Swojas Foods September Profit Halves as Revenue Drops 26%

Swojas Foods Limited reported net profit of Rs 17.88 lakh for the quarter ended September 30, 2026, down 51% from Rs 36.47 lakh a year earlier, as revenue from operations fell 26% to Rs 26.26 crore. Profit before tax also declined to Rs 23.30 lakh from Rs 47.44 lakh.

How did Swojas Foods perform in the September quarter?

Swojas Foods remained profitable in the September 2026 quarter, but both revenue and earnings were lower than a year earlier. Revenue from operations was Rs 26.26 crore, compared with Rs 35.25 crore in the quarter ended September 30, 2025, a decline of Rs 8.99 crore. Total income, including Rs 3.78 lakh of other income, was Rs 26.30 crore, against Rs 35.25 crore a year earlier when no other income was reported.

Sequentially, Swojas Foods reported lower revenue but higher profit than in the preceding June 2026 quarter. Revenue from operations fell from Rs 34.56 crore in the June quarter to Rs 26.26 crore in the September quarter, while net profit increased from Rs 9.53 lakh to Rs 17.88 lakh. Profit before tax rose from Rs 13.25 lakh in June 2026 to Rs 23.30 lakh in September 2026, though it remained below the Rs 47.44 lakh reported a year earlier.

Total expenses declined by Rs 8.72 crore from the September 2025 quarter, slightly less than the Rs 8.95 crore fall in total income. That difference was reflected in profit before tax, which fell by Rs 24.14 lakh year on year. The filing records no exceptional items or profit from discontinuing operations in either September quarter.

Why did Swojas Foods' September-quarter profit decline?

Swojas Foods' year-on-year profit decline coincided with a reduction in income that was larger than the reduction in total expenses. Revenue from operations decreased by 26%, while total expenses declined to Rs 26.06 crore from Rs 34.78 crore. As a result, profit before tax fell by about 51% to Rs 23.30 lakh in the September 2026 quarter.

Purchases of stock-in-trade were Rs 31.67 crore in the September quarter, down from Rs 38.95 crore in the year-earlier period. Changes in inventories of finished goods, work-in-progress and stock-in-trade were negative Rs 5.73 crore, compared with negative Rs 4.33 crore a year earlier. Employee benefits expense declined to Rs 3.01 lakh from Rs 3.85 lakh, while operating and other expenses were Rs 9.31 lakh versus Rs 11.71 lakh.

Tax expense was Rs 5.42 lakh in the September 2026 quarter, compared with Rs 10.97 lakh in the prior-year quarter. The current tax charge was Rs 5.50 lakh and deferred tax was a credit of Rs 0.08 lakh. Swojas Foods reported basic and diluted earnings per share of Rs 0.00 for the quarter, compared with Rs 0.12 a year earlier; the filing presents the per-share amount rounded to two decimal places.

The September-quarter result included no finance cost, unchanged from the corresponding quarter of 2025. Depreciation, amortisation and impairment expense was Rs 0.05 lakh, compared with Rs 0.08 lakh a year earlier. Other income of Rs 3.78 lakh partly lifted total income above the Rs 26.26 crore operating-revenue figure.

How did Swojas Foods' first-half results compare with last year?

Swojas Foods' profit for the half year ended September 30, 2026 fell 53% to Rs 27.41 lakh from Rs 58.60 lakh in the corresponding half of the previous year. Revenue from operations declined 9% to Rs 60.82 crore from Rs 66.68 crore, while total income was Rs 60.86 crore compared with Rs 66.71 crore.

Profit before tax for the first half was Rs 36.54 lakh, down from Rs 78.32 lakh in the prior-year half. Total tax expense declined to Rs 9.13 lakh from Rs 19.73 lakh, comprising current tax of Rs 9.21 lakh and a deferred-tax credit of Rs 0.08 lakh. The reported basic and diluted earnings per share for the six months were Rs 0.01, compared with Rs 0.19 for the half year ended September 30, 2025.

The first-half income change was accompanied by lower purchases and a larger negative inventory movement. Purchases of stock-in-trade were Rs 68.74 crore for the six months, compared with Rs 70.92 crore a year earlier, while inventory changes were negative Rs 8.55 crore versus negative Rs 5.46 crore. The company reports one business segment and one geographical segment, India, so the filing provides no separate segment-wise revenue or profit breakdown.

For the half year, Swojas Foods recorded other income of Rs 4.67 lakh, compared with Rs 3.26 lakh in the previous-year period. Employee benefits expense increased marginally to Rs 6.34 lakh from Rs 6.20 lakh, while operating and other expenses rose to Rs 24.13 lakh from Rs 11.71 lakh. Finance cost was nil in the 2026 half year, against Rs 2.25 lakh in the prior-year half.

What changed in Swojas Foods' capital and working capital?

Swojas Foods' balance sheet expanded between March 31, 2026 and September 30, 2026, with total assets rising to Rs 54.51 crore from Rs 28.21 crore. The company said it experienced significant movements in inventories, trade receivables and trade payables during the half year, relating primarily to business operations and working-capital requirements.

Current assets totalled Rs 52.12 crore at September 30, 2026, compared with Rs 28.20 crore at March 31, 2026. Cash and cash equivalents increased to Rs 77.96 lakh from Rs 19.08 lakh, while non-current loans rose to Rs 2.39 crore from Rs 0.50 lakh. Current tax liabilities were Rs 52.99 lakh at September 30, compared with Rs 43.78 lakh at March 31.

Equity share capital increased to Rs 48.29 crore at September 30, 2026 from Rs 38.66 crore at March 31, 2026. Swojas Foods had received in-principle approval from BSE Limited to issue up to 4,84,84,500 convertible warrants at Rs 16.50 per warrant, each convertible into one equity share with a face value of Rs 10 and a premium of Rs 6.50. Of those warrants, 2,59,84,500 had been subscribed, and 56,41,162 were converted into an equal number of equity shares during the September quarter.

The warrant issue had generated cumulative proceeds of Rs 32.16 crore as of September 30, 2026, all of which Swojas Foods reported as utilised. Of that total, Rs 31.75 crore was used for working-capital requirements and Rs 40.51 lakh for general corporate purposes. In the September quarter alone, the disclosure records Rs 6.98 crore of proceeds, including Rs 6.86 crore used for working capital and Rs 12.26 lakh for general corporate purposes.

Conclusion

Swojas Foods' September-quarter results show that revenue and net profit both declined from a year earlier, despite the company remaining profitable. Revenue from operations fell to Rs 26.26 crore and net profit declined to Rs 17.88 lakh, while first-half revenue was Rs 60.82 crore and first-half profit was Rs 27.41 lakh, both below the corresponding 2025 figures.

The next disclosures to watch are movements in inventories of Rs 35.25 crore, trade receivables of Rs 15.92 crore and trade payables of Rs 14.20 crore after the September 2026 half year. Further warrant conversions are also relevant: Swojas Foods had 2,59,84,500 subscribed warrants and had converted 56,41,162 warrants during the September quarter.