1. At a Glance
Picture this: a company once building India’s largest dams, hotels, expressways, and golf courses — now trading at the price of a cutting chai. That’sJaiprakash Associates Ltd (JAL), the flagship of the Jaypee Group, now knee-deep in debt and under theCorporate Insolvency Resolution Process (CIRP).
As ofQ2 FY26, JAL’s market cap has shrunk to₹773 crore, while its borrowings have ballooned to a Himalayan₹55,933 crore. Itssales for the quarter came in at ₹685 crore, down~50% YoY, whilelosses stood at ₹243 crore. Thestock trades at ₹3.15, down nearly47% in the past year, giving investors a crash course in the “gravity” of financial leverage.
Once a poster boy for India’s infrastructure dreams, JAL now boasts anegative book value (-₹21),ROCE of -2.03%, and anEV/EBITDA of 99x, which is less of a valuation metric and more of a distress signal. And if that wasn’t dramatic enough,Executive Director Manoj Gaur was arrested in November 2025in a money laundering probe linked to Jaypee Infratech.
Now, JAL’s fate hangs in the hands ofAdani Enterprises, whose resolution plan got93.81% approval from creditorsin November 2025. The empire that once built the Tehri Dam now awaits a different kind of flood — of NCLT paperwork.
2. Introduction
Once upon a time in Noida, a group built expressways, luxury hotels, and dams with equal enthusiasm — and borrowed with even greater enthusiasm. That group was Jaypee, and its crown jewel wasJaiprakash Associates Ltd (JAL).
From power plants to five-star hotels, JAL’s diversification looked glorious in PowerPoint slides. But when the music stopped, the company found itself dancing with debtors instead of developers.
In its prime, JAL’s cement plants hummed, hydropower flowed, and golfers teed off at Jaypee Greens. Today, the story reads more like “Golf course se court case tak.” The company’ssales have fallen 40% YoY to ₹3,972 crore, andnet loss widened to ₹1,342 crorein FY25.
It’s not just numbers; it’s a Shakespearean saga of ambition, leverage, and liquidity — sprinkled with NCLT meetings, arrests, and an occasional ray of hope called “resolution plan.”
If you thought watching penny stocks was dull, welcome to the Jaypee Cinematic Universe: where cement, circuits, and creditors all play starring roles.
3. Business Model – WTF Do They Even Do?
At this point, it’s easier to list what JALdoesn’tdo. The company has more verticals than an elevator company —construction, cement, fertilizers, real estate, power, and hotels, to name a few.
- Cement Division:Once the pride of the group, with plants across Rewa, Chunar, Churk, and Bhilai. Total capacity of over8.5 MTPA, most of which is now under sale or debt restructuring.
- Construction:The original business that made Jaypee famous — big civil engineering projects likeTehri,Sardar Sarovar, andKarcham Wangtoodams. The company’s construction order book was once ₹16,000 crore; now, it’s under a pile of insolvency filings.
- Fertilizers:Ironically, the most stable segment, contributing~45% of FY24 revenue, because plants don’t need expressway tolls to function.
- Real Estate:ThroughJaypee Greens, JAL built golf-centric luxury homes — and thousands of angry homebuyers waiting for possession.
- Hospitality:Operates five luxury hotels in Delhi, Agra, Noida, and Mussoorie. Because nothing says “bankruptcy” like room service under CIRP.
So yes, JAL is still operational — but it’s like a Swiss Army knife where half the blades are rusted and the rest are pledged to banks.
4. Financials Overview
Let’s dive into Q2 FY26 results — the latest quarter of chaos:
| Metric (₹ Cr) | Q2 FY26 (Sep’25) | Q2 FY25 (Sep’24) | Q1 FY26 (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 685 | 1,360 | 672 | -49.6% | 1.9% |
| EBITDA | -41 | -34 | -19 | -20.6% | -115.8% |
| PAT | -75 | -298 | 232 | 74.8% | -132.3% |
| EPS (₹) | -0.28 | -1.19 | 0.98 | 76.4% | -128.6% |
Commentary:JAL somehow managed to post an “improvement” in losses YoY (from -₹298 crore to -₹75 crore) — but before you clap, note that the improvement came aftermassive asset salesandone-off income from non-core sources. The operational performance is still a black hole — negative EBITDA, falling sales, and interest costs that could fund a small nation’s budget.
The annualized EPS stands at-₹1.12, and the stock still trades at a P/E that doesn’t exist — because you need earnings for that.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s attempt the impossible — valuing a company under CIRP.
(a) P/E Method:EPS (annualized) = -₹1.12Industry P/E = 19xFair Value = N/A (Negative EPS → P/E method invalid)
(b) EV/EBITDA Method:EV = ₹17,301 CrEBITDA (TTM) = -₹175 Cr→ EV/EBITDA = 99x (mathematically, this screamsdistress).
(c) DCF Method (Simplified):Even with optimistic cash flows of ₹800 Cr/year (based on past 10Y avg) discounted at 12% with zero terminal growth → intrinsic value ≈ ₹0–₹2/share range.
Fair Value Range (Educational): ₹0 – ₹5 per share
Disclaimer: This fair value range is for educational purposes only and not investment advice. Please consult a professional before losing sleep (or money).
6. What’s Cooking – News, Triggers, Drama
This section could easily double as a Netflix script.Here’s the spicy summary ofFY25–FY26:
- CIRP Admission (June 2024):NCLT Allahabad admitted JAL afterICICI Bankdragged it for default.
- Debt:₹55,933 crore owed to 30+ lenders.
- Resolution Plan:Adani Enterprises’ plan approved with 93.81% creditor votein November 2025.
- Arrest:Executive DirectorManoj Gaurarrested in a money laundering probe.
- Divestment:Cement assets worth ₹5,586 crore sold
