Are Aurum Proptech latest results good or bad?

Aurum Proptech's latest financial results for Q2 FY26 indicate a notable operational turnaround, highlighted by a significant year-on-year increase in net sales of ₹82.50 crores, reflecting a growth of 28.99%. This marks the company's strongest annual revenue expansion since Q2 FY24. Additionally, the quarter-on-quarter revenue growth of 20.61% showcases a robust acceleration in business momentum, driven by enhanced client engagement and successful project execution in its core real estate technology solutions segment.
The operating margin also saw a substantial improvement, rising to 25.76%, up 870 basis points from the previous year, which underscores the company's ability to leverage its fixed cost base effectively while maintaining disciplined cost control. Operating profit before depreciation, interest, and tax (PBDIT excluding other income) reached ₹21.25 crores, the highest recorded in the available data series, indicating strong operational leverage.

However, despite these positive indicators, Aurum Proptech reported a consolidated net loss of ₹8.56 crores for the quarter, although this represents a narrowing of 10.37% compared to the same period last year. The persistent losses are primarily attributed to high depreciation charges and interest expenses, which continue to consume the operating profit.

The company's cash flow profile showed some improvement, with operating cash flow turning positive at ₹27 crores for FY25, yet concerns remain regarding the sustainability of this trend, as it was largely driven by working capital adjustments rather than core profitability. The balance sheet reflects mixed signals, with total shareholder funds providing a reasonable equity cushion, but accumulated losses are eroding reserves.

In summary, while Aurum Proptech's Q2 FY26 results demonstrate encouraging operational improvements, the path to sustainable profitability is challenged by ongoing net losses and significant fixed costs related to depreciation and interest. The company experienced an adjustment in its evaluation, reflecting the complexities of its financial landscape and operational performance.