Are Arihant Academy Ltd latest results good or bad?

Arihant Academy Ltd's latest financial results for the quarter ended December 2025 reflect a complex operational landscape. The company reported consolidated net profit of ₹1.77 crore, which represents a year-on-year growth of 51.28%, although it shows a decline of 13.66% compared to the previous quarter. Similarly, net sales reached ₹13.95 crore, marking a significant year-on-year increase of 42.49%, but also a sequential drop of 12.32% from the prior quarter. The financial performance indicates that while Arihant Academy has maintained strong year-on-year growth, the quarter-to-quarter results exhibit typical seasonal fluctuations characteristic of the education services sector. The company's profitability metrics remain robust, with a PAT margin of 12.97%, up from 11.64% in the same quarter last year, suggesting operational efficiency despite competitive pressures. Additionally, the company has demonstrated strong capital efficiency, with a return on equity (ROE) of 21.10%. The absence of long-term debt and a clean balance sheet further underline its financial stability. However, the recent results have led to an adjustment in the company's evaluation, reflecting the market's perception of its valuation relative to its operational performance. Overall, Arihant Academy's results highlight its ability to navigate seasonal variations while achieving significant year-on-year growth, although recent quarterly performance indicates challenges that may warrant closer monitoring.