Swan Defence and Heavy Industries (SWANDEF) AI Stock Analysis

Swan Defence and Heavy Industries

(NSE:SWANDEF)

Select Model

Rating:49Neutral

Price Target:INR 2,430.00▼(-6.36% Downside)

Action:reiterated

Date:08/09/26

The score is primarily held back by weak financial performance—deep losses, highly leveraged balance sheet, and earnings volatility—partially offset by currently positive (but volatile) cash generation. Technicals are supportive due to a strong uptrend, but overbought indicators raise near-term pullback risk. Valuation remains unattractive on an earnings basis given the negative P/E.

Positive Factors

Revenue reboundThe FY2026 revenue step-up indicates materially improved business activity and creates a larger base for future operating leverage. Durability depends on converting this growth into margins, as gross, operating and net profit remain deeply negative.

Negative Factors

Extreme leverageVery high leverage and limited equity materially reduce financial resilience. Debt obligations can constrain investment, increase refinancing dependence and amplify losses, while the thin capital cushion leaves less protection against operating setbacks.

Swan Defence and Heavy Industries (SWANDEF) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 138.61B
Dividend Yield: ―
Average Volume (3M): 1,390
Price to Earnings (P/E): 39.7
Beta (1Y): 0.33
Revenue Growth: 641.66%
EPS Growth: ―
Country: India
Employees: 190
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Swan Defence and Heavy Industries Business Overview & Revenue Model

Company Description

Swan Defence and Heavy Industries Limited operates in the fields of vessel construction, comprehensive ship and rig repair and refurbishment, and heavy engineering, catering to both domestic Indian and international clients. The company builds a dive...

Swan Defence and Heavy Industries Financial Statement Overview

Summary

Despite a sharp FY2026 revenue rebound, profitability is deeply negative and highly volatile across years. Balance-sheet risk is elevated with extremely high leverage (~40x debt-to-equity) and a thin equity cushion, while cash flow is a partial offset (positive operating and free cash flow in FY2026) but has been volatile and not consistently supportive.

Income Statement

18Very Negative

Balance Sheet

14Very Negative

Cash Flow

46Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Dec 2023	Sep 2022	Mar 2020
Income Statement
Total Revenue	444.85M	2.82B	70.35M	31.61M	63.20M	754.13M
Gross Profit	134.42M	-1.94B	-91.68M	-10.84M	52.20M	455.88M
EBITDA	-70.16M	-1.50B	-996.96M	194.70B	-138.80M	-1.46B
Net Income	-422.80M	-2.26B	-21.16M	179.37B	-20.86B	-33.03B
Balance Sheet
Total Assets	29.11B	31.67B	338.07M	27.85B	37.41B	47.47B
Cash, Cash Equivalents and Short-Term Investments	323.20M	2.89B	291.80M	80.96M	278.20M	156.41M
Total Debt	26.15B	27.88B	25.05B	21.48B	29.61B	129.11B
Total Liabilities	26.66B	30.98B	25.96B	22.38B	211.33B	169.25B
Stockholders Equity	2.45B	696.37M	2.96B	5.47B	-173.90B	-121.78B
Cash Flow
Free Cash Flow	-2.60B	1.04B	-2.60B	14.28B	20.07B	-11.83B
Operating Cash Flow	-896.78M	1.82B	-967.98M	14.28B	20.07B	-11.83B
Investing Cash Flow	-1.89B	-4.40B	-1.62B	116.80M	23.50M	492.80M
Financing Cash Flow	2.69B	4.13B	2.69B	-14.60B	-19.99B	10.99B

Swan Defence and Heavy Industries Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SWANDEF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BEL	69Neutral	INR 2.70T	44.03	―	0.68%	20.28%	12.34%
IN:DATAPATTNS	69Neutral	INR 212.74B	79.41	―	0.26%	33.81%	24.90%
IN:MAZDOCK	63Neutral	INR 687.76B	28.05	―	1.06%	8.15%	5.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:GRSE	49Neutral	INR 222.53B	27.81	―	1.01%	39.64%	42.87%
IN:SWANDEF	49Neutral	INR 136.71B	39.65	―	―	641.66%	―
IN:COCHINSHIP	45Neutral	INR 294.39B	43.09	―	0.78%	-1.36%	-19.12%

* General Sector Average

Performance Comparison

IN:SWANDEF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SWANDEF	Swan Defence and Heavy Industries Ltd	2595.00	1782.85	219.52%
IN:BEL	Bharat Electronics Limited	369.10	-50.79	-12.10%
IN:COCHINSHIP	Cochin Shipyard Limited	1119.00	-657.22	-37.00%
IN:DATAPATTNS	Data Patterns (India) Limited	3800.00	1057.43	38.56%
IN:GRSE	Garden Reach Shipbuilders & Engineers Ltd.	1942.65	-611.89	-23.95%
IN:MAZDOCK	Mazagon Dock Shipbuilders Ltd.	1705.00	-1024.37	-37.53%

Swan Defence and Heavy Industries Corporate Events

Swan Defence Publishes Q1 FY27 Unaudited Results in Financial Express

Aug 12, 2026

Swan Defence and Heavy Industries Limited has notified the stock exchanges that it has published newspaper advertisements detailing its standalone and consolidated unaudited financial results for the quarter ended June 30, 2026. The disclosure, made...

Swan Defence wins Svitzer order for four next-generation TRAnsverse 3200 tugs

Aug 6, 2026

Swan Defence and Heavy Industries has secured a contract from Denmark-based towage operator Svitzer to build four advanced TRAnsverse 3200 tugs, with deliveries starting in early 2028. The order follows a competitive global tender and will see SDHI c...

Swan Defence to Join PL Capital Defence Conference in Mumbai

Jun 22, 2026

Swan Defence and Heavy Industries has announced that its management will participate in the PL Capital Defence Conference in Mumbai on June 25, 2026, meeting with institutional investors in person. The company emphasized that the schedule may change...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Swan Defence and Heavy Industries AI Stock Analysis