Are ASM Technologies Ltd latest results good or bad?

ASM Technologies Ltd's latest financial results for Q3 FY26 reveal a complex performance landscape characterized by significant year-on-year growth juxtaposed with notable sequential declines. The company reported a net profit of ₹9.31 crore, reflecting a 79.38% increase compared to the same quarter last year, while revenue surged by 79.21% to ₹116.02 crore on a year-on-year basis. However, when viewed on a quarter-on-quarter basis, both net profit and revenue experienced substantial contractions of 51.31% and 24.89%, respectively.
The operating margin, excluding other income, fell to 16.89%, down from 19.73% in the previous quarter, indicating a compression of 284 basis points. Similarly, the PAT margin decreased to 8.02%, down 436 basis points from the prior quarter. This margin compression raises concerns about the company's pricing power and operational efficiency amidst a backdrop of recent volatility in its stock performance.

Despite the impressive annual growth rates, the recent quarterly results have prompted questions regarding the sustainability of this growth trajectory. The sharp declines in both revenue and profit suggest potential execution challenges that the company may need to address moving forward.

Additionally, the company's overall evaluation has seen an adjustment, reflecting the mixed signals from its financial performance. While the long-term growth story remains compelling, the recent quarterly volatility and elevated valuation metrics introduce a degree of caution for stakeholders.

In summary, ASM Technologies Ltd's Q3 FY26 results highlight a divergence between robust year-on-year growth and concerning sequential performance, necessitating careful monitoring of future operational trends and market conditions.