Are Automobile Corporation Of Goa Ltd latest results good or bad?

The latest financial results for Automobile Corporation Of Goa Ltd for the quarter ended December 2025 reveal a complex operational landscape. The company reported a net profit of ₹10.86 crores, reflecting a significant year-on-year growth of 140.80%. However, this represents a sequential decline of 25.82% from the previous quarter, indicating challenges in maintaining profitability on a quarter-to-quarter basis.
Revenue for the same quarter reached ₹198.67 crores, which is an impressive increase of 81.20% compared to the same period last year. Nevertheless, there was a slight sequential decrease of 3.05% from ₹204.93 crores in the prior quarter, suggesting some normalization following a stronger performance in the previous quarter.

The operating margin for Q3 FY26 was recorded at 8.02%, down from 8.32% in the previous quarter, which highlights a compression in margins amid rising operational costs. Despite this, the margin remains higher than the 4.11% reported in Q3 FY25, indicating an overall positive trend year-on-year.

The nine-month performance for FY26 shows net sales of ₹652.01 crores, up 69.01% from ₹385.85 crores in the same period last year, and a net profit of ₹48.57 crores, which is a substantial increase of 135.86% compared to the prior year. This strong annual trajectory underscores the company's ability to leverage favorable market conditions, even as quarterly performance shows signs of moderation.

The company has experienced an adjustment in its evaluation, reflecting the mixed operational trends observed in the latest financial results. The absence of long-term debt and a stable promoter holding structure provide a foundation for financial health, but the sequential declines in profit and revenue raise questions about sustainability in the near term. Overall, while the company has demonstrated robust annual growth, the recent quarterly results indicate potential challenges that warrant close monitoring.