Are Apollo Finvest (India) Ltd latest results good or bad?

Apollo Finvest (India) Ltd's latest financial results for Q2 FY26 reveal a complex operational landscape characterized by declining revenues and fluctuating margins. The company reported net sales of ₹5.12 crores, reflecting a sequential decline of 1.73% from ₹5.21 crores in the previous quarter and a significant year-on-year contraction of 27.68% from ₹7.08 crores in Q2 FY25. This revenue decline is concerning, particularly as it follows a half-yearly performance that saw total sales drop 28.66% compared to the same period last year. Despite the revenue challenges, Apollo Finvest achieved an operating margin of 66.21% in Q2 FY26, which marks a notable improvement from 38.58% in Q1 FY26. However, this margin enhancement raises questions regarding its sustainability, especially given the volatility observed in previous quarters. The PAT margin for the latest quarter was reported at 33.98%, down from 44.34% in the prior quarter, indicating pressure on profitability. The company's net profit for Q2 FY26 was ₹1.74 crores, down 24.68% from the previous quarter and 27.82% year-on-year. In contrast, the standalone net profit showed a slight recovery in the subsequent quarter, with a reported increase of 5.17% to ₹1.83 crores, although this follows a prior decline. Interest costs have also risen, contributing to the financial strain, with a year-on-year increase of 52.17% noted in Q2 FY26. The company's average return on equity stands at 17.63% over the past five years, but the latest figure of 9.10% indicates a significant drop, highlighting the challenges in maintaining profitability. Overall, Apollo Finvest's financial performance reflects a troubling trend of revenue erosion coupled with margin volatility. The company has experienced an adjustment in its evaluation, which underscores the need for careful monitoring of its operational strategies moving forward. The outlook remains cautious as the company seeks to stabilize its revenue and improve its financial health amidst these challenges.