Swaraj Engines delivers steady Q2 margin growth

Swaraj Engines Limited (NSE: SWARAJENG) reported Q2 FY27 revenue of ₹635.2 crore, up 26% YoY. Net profit increased 22% to ₹61 crore, while EBITDA rose 27% to ₹86.45 crore. Key details • Revenue: ₹635.2 crore, up 26% YoY. • Net profit: ₹61 crore, up 22% YoY. • EBITDA: ₹86.45 crore, up 27% YoY. • EBITDA margin improved slightly to 13.61% from 13.49% a year ago. My view The key positive is that EBITDA growth of 27% slightly outpaced revenue growth of 26%. That helped the company maintain and marginally improve operating margins despite the higher revenue base. Net profit growth at 22% was slightly slower than EBITDA growth, but the quarter still shows healthy operating performance. For Swaraj Engines, the next important question is whether this growth can continue as tractor demand and production volumes move through the second half of FY27. What I’m watching next I will watch engine sales volumes, revenue growth and whether EBITDA margin can remain above the 13.5% level in the coming quarters. Stance: Positive on revenue and operating profit growth, with stable margins adding to the quality of the quarter. Disclosure: I do not have any holding or position in the stock mentioned above.