1. At a Glance
Swan Energy Limited — or as the market currently treats it, “everything everywhere all at once, but profits optional” — sits at a ₹13,107 Cr market cap with a CMP of ₹418, nursing a -22.8% 1-year return while juggling LNG terminals, petrochemical trading, shipbuilding, real estate, warehouses, and yes… textiles (because why not).
Latest Q3 FY26 numbers show ₹1,150 Cr quarterly revenue with a PAT loss of ₹1.18 Cr, ROE at -4.47%, and ROCE at -1.44% — the kind of ratios that make auditors sigh deeply and long-term investors open Excel at 2 AM.
Debt, to their credit, has been chopped from ₹4,985 Cr (FY23) to ₹2,543 Cr (Sep FY25) post a ₹3,319 Cr QIP, but profitability is still behaving like that friend who says “next year pakka”.
The real tease?
- A 10 MMTPA LNG terminal with 20-year use-or-pay contracts
- India’s largest dry dock revived via ex-Reliance Naval
- And yet… EPS at -0.31
Is Swan Energy a future infrastructure powerhouse or a beautifully diversified balance-sheet thriller? Let’s open the files. 🕵️♂️
2. Introduction
Founded in 1909 as Swan Mills Ltd, Swan Energy Limited has lived many lives. Textiles, chemicals trading, real estate, LNG, shipyards — Swan hasn’t pivoted; it’s done full Olympic gymnastics.
Over the last five years, revenue CAGR sits at a respectable ~71%, but profit CAGR politely refuses to show up. Why? Because Swan has spent the last decade building assets first and worrying about ROE later — a strategy loved by bankers, tolerated by institutions, and constantly interrogated by retail investors.
The company today is less “textile manufacturer” and more infrastructure holding company with a chemical trading engine. FY24 and FY25 were heavy with CWIP, acquisitions, debt restructuring, and one mega QIP.
The result?
- Massive asset base
- Improving liquidity
- But earnings distorted by ₹1,868 Cr of other income and high depreciation
So the big question: Are we finally near the harvesting phase, or is this still the sowing season?
3. Business Model – WTF Do They Even Do?
Let’s decode Swan’s business like a Netflix documentary with too many episodes.
1) Distribution & Development (74% of H1 FY25 revenue)
This is the cash engine. Through Veritas India Ltd, Swan trades and distributes chemicals and petrochemicals used in paints, refining, and industrial applications.
Key highlights:
- Acquired majority stake for ₹260 Cr (Jan 2023)
- UAE terminal capacity: 1,70,000 MT at Hamriyah
- Asset-light, high-working-capital, fast-turnover business
This segment explains why sales ballooned, debtor days improved (453 → 100), and inventory days collapsed from “textile era madness” to semi-normalcy.
2) Energy – LNG Terminal (18%)
This is the crown jewel, the thesis driver, the reason many investors even tolerate the current losses.
- India’s first greenfield LNG FSRU-based port terminal at Jafrabad, Gujarat
- Total capacity: 10 MMTPA
- Phase 1: 5 MMTPA, nearing completion
- 4.5 MMTPA already booked for 20 years on use-or-pay basis
- GSPCL: 1.5
- IOCL: 1
- BPCL:
