SWANCORP - Swan Corp

📊 NSE: SWANCORP 🏢 Petrochemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total consolidated income grew 35% YoY to INR 6,883.68 Cr in FY 2024-25. The Petroleum and Petroleum product segment grew 12% to INR 4,315.27 Cr. The Energy segment reported revenue of INR 381.04 Cr, reflecting a consolidation phase.

Geographic Revenue Split

Not specifically disclosed by percentage, but operations are centered in India (Gujarat for LNG/Shipyard, Maharashtra for Textiles/Real Estate) with global sourcing for the petroleum trading business.

Profitability Margins

Operating Profit Margin improved significantly to 11.02% in FY 2024-25 from 3.96% in FY 2023-24 (a 178.06% increase). Net Profit Margin rose to 6.57% from 0.57% (a 1052.63% increase), driven by higher interest income and reduced low-margin trading volumes.

EBITDA Margin

Standalone EBITDA margin was 4.62% in Q1FY24, having declined from 8.42% in FY21 and 5.10% in FY23 due to a higher contribution from low-margin trading activities.

Capital Expenditure

The company realized approximately USD 399 million (approx. INR 3,300 Cr) from the sale of the FSRU 'Vasant-1' by its subsidiary Triumph Offshore Pvt. Ltd. to manage liquidity and debt.

Credit Rating & Borrowing

Acuité reaffirmed a long-term rating of 'ACUITE BBB-' and short-term rating of 'ACUITE A3' in October 2023, which was subsequently withdrawn in June 2024 following a 'No Dues Certificate' from lenders.

⚙️ Operational Drivers

Raw Materials

Petroleum products for trading, Liquefied Natural Gas (LNG) for regasification, and textile fabrics/yarn for the textile division.

Import Sources

Global markets for petroleum trading; domestic sourcing for textile operations; LNG sourcing linked to global supply chains.

Key Suppliers

Not specifically named, but involves a global network of suppliers and buyers for the petroleum value chain and trading operations.

Capacity Expansion

The Jafrabad LNG port facility has a planned regasification capacity of 5 MMTPA. The shipyard division (SDHI) is scaling up with 400+ in-house and 600+ vendor personnel.

Raw Material Costs

Trading goods costs are the primary expense; a reduction in trading revenue led to a 67.44% improvement in inventory turnover and higher overall margins as the business mix shifted.

Manufacturing Efficiency

Inventory turnover ratio decreased 67.44% to 1.13 in FY25 from 3.47 in FY24, reflecting a strategic shift away from high-volume, low-margin trading of goods.

Logistics & Distribution

Distribution is managed through a global network for trading and the 'One Nation, One Grid' policy for gas infrastructure.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth is driven by the operationalization of the 5 MMTPA LNG terminal, expansion into Defense and Heavy Industries (SDHI) for shipbuilding and repairs, and capitalizing on the 'One Nation, One Grid' policy. The sale of the FSRU for USD 399 million provides liquidity for these capital-intensive expansions.

Products & Services

LNG regasification services, petroleum products, textile fabrics, real estate developments, and shipbuilding/repair services (including LPG/LNG tankers and rigs).

Brand Portfolio

Swan Energy, Veritas (India) Limited, Swan LNG, Swan Defence and Heavy Industries (SDHI).

New Products/Services

Expansion into Defense & Shipyard (SDHI) for building and repairing chemical tankers and passenger cruises; habitation development for manpower at Pipavav.

Market Expansion

Targeting the Indian energy deficit through LNG infrastructure and the defense sector via the acquisition of shipyard assets.

Market Share & Ranking

Positioned as a key player in the private LNG terminal space in India with a 5 MMTPA capacity.

Strategic Alliances

Subsidiaries include Veritas (India) Limited (55.01%), Swan LNG (100%), and Swan Defence and Heavy Industries (63%).

🌍 External Factors

Industry Trends

The industry is shifting toward 'One Nation, One Grid' and green energy; India's gas demand-supply gap makes RLNG infrastructure a critical growth area.

Competitive Landscape

Competes with major PSU and private energy players in the LNG and petroleum trading space.

Competitive Moat

Moat is built on high-entry-barrier energy infrastructure (LNG terminals) and specialized shipyard capabilities; sustainability is supported by long-term tolling contracts.

Macro Economic Sensitivity

Highly sensitive to India's GDP growth and energy demand; benefited from the Interim Union Budget 2024-25 investments in gas infrastructure.

Consumer Behavior

Rising domestic consumption of energy and industrial demand for natural gas are driving the shift toward LNG.

Geopolitical Risks

Geopolitical conflicts and protectionism are cited as headwinds that could disrupt global petroleum supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Operations governed by the Companies Act 2013, SEBI Listing Regulations, and Petroleum/Natural Gas regulatory frameworks.

Environmental Compliance

Focus on 'Green Hydrogen Mission' and cleaner energy future through LNG terminal investments.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 26% (INR 317.61 lakhs tax on INR 1,223.10 lakhs PBT).

Legal Contingencies

No reported frauds; no applications or proceedings pending under the Insolvency and Bankruptcy Code (IBC) as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Implementation risk for the LNG project which has faced multi-year delays; volatility in the low-margin trading business which previously caused margin deterioration.