Jaiprakash Associates Limited Stock Analysis

Name: Jaiprakash Associates Limited (JPASSOCIAT) Stock Analysis
Brand: NSE India
Rating: 1.5 (1 reviews)

JPASSOCIAT NSE India

Jaiprakash Associates Limited (JPASSOCIAT) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

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Jaiprakash Associates is in severe financial distress with negative equity of Rs. 8,534.46 crores and a debt-to-equity ratio of -10.65x, currently undergoing Corporate Insolvency Resolution Process (CIRP). Q3 FY2025-26 revenue declined 5.38% YoY to Rs. 72,476 lakhs while the company posted a net loss of Rs. 30,533 lakhs with deeply negative EBITDA margin of -26.72% and operating margin of -11.25%. The auditor has issued a 'Disclaimer of Conclusion' opinion, and the company faces material uncertainty about its ability to continue as a going concern, with total liabilities of Rs. 37,927.94 crores against total assets of Rs. 35,071.74 crores. Interest coverage and debt service coverage ratios stand at zero, indicating complete inability to service debt obligations.

Based on: Jaiprakash Associates Limited - Financial Results (14/2/2026) (Feb 14, 2026)

+ Key Strengths

Construction segment remains operational generating Rs. 51,781 lakhs in Q3 FY2025-26, representing 71.4% of total revenue and demonstrating some revenue-generating capability despite insolvency proceedings

Hotel/Hospitality & Golf segment contributed Rs. 13,151 lakhs in revenue showing operational continuity in this business vertical during the quarter

Current ratio of 1.61x indicates short-term liquidity buffer, suggesting the company can meet immediate current liabilities from current assets

Adani Enterprises Limited's resolution plan has been approved by the Committee of Creditors and submitted to NCLT for approval, providing a potential path out of insolvency

- Key Risks

Negative equity of Rs. 8,534.46 crores with debt-to-equity ratio of -10.65x represents complete balance sheet insolvency, and auditors have issued a 'Disclaimer of Conclusion' opinion citing material uncertainty about going concern

YEIDA land cancellation affecting 1,085 hectares upheld by Allahabad High Court is under Supreme Court appeal, threatening a major asset base in the Real Estate segment which holds Rs. 20,957.68 crores in segment assets

Trade receivables of Rs. 2,415.33 crores are under arbitration/litigation with uncertain recovery prospects, while impaired investments in subsidiaries JCCL and BJCL total Rs. 3,100.08 crores indicating significant asset quality deterioration

Competition Commission of India penalties totaling Rs. 1,361.62 crores are under appeal, adding to contingent liabilities alongside ongoing investigations by ED, EOW, SFIO, and CBI

Inventory turnover of just 0.03x and receivables turnover of 0.22x indicate severely impaired operational efficiency and working capital blockages

High finance costs of Rs. 23,771 lakhs in Q3 alone with zero interest coverage ratio demonstrate complete inability to service debt from operations, while cumulative losses reached Rs. 163,072 lakhs for the nine-month period

Forward Outlook

The company's entire future hinges on NCLT Allahabad's approval of Adani Enterprises Limited's resolution plan, with several impleadment applications currently pending adjudication that could delay or derail the process. No new strategic initiatives, capacity expansions, or growth projects were announced during Q3 FY2025-26, as the Resolution Professional continues managing operations purely on a going concern basis during insolvency proceedings. Post-resolution, the company anticipates significant accounting adjustments as creditor claims differ materially from book amounts, which will further reshape the balance sheet. Revenue momentum is negative with 5.38% YoY decline in Q3 and operational metrics showing continued deterioration across inventory turnover, receivables collection, and margin performance. Until resolution plan approval and implementation, the company remains in financial limbo with no visibility on capital structure, ownership, or strategic direction for the next 2-4 quarters.

All Scores

Date	Report	Score	Sentiment	AI
Feb 27, 2026	Jaiprakash Associates Limited - Financial Results (14/2/2026)	1.5	Strong Sell	Claude
Jaiprakash Associates is in severe financial distress with negative equity of Rs. 8,534.46 crores and a debt-to-equity ratio of -10.65x, currently undergoing Corporate Insolvency Resolution Process (CIRP). Q3 FY2025-26 revenue declined 5.38% YoY to Rs. 72,476 lakhs while the company posted a net loss of Rs. 30,533 lakhs with deeply negative EBITDA margin of -26.72% and operating margin of -11.25%. The auditor has issued a 'Disclaimer of Conclusion' opinion, and the company faces material uncertainty about its ability to continue as a going concern, with total liabilities of Rs. 37,927.94 crores against total assets of Rs. 35,071.74 crores. Interest coverage and debt service coverage ratios stand at zero, indicating complete inability to service debt obligations. STRENGTHS: Construction segment remains operational generating Rs. 51,781 lakhs in Q3 FY2025-26, representing 71.4% of total revenue and demonstrating some revenue-generating capability despite insolvency proceedings / Hotel/Hospitality & Golf segment contributed Rs. 13,151 lakhs in revenue showing operational continuity in this business vertical during the quarter / Current ratio of 1.61x indicates short-term liquidity buffer, suggesting the company can meet immediate current liabilities from current assets / Adani Enterprises Limited's resolution plan has been approved by the Committee of Creditors and submitted to NCLT for approval, providing a potential path out of insolvency RISKS: Negative equity of Rs. 8,534.46 crores with debt-to-equity ratio of -10.65x represents complete balance sheet insolvency, and auditors have issued a 'Disclaimer of Conclusion' opinion citing material uncertainty about going concern / YEIDA land cancellation affecting 1,085 hectares upheld by Allahabad High Court is under Supreme Court appeal, threatening a major asset base in the Real Estate segment which holds Rs. 20,957.68 crores in segment assets / Trade receivables of Rs. 2,415.33 crores are under arbitration/litigation with uncertain recovery prospects, while impaired investments in subsidiaries JCCL and BJCL total Rs. 3,100.08 crores indicating significant asset quality deterioration / Competition Commission of India penalties totaling Rs. 1,361.62 crores are under appeal, adding to contingent liabilities alongside ongoing investigations by ED, EOW, SFIO, and CBI / Inventory turnover of just 0.03x and receivables turnover of 0.22x indicate severely impaired operational efficiency and working capital blockages / High finance costs of Rs. 23,771 lakhs in Q3 alone with zero interest coverage ratio demonstrate complete inability to service debt from operations, while cumulative losses reached Rs. 163,072 lakhs for the nine-month period

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.