Are All E Tech latest results good or bad?

All E Technologies' latest financial results for Q2 FY26 present a complex picture of profitability amidst declining revenue. The company reported a net profit of ₹7.38 crores, reflecting a sequential increase of 16.77% from the previous quarter, primarily driven by a significant rise in other income, which now accounts for a notable portion of profit before tax. However, this growth raises concerns regarding the sustainability and quality of earnings, as core operating revenue fell to ₹33.35 crores, marking a decline of 2.11% quarter-on-quarter and 7.13% year-on-year.
The operating margin, excluding other income, improved to 20.06%, up from 19.20% in the prior quarter, yet remains below the levels achieved in previous quarters. This suggests some operational efficiency gains, but the overall revenue trajectory is troubling, as the current sales figures represent the lowest quarterly revenue in recent periods. The company's half-year revenue performance shows only a slight increase compared to the same period last year, indicating a significant slowdown from its historical growth rates.

The financial results also highlight a strong return on equity of 20.44%, indicating effective capital utilization, but the heavy reliance on non-operating income for profit growth raises questions about the underlying business model. The company's evaluation has seen an adjustment, reflecting the mixed operational trends observed in the latest results.

In summary, All E Technologies faces challenges with stagnating revenue growth and an increasing dependence on non-core income, despite some improvements in profitability metrics. The upcoming quarters will be crucial for the company to demonstrate a sustainable path forward and regain investor confidence.