Are Hariyana Ship Breakers Ltd latest results good or bad?

The latest financial results for Hariyana Ship Breakers Ltd reveal a complex operational landscape. In the quarter ended December 2025, the company reported net sales of ₹2.20 crores, reflecting a quarter-on-quarter growth of 69.23% from ₹1.30 crores in the previous quarter. However, this figure is notably low, especially considering the company's historical performance, having recorded zero sales in the same quarter of the previous year. This minimal revenue base raises concerns about the sustainability of the company's core operations, which have effectively become dormant. On the profit side, Hariyana Ship Breakers reported a consolidated net profit of ₹6.82 crores, a significant quarter-on-quarter increase of 203.11% from ₹2.25 crores. While this appears positive, it is essential to note that a substantial portion of this profit—88.65% of profit before tax—was derived from other income, which has raised critical questions about the quality and sustainability of the earnings. The operating profit margin, excluding other income, stood at 81.82%, up from 66.92% in the prior quarter, indicating improved margins but based on a very low revenue figure. The company's operational challenges are underscored by its historical performance, with a staggering decline in sales over the past few years, leading to a cumulative sales figure of just ₹3.50 crores for the first nine months of FY26. This represents a drastic drop from ₹148 crores achieved in FY24, highlighting the significant operational issues the company faces. In terms of evaluation, the company saw an adjustment in its evaluation, reflecting the ongoing concerns regarding its operational viability and financial health. The balance sheet indicates a strong shareholder fund position, but the heavy reliance on non-operating income for profitability raises red flags for potential investors. Overall, while there are some positive trends in terms of profit growth and operating margins, the underlying operational performance of Hariyana Ship Breakers Ltd remains a significant concern, with minimal sales and a heavy dependence on other income. The company’s future trajectory will depend on its ability to revive its core ship-breaking operations or develop a viable alternative business strategy.