Are Shri Vasuprada Plantations Ltd latest results good or bad?

Shri Vasuprada Plantations Ltd's latest financial results present a complex picture. For the quarter ending December 2025, the company reported a revenue of ₹45.62 crores, reflecting a year-on-year growth of 24.47%. This indicates the company's ability to increase its sales despite the challenging conditions within the tea plantation sector. However, the net profit for the same period was ₹5.13 crores, which represents a significant decline of 43.25% compared to the previous year. The operational metrics reveal deeper concerns. The operating margin fell to 6.38%, down from 8.57% in the prior year, indicating a compression in profitability despite the revenue growth. Additionally, the company's reliance on non-operating income, which constituted a substantial portion of its profit before tax, raises questions about the sustainability of its earnings from core operations. Over the first nine months of FY26, the company achieved a revenue of ₹120.76 crores, marking a 22.94% increase year-on-year. However, the net profit during this period was only ₹0.60 crores, highlighting ongoing challenges in converting revenue into sustainable profits. The return on capital employed (ROCE) was negative, suggesting that the company has struggled to generate adequate returns on its investments. The financial results indicate that while Shri Vasuprada has managed to grow its top line, the underlying operational performance is concerning, with significant margin erosion and a heavy dependency on non-operating income. The company has seen an adjustment in its evaluation, reflecting these operational challenges and the broader difficulties faced in the tea plantation industry.