Are RattanIndia Pow. latest results good or bad?

RattanIndia Power's latest financial results for Q2 FY26 reflect significant operational challenges. The company reported a net loss of ₹31.55 crores, marking a substantial deterioration compared to previous quarters. Revenue for the quarter fell to ₹653.72 crores, a decline of 20.47% from the preceding quarter and a decrease of 4.21% year-on-year. This revenue contraction is attributed to lower power generation volumes and subdued demand conditions.
Operating profit before depreciation, interest, tax, and other income (PBDIT) dropped to ₹51.70 crores, resulting in an operating margin of 7.91%, which is the lowest in recent quarters and down from 11.76% in the previous quarter. The company's interest expenses, although lower than the previous quarter, remain high at ₹112.08 crores, leading to a concerning interest coverage ratio of 0.46 times, indicating challenges in servicing its debt obligations.

Additionally, the most notable event during this quarter was the drastic reduction in promoter shareholding from 88.65% to 44.06%, raising questions about the company's governance and strategic direction. This shift occurred alongside deteriorating financial metrics across various operational parameters, indicating a potential crisis in ownership stability.

Overall, RattanIndia Power's financial performance in Q2 FY26 highlights a period of deepening losses and operational inefficiencies, with the company experiencing a revision in its evaluation. The combination of declining revenues, margin compression, and significant governance changes suggests a critical need for operational improvement and strategic clarity moving forward.