Are Shipping Corporation of India Ltd latest results good or bad?

The latest financial results for Shipping Corporation of India Ltd (SCI) for Q3 FY26 indicate a significant operational turnaround. The company reported a net profit of ₹404.97 crores, reflecting a substantial year-on-year growth of 436.24%. Additionally, net sales reached ₹1,611.67 crores, which is a 22.50% increase compared to the same period last year. This marks the highest quarterly sales figure in recent periods, showcasing improved freight dynamics and better asset utilization across its fleet. Operating margins also exhibited remarkable improvement, with an operating margin of 42.08%, which is the highest in at least seven quarters, indicating enhanced cost management and pricing power. The profit after tax (PAT) margin stood at 25.13%, significantly up from 5.74% in Q3 FY24, further underscoring the company's operational efficiency. Despite these positive trends, the company faces challenges with rising interest costs, which have increased by 38.14% over the past six months, potentially impacting future profitability. However, SCI maintains a manageable debt profile, with a debt-to-EBITDA ratio of 1.37 times, indicating a strong ability to service its debt obligations. The shareholding pattern shows stable promoter support, with the President of India holding a 63.75% stake, while foreign institutional investors have gradually increased their holdings, reflecting growing confidence in the company's operational trajectory. Overall, SCI's Q3 FY26 results highlight a strong operational performance, marked by significant profit and revenue growth, alongside notable margin expansion. The company has seen an adjustment in its evaluation, reflecting the positive operational trends, though the rising interest burden remains a point of concern for future quarters.