Are Anuh Pharma Ltd latest results good or bad?

Anuh Pharma Ltd's latest financial results present a complex picture of growth alongside notable challenges. For the nine-month period of FY26, the company reported revenue of ₹569.54 crore, reflecting a year-on-year growth of 22.91%, indicating strong topline expansion. Additionally, the net profit for Q3 FY26 reached ₹13.45 crore, marking the highest quarterly profit to date. This suggests a positive trend in absolute earnings. However, the financial data also highlights significant concerns regarding profitability. The company's operating margin has experienced compression, with the operating profit margin declining from 11.6% in FY24 to 9.2% in FY25. This decline raises questions about the sustainability of profit margins amidst rising operational costs and competitive pressures. Furthermore, the Return on Capital Employed (ROCE) for H1 FY26 fell to 15.90%, the lowest in the tracked period, while the Return on Equity (ROE) averaged 14.83%, which is below industry expectations. The company's balance sheet remains strong, with zero long-term debt and a net cash position, providing financial flexibility. However, there are concerns about cash flow, as operating cash flow decreased significantly from ₹53 crore in FY2023 to ₹37 crore in FY2025, and cash and cash equivalents dropped to ₹2.15 crore in H1 FY26. Overall, Anuh Pharma's results indicate a robust revenue growth trajectory, but the accompanying margin pressures and declining return ratios present challenges that need to be addressed. The company saw an adjustment in its evaluation, reflecting these mixed operational trends. Investors may need to monitor future performance closely to assess the sustainability of the recent profit growth and the effectiveness of management's strategies to enhance profitability.