1. At a Glance
Swan Energy went from textiles to LNG terminals, threw in some UAE chemicals, and is now buying up defence shipyards. Wild, right? A ₹15,743 Cr market cap with 116% sales growth in 3 years—but one FY25 quarter had a ₹656 Cr operating loss and ₹1,944 Cr “other income.” Hmm…
2. Introduction with Hook
Imagine a textile uncle waking up one day and saying, “Let’s build LNG terminals… and also buy a naval shipyard.” That’s Swan Energy for you.
- 3-year profit CAGR: 89%
- FY25 net profit: ₹874 Cr, but is that from ops or creative accounting yoga?
And now… they’re doing defence manufacturing too. Because why not?
3. Business Model (WTF Do They Even Do?)
Swan Energy is basically the IKEA of conglomerates—just without instructions:
- LNG Terminal: Jafrabad FSRU in Gujarat (first of its kind in India).
- Chemical Trading: Owns Veritas India Ltd—distribution hub with UAE footprint.
- Defence & Shipbuilding: Acquired Reliance Naval (now Swan Defence).
- Real Estate: Still developing Mumbai mill land and office spaces.
Sectors: energy, logistics, petrochemicals, defence, real estate. Still confused? Join the club.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,438 | 5,017 | 4,938 |
| Net Profit (₹ Cr) | -61 | 586 | 874 |
| Operating Profit (₹ Cr) | 231 | 868 | -141 |
| EPS | -1.36 | 9.61 | 24.10 |
Catch: FY25 “Other Income” = ₹1,944 Cr. Without it, profits are… well, underwater like a submarine.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹502 |
| Market Cap | ₹15,743 Cr |
| P/E | ~20.8x |
| Book Value | ₹234 |
| CMP / BV | 2.14x |
Fair Value Range
- Base Case (12x Clean EBITDA): ₹320 – ₹370
- Optimistic (LNG terminal ramps, defence wins): ₹500 – ₹575
- Bear Case (other income = non-repeatable): ₹240 – ₹300
FV Range: ₹300 – ₹575
Because when your P&L looks like a thriller script, you go wide.
6. What’s Cooking – News, Triggers, Drama
- RNEL Acquisition (Now Swan Defence): Full takeover of shipyard ops.
- New SPV: 60% stake in Swan Balu Heavy Industries (aerospace, railways).
- UAE Expansion: Veritas terminal in Hamriyah gaining traction.
- ₹111 Cr Order: Defence unit bagged a Coast Guard repair gig.
- Debt Repayment: Triumph Offshore repaid ₹824 Cr, cleaning up nicely.
Translation: From gas tanks to torpedoes—diversification or dilution?
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 31 |
| Reserves | 7,311 |
| Borrowings | 2,802 |
| Total Liabilities | 13,604 |
| Fixed Assets + CWIP | 7,604 |
| Investments | 668 |
Key Points:
- Debt reduced from ₹4,985 Cr (FY23) to ₹2,802 Cr (FY25).
- Assets up 33% YoY.
- Massive CWIP: ₹3,870 Cr = expansion mode ON.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹-529 Cr | ₹1,346 Cr | ₹-560 Cr | ₹+257 Cr |
| FY24 | ₹26 Cr | ₹-512 Cr | ₹1,604 Cr | ₹1,118 Cr |
Observations:
- Negative cash from ops? Red flag.
- Cash inflows driven by asset sales/investments.
- Real biz not funding itself yet.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 14.3% |
| ROE | 11.1% |
| OPM | -3% |
| Debtor Days | 100 |
| Inventory Days | 146 |
| P/E | 20.8 |
Verdict:
ROCE/ROE have improved, but OPM is negative = business is still under construction. Profits? Coming from “elsewhere.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM % | PAT | Other Income |
|---|---|---|---|---|
| FY25 | ₹4,938 Cr | -3% | ₹874 Cr | ₹1,944 Cr |
| FY24 | ₹5,017 Cr | 17% | ₹586 Cr | ₹82 Cr |
| FY23 | ₹1,438 Cr | 16% | -₹61 Cr | ₹11 Cr |
Truth Bomb:
Remove ₹1,944 Cr and Swan looks more like a seagull crash-landing on a windmill. Core biz still ramping.
11. Peer Comparison
| Company | CMP | P/E | OPM | ROE | Market Cap |
|---|---|---|---|---|---|
| Swan Energy | ₹502 | 20.8 | -3% | 11.1% | ₹15,743 Cr |
| Supreme Petro | ₹813 | 41.4 | 8.9% | 17.3% | ₹15,291 Cr |
| Rain Ind | ₹150 | – | 8.4% | -6.4% | ₹5,068 Cr |
| Manali Petro | ₹68 | 37.3 | 6.5% | 2.9% | ₹1,175 Cr |
Conclusion:
Priced like a market leader, but still in construction phase. Risk-reward is aggressive.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 53.96% (down from 64.09%) |
| FIIs | 10.25% |
| DIIs | 13.24% |
| Public | 22.53% |
| Shareholders | 1.5 lakh+ |
Takeaways:
- Promoter selling ≠ confidence boost.
- FII/DII holding climbing, but stabilizing.
- Retail got in at ₹800, now holding bags at ₹502.
13. EduInvesting Verdict™
Swan Energy is an ambitious empire-building story. Textiles to LNG to warships is not your average growth arc. But while the story is juicy, the financials are spicy in a not-so-edible way.
Pros:
- Great vision, bold bets
- Revenue/asset growth off the charts
- Debt reducing, infra in place
Cons:
- Reliance on “other income”
- Real cash flow struggles
- Operating losses in FY25 = not self-sufficient yet
- Promoter stake dropping
Final Thoughts:
This bird can fly, but might first need to learn how to walk without ₹1,900 Cr of “magic” income. Proceed only if you like holding on during turbulence.
Metadata
Written by EduInvesting Analyst | July 15, 2025
Tags: Swan Energy, LNG, FSRU, Defence Manufacturing, Veritas India, RNEL, Swan Defence, Petrochemical Trading, Infra Conglomerate
