Are Anupam Finserv Ltd latest results good or bad?

Anupam Finserv Ltd's latest financial results for Q3 FY26 reflect a company experiencing significant operational fluctuations while maintaining a positive trajectory over the longer term. In this quarter, net sales amounted to ₹1.25 crores, which represents a notable decline of 29.78% compared to the previous quarter, yet shows a year-on-year growth of 20.19% from ₹1.04 crores in Q3 FY25. This volatility in revenue has directly impacted net profit, which fell to ₹0.40 crores, down 55.56% quarter-on-quarter, but surged 166.67% year-on-year. The company's profitability metrics indicate a similar pattern of volatility. The PAT margin for Q3 FY26 was reported at 32.00%, a decrease from 50.56% in Q2 FY26, although this remains significantly higher than the 14.42% recorded in Q3 FY25. The operating margin also saw a decline to 50.40% from an exceptional 74.16% in the previous quarter, yet it reflects a substantial improvement from 21.15% in the year-ago quarter. Despite the quarter-on-quarter declines, the nine-month performance ending December 2025 shows total revenues of ₹4.19 crores, a 42.52% increase compared to the same period last year, and cumulative net profit of ₹1.64 crores, representing a 241.67% growth year-on-year. This suggests that while quarterly results exhibit volatility, the underlying business performance is on an upward trend over a longer timeframe. The company's balance sheet remains conservative, with zero long-term debt and a debt-to-equity ratio of 0.11, providing financial stability. However, the return on equity (ROE) of 4.95% and return on capital employed (ROCE) of 2.71% indicate challenges in capital efficiency, which may raise concerns about long-term value creation. Overall, Anupam Finserv's financial results highlight a mix of short-term volatility and long-term growth potential, alongside structural concerns regarding capital efficiency. The company has seen an adjustment in its evaluation, reflecting these dynamics in its financial performance.