4,712% Revenue Growth: Defence Stock Hits 5% Upper Circuit After Announcing Q4 Results

Synopsis: Swan Defence and Heavy Industries Limited reported FY26 revenue of ₹282.14 crore, up 3,913%, built a $500 million order book, and plans to raise ₹4,000 crore despite posting a net loss of ₹225.91 crore.

This Small-Cap Defence Stock, engaged in shipbuilding, ship repair, heavy engineering, offshore fabrication, and defence vessel construction, serving both commercial and government customers, hit a 5 percent upper circuit after the company reported March quarterly results with a 4,712 percent YoY increase in revenue and is planning to raise funds up to Rs 4,000 crore.

With a market capitalization of Rs. 10,832.77 crores, the shares of Swan Defence and Heavy Industries Limited hit a 5 percent upper circuit of Rs. 2,056.25 per share on Friday, up from its previous closing price of Rs. 1,958.35 per share.

Q4 FY26 Result Walkthrough

Coming into the quarterly results of Swan Defence and Heavy Industries Limited, the company’s consolidated revenue from operations increased by 4,712.22 percent YOY, from Rs. 4.91 crore in Q4 FY25 to Rs. 236.28 crore in Q4 FY26, and grew by 3,925.21 percent QoQ from Rs. 5.87 crore in Q3 FY26.

In Q4 FY26, Swan Defence and Heavy Industries Limited’s consolidated net loss increased, reaching Rs. 142.15 crore compared to Rs. 22.75 crore during the same period last year. As compared to Q3 FY26, the net loss has also increased from Rs. 33.11 crore.

Swan Defence and Heavy Industries Limited’s basic earnings per share stood at Rs. -26.98 as against Rs. -4.32 recorded in the same quarter in the previous year, FY2025.

Annual Performance of FY26

Swan Defence and Heavy Industries Limited’s revenue has increased from Rs. 7.03 crore in FY25 to Rs. 282.14 crore in FY26, which has grown by 3,913.37 percent. The net loss of the company has grown from Rs. 181.03 crore in FY25 to Rs. 225.91 crore in FY26.

Swan Defence and Heavy Industries Limited’s revenue has grown at a CAGR of 354.68 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at -7.55 percent and -124 percent, respectively. Swan Defence and Heavy Industries Limited’s debt-to-equity ratio is 40x.

Raising of Funds

Swan Defence and Heavy Industries Limited has approved a proposal to raise up to Rs 4,000 crore through various funding routes. The company may raise the funds through Qualified Institutional Placement (QIP), debt securities, preferential issue, further public offer (FPO), rights issue, or other permitted methods. 

The fund raise is aimed at supporting the company’s growth plans, strengthening its financial position, and meeting future business and capital requirements. The final structure and timing of the fund raise will be decided based on market conditions and regulatory approvals.

Order Book and Key Milestones

Swan Defence and Heavy Industries (SDHI) achieved several important milestones during the year, highlighting a strong operational turnaround and improving business outlook. The company successfully completed its resolution plan under the Corporate Insolvency Resolution Process (CIRP) by prepaying obligations that were originally due in 2026 and 2027, strengthening its financial position and demonstrating its commitment to reviving India’s largest shipbuilding facility.

The company has also built a robust order book worth around $500 million through a series of major contracts. These include orders for six chemical tankers from Norway-based Rederiet Stenersen AS, four ammonia dual-fuel bulk carriers, and a defence export order from the Government of Oman for a training vessel. In addition, the company successfully completed around 20 ship repair and refit projects on or ahead of schedule, reflecting strong execution capabilities.

Company Overview

Swan Defence and Heavy Industries Limited (SDHI) was established in 1997 and is an Indian public company specializing in shipbuilding, defence manufacturing, and heavy engineering. Formerly known as Reliance Naval and Engineering Limited, it operates one of India’s largest shipyards and plays a growing role in the nation’s defence and commercial maritime sectors.

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