Are Aditya Vision latest results good or bad?

Aditya Vision's latest financial results for the quarter ending September 2025 reflect a complex operational landscape. The company reported a net profit of ₹12.72 crores, marking a year-on-year growth of 4.18%. This growth, however, is significantly lower compared to the previous year's increase of 26.79%, indicating a moderation in profit expansion.
Revenue for the quarter reached ₹457.50 crores, which represents a robust year-on-year growth of 21.72%, up from ₹375.85 crores in the same quarter last year. This growth demonstrates the company's ability to capture market share in Bihar's consumer electronics sector, despite a notable sequential decline of 51.34% from the previous quarter's exceptional revenue of ₹940.23 crores. The seasonal nature of the business, particularly the lull between the summer rush and the festive season, contributes to this fluctuation.

Operating profit before depreciation, interest, tax, and other income (PBDIT) stood at ₹34.68 crores, yielding an operating margin of 7.58%. This margin reflects a contraction of 42 basis points from the previous year, suggesting increased competitive pressures or strategic investments impacting profitability. The profit after tax margin also saw a decline to 2.78% from 3.25% year-on-year, highlighting the challenges faced in maintaining margins amidst rising costs, particularly interest expenses, which surged by 77.34% year-on-year.

Despite these pressures, Aditya Vision's return on equity remains strong at 37.70%, underscoring its operational efficiency and ability to generate profits relative to shareholder equity. The company's five-year average return on capital employed (ROCE) of 28.93% further reinforces its position as a competent capital allocator.

In summary, while Aditya Vision demonstrated resilience with significant revenue growth during a traditionally weak quarter, the pressures on margins and profit growth indicate a need for careful monitoring. The company has experienced an adjustment in its evaluation, reflecting the nuanced performance metrics observed in this latest reporting period.