Market Share Gains
Expected: Q3 FY26HIGH confidence
What: Engine Sales Volume: 47,563 units
Impact: 37% Revenue growth
Swaraj Engines Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +14.1%Strong5w Streak
In , Swaraj Engines Ltd (Engines) is outperforming Nifty 500 with +14.1% relative strength. Fundamentals: Strong. On a 5-week streak.
Swaraj Engines Ltd Key Facts
- PE Ratio
- 24.4x
- Market Cap
- ₹4,859 Cr
- PAT Growth YoY
- +22%
- Revenue Growth YoY
- +20%
- OPM
- 14.0%
- RS vs Nifty 500
- +14.1%
PE: Mid ExpansionEmerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
🏦Virtually debt-free company
🌐FII stake increased 0.7% this quarter
💰Trading 47% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Market Share Gains
Q3 FY26HIGH
2. Tam Expansion Changing Consumption
Long-termMEDIUM
Key Risks
1. GST penalty of ₹9
LOW2. Potential margin compression due to rising crude oil prices impacting freight co
MEDIUMSector-Specific Signals
Engine Sales Volume47,563 units38.2%
M&M Sourcing SharePrimary supplier
One-time Regulatory Cost₹3.40 Cr
Key Numbers
PAT Growth YoY
+22%
Stable
Revenue YoY
+20%
Stable
Operating Margin
14.0%
0 bps YoY
PE Ratio
24.4
Current Price
₹3,999
Dividend Yield
2.75%
Fundamental Score
64/100
Strong
3Y PAT CAGR
+14%
Market Cap
4.9K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Swaraj Engines Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Tam Expansion Changing Consumption
Expected: Long-termMEDIUM confidence
What: Mechanisation trends: Not Quantified
What Are the Key Risks for Swaraj Engines Ltd?
Earnings deceleration risks from management commentary
GST penalty of ₹9
LOWTrigger: GST penalty of ₹9.55 Lakh for alleged tax credit violations in FY 2021-22.
Impact: PAT impact: ₹9.55 Lakh
Management view: Company plans to appeal and expects no material financial impact.
Monitor: regulatory
Potential margin compression due to rising crude oil prices impacting freight co
MEDIUMTrigger: Potential margin compression due to rising crude oil prices impacting freight costs.
Impact: PAT impact: Marginal compression
Management view: Sensitive to broader macroeconomic shifts in fuel and input costs.
Monitor: commodity
What Did Swaraj Engines Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹473.20 Cr
YoY +37%QoQ -6.23%
Revenue reached an all-time high for a third quarter, driven by record engine sales volume of 47,563 units.
EBITDA
₹61.95 Cr
YoY +40.2%Margin 13.1%
EBITDA growth outpaced revenue due to better cost control and higher volumes offsetting input inflation.
PAT
₹42.10 Cr
YoY +31.8%QoQ -15.26%
PAT growth was slightly tempered by a ₹3.40 crore exceptional item related to new labor code provisions.
Other Highlights
• Record Q3 engine sales of 47,563 units vs 34,415 units YoY.
• Nine-month PAT reached ₹141.75 crores, up 17.6% YoY.
• Exceptional item of ₹3.40 Cr for gratuity-related costs.
What Sector Metrics Matter for Swaraj Engines Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Engine Sales Volume
47,563 units
YoY 38.2%QoQ Not Given
Why: Driven by robust and sustained demand for tractor engines.
M&M Sourcing Share
Primary supplier
Why: Strategic integration as M&M holds a 52.13% stake.
One-time Regulatory Cost
₹3.40 Cr
Why: Provisioning for new labor code related to gratuity.
What Is Swaraj Engines Ltd's Management Guidance?
Forward-looking targets from management for Long-term
Revenue Growth Target
6%
Revenue Outlook
6% per annum
Volume
Crossing 2 lakh units milestone
Management Tone: BULLISH
How Fast Is Swaraj Engines Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +20% | +12% | Stable |
| PAT (Net Profit) | +22% | +14% | Stable |
| OPM | 14.0% | 0 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Swaraj Engines Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Swaraj Engines Ltd's latest quarterly results?
Swaraj Engines Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +22.2% (stable)
- Revenue Growth YoY: +20.3%
- Operating Margin: 14.0% (expanding)
Is Swaraj Engines Ltd's profit growing or declining?
Swaraj Engines Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +22.2% (latest quarter)
- PAT Growth QoQ: +31.0% (sequential)
- 3-Year PAT CAGR: +13.5%
- Trend: Stable — consistent growth pattern
What is Swaraj Engines Ltd's revenue growth trend?
Swaraj Engines Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +20.3%
- Revenue Growth QoQ: +15.4% (sequential)
- 3-Year Revenue CAGR: +12.2%
How is Swaraj Engines Ltd's operating margin trending?
Swaraj Engines Ltd's operating margin is expanding.
- Current OPM: 14.0%
- OPM Change YoY: 0.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Swaraj Engines Ltd's 3-year profit and revenue CAGR?
Swaraj Engines Ltd's long-term compounding rates
- 3-Year Profit CAGR: +13.5%
- 3-Year Revenue CAGR: +12.2%
Is Swaraj Engines Ltd's growth accelerating or decelerating?
Swaraj Engines Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -9.1% bps
- Sequential Acceleration: +47.0% bps
What is Swaraj Engines Ltd's trailing twelve month (TTM) performance?
Swaraj Engines Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹197 Cr
- TTM PAT Growth: +19.4% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +19.3% YoY
- TTM Operating Margin: 13.8%
Is Swaraj Engines Ltd overvalued or undervalued?
Swaraj Engines Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 24.4x
- Price-to-Book: 9.9x
What is Swaraj Engines Ltd's current PE ratio?
Swaraj Engines Ltd's current PE ratio is 24.4x.
- Current PE: 24.4x
- Market Cap: 4.9K Cr
- Dividend Yield: 2.75%
How does Swaraj Engines Ltd's valuation compare to its history?
Swaraj Engines Ltd's current PE is 24.4x.
- Current PE: 24.4x
- Valuation Assessment: Significantly Undervalued
What is Swaraj Engines Ltd's price-to-book ratio?
Swaraj Engines Ltd's price-to-book ratio is 9.9x.
- Price-to-Book (P/B): 9.9x
- Book Value per Share: ₹402
- Current Price: ₹3999
Is Swaraj Engines Ltd a fundamentally strong company?
Swaraj Engines Ltd is rated Strong with a fundamental score of 64.14/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +20.3% (10% weight)
- PAT Growth YoY: +22.2% (10% weight)
- PAT Growth QoQ: +31.0% (10% weight)
- Margins expanding (10% weight)
Is Swaraj Engines Ltd debt free?
Swaraj Engines Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1 Cr
What is Swaraj Engines Ltd's return on equity (ROE) and ROCE?
Swaraj Engines Ltd's return ratios over recent years
- FY2024: ROCE 52.0%
- FY2025: ROCE 56.0%
- FY2026: ROCE 59.0%
Is Swaraj Engines Ltd's cash flow positive?
Swaraj Engines Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹117 Cr
- Free Cash Flow (FCF): ₹139 Cr
- CFO/PAT Ratio: 60% (adequate)
What is Swaraj Engines Ltd's dividend yield?
Swaraj Engines Ltd's current dividend yield is 2.75%.
- Dividend Yield: 2.75%
- Current Price: ₹3999
Who holds Swaraj Engines Ltd shares — promoters, FII, DII?
Swaraj Engines Ltd's shareholding pattern (Mar 2026)
- Promoters: 52.1%
- FII (Foreign): 2.8%
- DII (Domestic): 9.1%
- Public: 36.0%
Is promoter holding increasing or decreasing in Swaraj Engines Ltd?
Swaraj Engines Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 52.1% (Mar 2026)
- Previous Quarter: 52.1% (Dec 2025)
- Change: -0.01% (decreasing — worth monitoring)
How long has Swaraj Engines Ltd been outperforming Nifty 500?
Swaraj Engines Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Swaraj Engines Ltd a new momentum entry or an established outperformer?
Swaraj Engines Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Swaraj Engines Ltd?
Swaraj Engines Ltd has 2 key growth catalysts identified from recent earnings analysis
- Market Share Gains — Record volumes directly drive the company's highest-ever quarterly revenue.
- Tam Expansion Changing Consumption — Increased rural mechanisation expands the addressable market for tractor engines.
What are the key risks in Swaraj Engines Ltd?
Swaraj Engines Ltd has 2 key risks worth monitoring
- [LOW] GST penalty of ₹9 — GST penalty of ₹9.55 Lakh for alleged tax credit violations in FY 2021-22.
- [MEDIUM] Potential margin compression due to rising crude oil prices impacting freight co — Potential margin compression due to rising crude oil prices impacting freight costs.
What is Swaraj Engines Ltd's management guidance for growth?
Swaraj Engines Ltd's management has provided the following forward guidance for Long-term
- Revenue growth target: 6%
- Margin outlook: Not Given
- Capex plan: Not Given for Not Given
- Management tone: bullish
What sector-specific metrics matter most for Swaraj Engines Ltd?
Swaraj Engines Ltd's most important sub-sector-specific KPIs from the latest concall
- Engine Sales Volume: 47,563 units (YoY 38.2%) (QoQ Not Given) — Driven by robust and sustained demand for tractor engines.
- M&M Sourcing Share: Primary supplier — Strategic integration as M&M holds a 52.13% stake.
- One-time Regulatory Cost: ₹3.40 Cr — Provisioning for new labor code related to gratuity.
Is Swaraj Engines Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Swaraj Engines Ltd may be worth studying
- Earnings growing at +22.2% YoY
- Operating margins are expanding — OPM at 14.0%
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹117 Cr
What is the investment thesis for Swaraj Engines Ltd?
Swaraj Engines Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +20.3% YoY
- Margins expanding
- Appears significantly undervalued
- Growth catalyst: Market Share Gains
Risk Factors (Bear Case)
- Key risk: GST penalty of ₹9
What is the future outlook for Swaraj Engines Ltd?
Swaraj Engines Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Significantly Undervalued
- Key Catalyst: Market Share Gains
- Key Risk: GST penalty of ₹9
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.