Company Overview
Swan Defence and Heavy Industries Limited (formerly Reliance Naval and Engineering Limited) reported significant financial and operational developments for FY26, marked by substantial losses but successful restructuring progress.
Financial Performance
Standalone Results:
- Revenue from operations: ₹2,821.387 crore (Previous year: ₹70.346 crore)
- EBITDA: (₹1,519.223) crore (Previous year: (₹974.531) crore)
- Net loss: (₹2,275.097) crore (Previous year: (₹1,814.930) crore)
- Accumulated losses reached ₹25,154.97 crore
Balance Sheet Position:
- Total Assets: ₹31,671.93 crore
- Property, Plant & Equipment: ₹11,375.07 crore
- Cash & Cash Equivalents: ₹184.02 crore
- Borrowings: ₹2,725.06 crore (including ₹1,710.65 crore unsecured loans from Hazel Infra Limited)
Operational Highlights
The company secured major contracts including:
- USD 227 million contract from Rederiet Stenersen AS, Norway for 6 chemical tankers
- Order for 4 dual-fuel ammonia bulk carriers from Energy ONE Limited
- Defence export order from Government of Sultanate of Oman for naval training vessel
- Executed multiple ship repair and refit projects
Corporate Restructuring & Resolution
Successfully concluded Corporate Insolvency Resolution Process by prepaying all outstanding Committee of Creditors' obligations of ₹1,144 crore ahead of schedule, receiving a prepayment discount of ₹123.51 crore. All charges with MCA are in process of being satisfied/modified.
Capital Structure & Ownership
- Equity share capital: ₹52.68 crore (52,682,150 shares)
- Hazel Infra Limited holds 89.9% stake (reduced from 94.91% via Offer for Sale)
- Public shareholding increased to 10.10%, with commitment to achieve 25% MPS
- Received interest-free unsecured loans of ₹610.96 crore from Hazel Infra Limited
Amalgamation Scheme
Board approved Scheme of Arrangement with Triumph Offshore Private Limited, filed with NCLT Ahmedabad on March 27, 2026. NCLT order received on April 13, 2026, with EGM held on May 25, 2026 where shareholders approved the scheme.
AGM Agenda (September 2, 2026)
Ordinary Business: Adoption of financial statements and re-appointment of directors
Special Business:
- Fund raising of up to ₹4,000 crore through various instruments
- Approval of material related party transactions with Hazel Infra Limited (up to ₹30,000 crore), Swan Corp Limited (up to ₹46,000 crore), and Triumph Offshore Private Limited (up to ₹30,000 crore)
- Approvals under Sections 185 and 186 of Companies Act
Outlook & Challenges
Despite significant losses, the company continues operations as a going concern with support from promoters. Major refurbishment/restoration drive ongoing with ₹165.93 crore capitalized as work-in-progress. No deferred tax assets recognized due to uncertainty of future taxable income.