RattanIndia Power Faces Financial Challenges Amid Mixed Performance Metrics and Stock Fluctuations

RattanIndia Power has recently undergone a financial trend adjustment, reflecting challenges in its performance metrics for the quarter ending June 2025. The company's financial score has notably declined, indicating a shift in its operational effectiveness.
On a positive note, the company reported a higher profit after tax (PAT) for the nine-month period, amounting to Rs 117.16 crore. However, the quarterly PAT has shown significant deterioration, falling to Rs -13.11 crore, which marks a stark decline compared to the previous four-quarter average.

Several key performance indicators have also raised concerns. The inventory turnover ratio is at its lowest, recorded at 12.47 times, while the operating profit to interest ratio stands at just 0.65 times, the lowest in recent quarters. Additionally, the interest expense has surged to Rs 148.18 crore, further straining financial health. The operating profit to net sales ratio is also concerning, at only 11.76%, and the earnings per share for the quarter is at Rs -0.02.

In terms of market performance, RattanIndia Power's stock has experienced fluctuations, with a notable return comparison against the Sensex. Over the past week, the stock has declined by 6.42%, while it has shown a modest gain of 6.18% over the past month. Year-to-date, the stock has returned 5.48%, slightly trailing the Sensex's 5.87%. However, over a three-year and five-year horizon, the company has significantly outperformed the Sensex, with returns of 267.18% and 530.13%, respectively.