4.47%, and ROCE is an equally uninspired -1.44%, making you wonder if Swan’s real business is making Excel sheets look sad.
Still, the story’s not over—after paying down over ₹2,400 crore in debt and acquiring Reliance Naval & Engineering Ltd (RNEL), Swan is slowly turning from a textile uncle into an energy-and-defence chad.
2. Introduction
Once upon a time in 1909, when oil was something you applied to your hair and not your portfolio, Swan Mills Ltd spun cotton for a nation that hadn’t even invented GST. Fast forward a century, and the company—now Swan Energy Limited (SEL)—decided that the only spinning worth doing was spinning up new subsidiaries.
From weaving fabric to weaving financial statements, Swan has reinvented itself multiple times: first textiles, then real estate, and now, the high-stakes world of LNG terminals and shipbuilding. Somewhere between polyester shirts and floating gas terminals, Swan found its mojo again—or maybe just a new loan.
The company’s biggest project, the Jafrabad LNG terminal in Gujarat, promises to be India’s first Greenfield Floating Storage and Regasification Unit (FSRU) terminal. Once operational, it’ll supply clean energy to big names like ONGC, IOCL, BPCL, and GSPCL. Meanwhile, its recent acquisition of Reliance Naval and Engineering (now Swan Defence) adds a layer of steel to its diversification. From gas to guns—Swan’s diversification looks like a finance student’s nightmare PowerPoint, but hey, it’s working.
While profits dipped this quarter, the group’s expansion, debt trimming, and fundraise of ₹3,319 crore through QIP show that Swan is now gearing up for something much bigger than its humble textile beginnings.
3. Business Model – WTF Do They Even Do?
If you open Swan Energy’s annual report without context, you might think five companies got stuck in a blender. But let’s break it down:
1. Distribution & Development (74% of H1 FY25 revenue):
After acquiring Veritas India Ltd for ₹260 crore in 2023, Swan became a distributor of chemicals and petrochemicals across India and the UAE. Veritas runs a 1,70,000 MT terminal at Hamriyah, which sounds fancy until you realise it’s essentially a massive warehouse of flammable liquids—basically Tinder for molecules.
2. Energy (18% of H1 FY25):
This is the crown jewel. The Jafrabad LNG Terminal, under subsidiaries Swan LNG and Triumph Offshore, is a 10 MMTPA project where Phase 1 (5 MMTPA) is almost ready. With long-term offtake agreements
from state giants like IOCL and ONGC, it’s a “tolling” business model—Swan won’t sell gas; it’ll charge rent for letting others use the pipe. Think of it as India’s Airbnb for natural gas.
3. Construction (3%):
Their real estate arm has developed 26.16 lakh sq ft across metros and leased properties to Harman and Google Connected Services, earning ₹31 crore annually. Basically, they’re the landlords of tech bros now.
4. Warehousing (3%):
Operates 6,00,000 sq ft of storage through Veritas Logistics. Not exciting, but necessary. Every empire needs basements.
5. Textile (2%):
The nostalgia business. An Ahmedabad unit still produces 1 lakh metres per day—the corporate version of your dad still keeping his 1990 scooter “for memories.”
6. Defence & Heavy Engineering:
After acquiring Reliance Naval, Swan now owns India’s largest dry dock—662 meters long. That’s enough to park your entire midcap portfolio and a few egos.
So yes, Swan Energy is technically a diversified conglomerate—but spiritually, it’s a magician. One minute it’s a textile company, next minute it’s fixing Coast Guard ships.
4. Financials Overview
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹1,138 Cr | ₹1,032 Cr | ₹1,213 Cr | +10.3% | -6.2% |
| EBITDA | ₹5 Cr | ₹120 Cr | ₹26.7 Cr | -95.8% | -81.1% |
| PAT | -₹5.87 Cr | ₹67 Cr | ₹26.9 Cr | -109% | -121.8% |
| EPS (₹) | -0.12 | 1.64 | 0.61 | -107.3% | -119.7% |
Commentary:
The profit vanished faster than free snacks at an AGM. Revenue grew modestly, but expenses ballooned like a PSU’s travel budget. Other income, once the saviour of the P&L (₹1,868 Cr in Dec 2024), took a nap this quarter, leaving EBITDA gasping. The numbers scream “transition phase,” but investors are hoping it’s the good kind of phase—the one before profits, not insolvency.
5. Valuation Discussion – Fair Value Range (Educational Only)
Method 1: P/E Ratio
EPS (TTM) = ₹18.5
Industry P/E = 18.1
→ Fair Value = 18.5 × 18.1 = ₹334 per share
Company P/E = 24.8
→ At CMP ₹460, it trades ~38% above peer median.
Method 2: EV/EBITDA
EV = ₹15,710 Cr; EBITDA (TTM) = ₹1,390 Cr (approx. from FY24 base before other income distortions)
→ EV/EBITDA ≈ 11.3× (vs industry median ~9×)
→ Fair range: ₹370 – ₹410 per share
Method 3: DCF (Conceptual)
Assuming 10% CAGR in operating cash flow and
