On 7th August 2025, Swati Projects Limited announced its Q1 FY26 results, presenting a mixed financial picture. While revenue rose sharply year-on-year, the company reported a consolidated loss, reflecting challenges in cost management and profitability.
For Q1 FY26, the company posted a consolidated PAT of -₹0.65 crore against a profit of ₹0.17 crore in Q1 FY25, marking a 478.49% YoY decline in profitability. On the other hand, revenue increased 64.75% YoY to ₹0.63 crore, highlighting rising demand and business activity.
Interestingly, the standalone performance was far stronger, showing 7.46% PAT growth YoY alongside 55.59% revenue growth.
Financial Performance Overview
Consolidated Results
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹0.63 Cr | ₹0.38 Cr |
| Profit Before Tax (PBT) | -₹0.57 Cr | ₹0.19 Cr |
| Profit After Tax (PAT) | -₹0.65 Cr | ₹0.17 Cr |
Highlights:
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Revenue grew 64.75% YoY from ₹0.38 crore to ₹0.63 crore.
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PAT swung from a profit of ₹0.17 crore to a loss of ₹0.65 crore.
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Rising costs and expenses erased gains from higher sales.
Standalone Results
| Particulars | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | ₹0.46 Cr | ₹0.30 Cr |
| Profit Before Tax (PBT) | ₹0.28 Cr | ₹0.20 Cr |
| Profit After Tax (PAT) | ₹0.22 Cr | ₹0.20 Cr |
Highlights:
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Revenue rose 55.59% YoY to ₹0.46 crore.
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PAT improved slightly by 7.46% YoY to ₹0.22 crore.
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Standalone results show better cost efficiency compared to consolidated performance.
Key Takeaways from Q1 FY26
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Revenue Growth
Both consolidated and standalone figures indicate healthy top-line growth, pointing to increased market activity. -
Profitability Concerns
Consolidated PAT fell sharply into negative territory, suggesting that overheads, project expenses, or one-time costs overshadowed revenue gains. -
Standalone Strength
The standalone performance was positive, with modest profit growth, highlighting that the company’s core operations remain viable.
Share Price Performance
Swati Projects’ stock reflected volatility following the results. On 22nd August 2025, the stock opened at ₹31.31 but slipped to ₹29.29 intraday.
| Period | Returns (%) |
|---|---|
| 1 Year | -85.43% |
| 5 Years | +59.36% |
| Max Period | +59.36% |
Observations:
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The past year has been extremely weak, with an 85.43% decline in share price.
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Over 5 years, the stock has delivered 59.36% returns, suggesting occasional recoveries.
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Over the maximum timeframe, returns remain at 59.36%, reflecting limited long-term wealth creation.
Analysts’ Expectations Post Q1 FY26
Analysts remain cautious but see potential for a rebound if the company manages profitability better.
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Bullish Case: Share price could touch ₹50.30 per share in the next year if revenue growth sustains and losses narrow.
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Bearish Case: If losses continue, the stock may fall to ₹25.30 per share.
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Neutral Case: Likely consolidation between ₹27–₹35 per share in the near term.
Business Model and Growth Drivers
Swati Projects operates in project management, construction, and infrastructure solutions, though relatively small in scale compared to larger peers.
Growth Drivers:
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Expanding project portfolio in niche markets.
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Revenue growth through strategic contracts.
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Standalone profitability indicating resilience in core operations.
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Opportunities from India’s infrastructure push and urbanisation.
Risk Factors
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High Volatility: Share price history shows sharp declines, raising investor risk.
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Profitability Pressure: Consolidated results highlight weak cost management.
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Small Scale: Limited size compared to peers makes Swati Projects vulnerable to demand shocks.
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Liquidity Concerns: Small-cap stocks often face low trading volumes, affecting exits.
Comparative Analysis with Industry Peers
| Company | Market Cap (₹ Cr) | P/E Ratio | 1-Year Return (%) | 5-Year Return (%) |
|---|---|---|---|---|
| Swati Projects | ~₹100 Cr (est.) | Negative | -85.43% | +59.36% |
| NBCC (India) Ltd. | ~₹20,000 Cr | 28.4x | +18% | +160% |
| PSP Projects Ltd. | ~₹2,800 Cr | 24.2x | +15% | +140% |
| KNR Constructions | ~₹11,000 Cr | 20.8x | +22% | +175% |
Insights:
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Swati Projects is significantly smaller and riskier than listed peers like NBCC or PSP Projects.
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Larger peers show steady profitability, while Swati’s volatility adds speculative risk.
Future Outlook
The future trajectory of Swati Projects will depend on:
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Profitability Turnaround: Narrowing consolidated losses while maintaining revenue growth.
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Execution of Projects: Timely completion of contracts to build credibility.
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Financial Discipline: Reducing overheads and improving operational margins.
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Investor Confidence: Sustained profit in standalone results could restore trust.
Conclusion
Swati Projects’ Q1 FY26 results show a revenue growth story overshadowed by profit challenges. While consolidated results reveal a steep swing into losses, standalone figures highlight operational strength with modest profit growth.
The stock remains highly volatile, with a massive 85% drop in the past year, although long-term investors have seen some gains over five years. Analysts set wide trading targets between ₹25.30 and ₹50.30, reflecting uncertainty.
For investors, Swati Projects is a speculative high-risk play. Its improving revenue trend is encouraging, but unless profitability stabilises at the consolidated level, the stock will continue to face volatility. High-risk investors may consider limited exposure, while conservative investors should wait for consistent positive results.
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