Are HEC Infra Projects Ltd latest results good or bad?

HEC Infra Projects Ltd has reported notable financial results for the quarter ended December 2025, highlighting a significant increase in both revenue and net profit compared to the same quarter last year. The company achieved a revenue of ₹57.35 crores, reflecting a year-on-year growth of 108.24%, which is a substantial improvement from the previous year's growth of 61.15%. This growth is indicative of the company's expanding order book and effective market penetration in its operational segments, particularly in electro-mechanical and solar EPC projects. Net profit for the same quarter reached ₹2.92 crores, marking a remarkable year-on-year increase of 104.20%, compared to a loss in the prior year. This positive trend in profitability suggests that the company is effectively managing its costs despite challenges, although the operating margin has experienced compression, decreasing from 9.55% to 8.54% year-on-year. This margin compression raises questions about the sustainability of profitability as the company scales its operations. Additionally, the company has faced rising interest costs, which surged by 60.92% year-on-year, reflecting increased working capital needs associated with its growth strategy. The interest coverage ratio indicates limited financial flexibility, which could pose risks in adverse conditions. Overall, while HEC Infra Projects Ltd has demonstrated strong revenue and profit growth, the underlying operational challenges, particularly regarding margin pressures and elevated interest costs, warrant careful monitoring. The company has seen an adjustment in its evaluation, reflecting the mixed operational trends. Investors should remain vigilant about the sustainability of these growth metrics and the company's ability to manage its financial health moving forward.