Are 3M India latest results good or bad?

3M India's latest financial results for Q2 FY26 reflect a strong operational performance, showcasing significant growth in both revenue and net profit. The company reported net sales of ₹1,266.49 crores, marking a year-on-year growth of 21.85%, which is a notable increase compared to ₹1,039.52 crores in Q2 FY25. This quarter also represents the highest revenue recorded in the company's history, surpassing previous peaks.
Net profit for the same quarter reached ₹191.34 crores, indicating a year-on-year growth of 30.98% from ₹146.11 crores in Q2 FY25. This performance highlights the company's effective cost management and operational efficiency, as evidenced by an operating margin improvement to 19.63%, up from 16.48% in the previous year.

The company's return on equity (ROE) stands at 28.48%, reflecting strong capital efficiency, and it maintains a robust balance sheet with zero long-term debt, positioning it well for future growth. The recent results have led to an adjustment in the company's evaluation, acknowledging its solid fundamentals despite the premium valuation metrics.

Overall, 3M India's financial performance in Q2 FY26 demonstrates a decisive upward trend in both revenue and profitability, underpinned by effective operational strategies and a strong market position. However, the elevated valuation levels warrant careful consideration moving forward.