Are Anupam Finserv Ltd latest results good or bad?

Anupam Finserv Ltd's latest financial results for the quarter ended September 2025 reveal significant operational momentum, highlighted by a net profit of ₹0.90 crores, which marks a substantial increase compared to the previous quarter and the same quarter last year. The company achieved a remarkable revenue growth of 81.63% year-on-year, alongside a sequential net sales increase of 53.45% to ₹1.78 crores. This growth trajectory is complemented by a notable expansion in operating margins, which improved to 74.16%, reflecting effective cost management and operational leverage. The profit before tax also surged to ₹1.19 crores, indicating strong profitability dynamics. The company's ability to convert revenue into profit is further illustrated by the profit after tax margin rising to 50.56%. The quality of earnings appears robust, as the company has shown minimal reliance on other income, with core operations driving profitability. However, despite these positive indicators, Anupam Finserv faces challenges regarding long-term profitability metrics. The average return on equity (ROE) stands at 6.38%, which is below industry standards, raising concerns about capital efficiency. The return on capital employed (ROCE) is also low at 2.71%, suggesting that the company may struggle to generate adequate returns from its capital base. Additionally, the company's valuation appears stretched, trading at a price-to-earnings ratio significantly above the industry average, which may not be justified given its profitability metrics. The absence of institutional interest, with no foreign institutional investors or mutual funds holding shares, indicates a lack of confidence from sophisticated investors. Overall, while Anupam Finserv Ltd has demonstrated strong quarterly performance, the underlying structural weaknesses in profitability and valuation metrics warrant careful consideration. The company has seen an adjustment in its evaluation, reflecting these complexities in its financial profile.