Swelect Energy Systems Reports 28% Decline To ₹8.5 Crore In Q4 Net Profit

Mumbai: Swelect Energy Systems Limited reported a 7.5percent year-on-year decline in consolidated revenue from operations to Rupees 202.4 crore in Q4 FY26 compared with Rupees 218.8 crore in the corresponding quarter last year. Net profit for the quarter fell 28 percent to Rupees8.5 crore from Rupees11.8 crore a year earlier. Total income stood at Rupees 209.8 crore against Rupees 232.9 crore in Q4 FY25. Profit before tax declined to Rupees 12.8 crore from Rupees 15.7 crore in the year-ago period, reflecting pressure on margins and higher operating costs during the quarter.

Sequential And Annual Growth

On a quarter-on-quarter basis, revenue from operations increased 46 percent from Rupees 138.6 crore reported in Q3 FY26. However, net profit declined 15 percent sequentially from Rupees 10.0 crore, while profit before tax fell from Rupees 14.0 crore in the previous quarter. Finance costs rose to Rupees 17.2 crore in Q4 FY26 from Rupees 14.5 crore in Q3 FY26.

Employee benefit expenses also increased to Rupees 10.8 crore from Rupees 9.9 crore. Total expenses during the quarter stood at Rupees 196.9 crore compared with Rupees 131.4 crore in the preceding quarter. The company also reported an exceptional item impact linked to labour code-related employee benefit provisions.

What Drove The Numbers

The company operates in the solar and related energy business. Material consumption during the quarter stood at Rupees 88.8 crore, while subcontracting and processing charges rose to Rupees 22.1 crore. Other expenses increased sharply to Rupees 30.1 crore from Rupees 12.2 crore in the previous quarter, affecting profitability despite higher sales. Depreciation and amortisation expenses increased to Rupees 12.8 crore from Rupees 11.7 crore sequentially. Basic earnings per share declined to Rupees 5.34 from Rupees 7.76 in the year-ago quarter. The company stated that labour code implementation led to additional employee benefit liabilities booked during the year.

Full-Year Performance

For FY26, consolidated revenue from operations increased 5.7 percent to Rupees 657.1 crore compared with Rupees 621.7 crore in FY25. Net profit for the year rose to Rupees 47.4 crore from Rupees 11.3 crore in the previous financial year. Profit before tax increased to Rupees 75.6 crore from Rupees 43.6 crore a year earlier. The board recommended a final dividend of Rupees 3.50 per equity share for FY26, subject to shareholder approval at the upcoming AGM.

Disclaimer: This report is based on audited and unaudited financial results filed by the company and does not constitute investment advice.