SPML Infra Faces Financial Challenges Amid Declining Sales and High Debt Levels

SPML Infra, a small-cap player in the construction industry, has recently experienced an adjustment in its evaluation. This revision reflects underlying trends that have emerged in the company's financial metrics and market position.
The company reported a significant decline in net sales for the quarter ending June 2025, with figures dropping to Rs 155.91 crore, marking a decrease of 24.59%. Additionally, the profit before tax (PBT) less other income fell sharply, indicating challenges in maintaining profitability. The operating profit to interest ratio reached its lowest point at 0.78 times, suggesting difficulties in covering interest obligations.

Over the past five years, SPML Infra has faced a contraction in net sales and operating profit, with annual growth rates of -12.53% and -8.55%, respectively. The company's high debt levels, reflected in a debt-to-equity ratio averaging 3.72 times, raise concerns about its long-term financial stability. Furthermore, 27.11% of promoter shares are pledged, which can exert additional pressure on stock performance in a declining market.

Despite these challenges, SPML Infra's stock has shown resilience over longer periods, with a remarkable return of 601.13% over three years. However, the recent evaluation adjustment underscores the need for careful consideration of the company's financial health and market dynamics.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.