Swan Defence and Heavy Industries Limited – Full and Final Repayment to Creditors

Date: 27 March 2026

Key Announcement

• The company has completed full and final repayment to all members of the Committee of Creditors (CoC).
• This repayment is in line with the Resolution Plan approved by the NCLT on 23 December 2022.
• The disclosure satisfies Regulation 30 of the SEBI (LODR) Regulations, 2015.

Financial Implications

• Debt Elimination: All liabilities to the CoC are cleared, removing a major source of financial stress.
• Improved Liquidity: Cash outflows for interest and principal repayments to the CoC cease, enhancing free cash flow.
• Balance‑Sheet Strengthening: Debt‑to‑equity and leverage ratios are expected to improve markedly.

Strategic Significance

• Exit from Insolvency Process: The company is now free from the oversight of the insolvency framework, allowing greater strategic flexibility.
• Focus on Core Operations: Management can redirect attention and resources toward defence contracts, shipbuilding, and heavy‑industry projects.
• Potential for New Funding: With a cleaner balance sheet, the firm may access cheaper financing for expansion or R&D.

Regulatory & Compliance

• The announcement complies with SEBI (LODR) Regulations, 2015, ensuring transparency to market participants.
• No further regulatory actions are anticipated related to the insolvency case.

Outlook & Risks

• Opportunities: Ability to pursue larger defence contracts, potential partnerships, and capital investments.
• Risks: Market competition, execution of new projects, and macro‑economic factors affecting defence spending.
• Forward Guidance: While no specific financial forecasts were provided, the removal of CoC liabilities is expected to support a more optimistic earnings outlook.

Investors should monitor upcoming quarterly results for evidence of improved profitability and any announcements regarding new contracts or capital allocation plans.