Are Orient Green latest results good or bad?

Orient Green Power's latest financial results for Q2 FY26 reveal a complex picture of operational performance. The company reported a net profit of ₹80.92 crores, reflecting a significant quarter-on-quarter growth of 180%, while revenue reached ₹131.01 crores, marking a 49.93% increase from the previous quarter. This revenue figure also represents a year-on-year growth of 7.99%, indicating a recovery from the previous year's stagnation.
The operating margin for the quarter stood at an impressive 76.23%, although this is a decline from the 82.62% margin reported in the same quarter last year. The profit after tax (PAT) margin was notably high at 61.72%, showcasing the company's ability to convert sales into profits effectively.

However, beneath these headline figures lies a more nuanced narrative. The company has experienced a dramatic increase in promoter holding from 3.50% to 99.99%, raising governance concerns due to the complete pledging of shares. Additionally, the company’s return on equity (ROE) remains low at 2.83%, which is significantly below industry standards, suggesting challenges in generating adequate returns for shareholders. Furthermore, the five-year sales growth rate is only 2.27%, indicating difficulties in capitalizing on growth opportunities within the renewable energy sector.

While the recent quarterly performance is strong, the company's overall operational metrics and governance issues present critical challenges that could impact its long-term investment appeal. The company saw an adjustment in its evaluation, reflecting the tension between short-term operational successes and ongoing structural weaknesses.