Swojas Foods fully deploys Rs 32.16 crore warrant proceeds

Swojas Foods Limited fully utilised Rs 32.16 crore received through its preferential issue of convertible warrants by September 30, 2026, directing Rs 31.75 crore to working-capital requirements. The remaining Rs 40.51 lakh went to general corporate purposes, and the company reported no unutilised warrant proceeds at the reporting date.

How did Swojas Foods use the warrant proceeds?

Swojas Foods used Rs 31.75 crore of its Rs 32.16 crore total warrant proceeds for working-capital requirements as of September 30, 2026. It used the remaining Rs 40.51 lakh for general corporate purposes, while reporting no allocation to capital expenditure, repayment of borrowings or other specified uses.

Working capital was therefore the principal disclosed use of the warrant money. Swojas Foods confirmed that the utilisation conformed with the objects stated in the warrant-issue offer documents or resolutions, and said the Audit Committee had reviewed the use of funds. The disclosure showed a nil unutilised balance for the amounts recorded at March 31, June 30 and September 30, 2026.

The company stated that any pending balance would be kept in short-term fixed deposits or bank balances until deployment for approved purposes. However, that treatment did not apply as of September 30 because the entire Rs 32.16 crore reported from the warrant issue had been utilised.

When did Swojas Foods receive and use the warrant proceeds?

Swojas Foods recorded Rs 20.25 crore of warrant proceeds in the March 31, 2026 column, Rs 4.93 crore in the June 30, 2026 column and Rs 6.98 crore in the September 30, 2026 column. These reported amounts add to the total proceeds of Rs 32.16 crore and matched the total utilisation reported in the statement.

Working-capital use was Rs 20.02 crore, Rs 4.88 crore and Rs 6.86 crore in the respective March, June and September 2026 columns. General corporate purposes accounted for Rs 23.04 lakh, Rs 5.21 lakh and Rs 12.26 lakh, respectively. In every column, total use equalled the reported proceeds.

The September 2026 column showed Rs 6.98 crore of proceeds and Rs 6.98 crore of utilisation. Of that amount, Rs 6.86 crore was assigned to working capital and Rs 12.26 lakh to general corporate purposes, leaving no balance pending deployment at September 30, 2026.

What warrant conversions did Swojas Foods report in the September quarter?

Swojas Foods converted 56,41,162 warrants into an equal number of equity shares during the quarter ended September 30, 2026. The company said it included the allotted shares in the calculation of earnings per share from their respective allotment dates.

BSE Limited had granted in-principle approval for Swojas Foods to issue up to 4,84,84,500 convertible warrants at Rs 16.50 per warrant. Each warrant is convertible into one equity share with a face value of Rs 10 and a premium of Rs 6.50 per share. The company reported that 2,59,84,500 warrants had been subscribed.

Swojas Foods reported paid-up equity share capital of Rs 48.29 crore at September 30, 2026, compared with Rs 42.65 crore at June 30, 2026 and Rs 38.66 crore at March 31, 2026. The filing reports the September-quarter warrant conversions alongside this movement, but does not provide a separate reconciliation of every change in share capital.

The company also said it assessed outstanding warrants under Indian Accounting Standard 33, or Ind AS 33, which governs earnings per share. Warrants determined to be anti-dilutive were excluded from diluted earnings-per-share calculations.

Why did Swojas Foods direct most proceeds to working capital?

Swojas Foods said inventories, trade receivables and trade payables saw significant movements during the half year ended September 30, 2026, primarily because of business operations and working-capital requirements. Inventory stood at Rs 35.25 crore at September 30, up from Rs 26.70 crore at March 31, while trade receivables rose to Rs 15.92 crore from Rs 1.20 crore.

The half-year cash-flow statement recorded an Rs 8.55 crore increase in inventories and an Rs 14.72 crore increase in trade receivables. Trade payables increased by Rs 14.06 crore over the same period, partly offsetting these working-capital movements. These changes provide the disclosed balance-sheet context for the Rs 31.75 crore allocation to working capital.

Net cash used in operating activities was Rs 11.32 crore for the half year ended September 30, 2026, compared with net cash generated from operations of Rs 1.29 crore in the corresponding previous half year. Financing activities included Rs 11.91 crore from warrants converted into equity shares, and cash and cash equivalents closed at Rs 77.96 lakh, compared with Rs 19.08 lakh at March 31.

Swojas Foods operates in one reportable business segment and one geographical segment, India. It therefore did not disclose a separate segment-wise breakdown of revenue, profit or working-capital use under Ind AS 108, the accounting standard for operating segments.

How did Swojas Foods' operating results change in the period?

Swojas Foods reported revenue from operations of Rs 60.82 crore for the half year ended September 30, 2026, down from Rs 66.68 crore in the corresponding previous half year. Profit before tax fell to Rs 36.54 lakh from Rs 78.32 lakh, while net profit after tax declined to Rs 27.41 lakh from Rs 58.60 lakh.

For the quarter ended September 30, 2026, revenue from operations was Rs 26.26 crore, versus Rs 35.25 crore in the quarter ended September 30, 2025. Quarterly net profit after tax was Rs 17.88 lakh, compared with Rs 36.47 lakh a year earlier. Total income for the September 2026 quarter was Rs 26.30 crore, including Rs 3.78 lakh of other income.

Swojas Foods reported paid-up equity capital of Rs 48.29 crore at September 30, while other equity was negative Rs 8.56 crore. Total assets were Rs 54.51 crore, including current assets of Rs 52.12 crore, compared with total assets of Rs 28.21 crore at March 31, 2026.

The Audit Committee reviewed the unaudited results and the board approved them on November 3, 2026. The statutory auditors completed a limited review and said nothing had come to their attention that caused them to believe the results failed to disclose required information or contained a material misstatement.

Conclusion

Swojas Foods reported that it had used all Rs 32.16 crore received from convertible warrants by September 30, 2026, with Rs 31.75 crore directed to working capital. The deployment coincided with higher inventories and receivables, while the half-year cash-flow statement showed an Rs 11.32 crore operating cash outflow, compared with an Rs 1.29 crore operating cash inflow a year earlier.

Investors can watch future disclosures for additional warrant conversions from the 2,59,84,500 subscribed warrants and changes in paid-up share capital. Subsequent results may also show whether inventory, receivables and trade payables, which moved materially in the half year ended September 30, 2026, moderate or continue to affect operating cash flow.