Are Azad Engineering latest results good or bad?

Azad Engineering has reported its financial results for the quarter ending June 2025, showcasing a notable performance. The company achieved its highest quarterly net sales at Rs 137.09 crore, reflecting consistent growth over the last five quarters. The operating profit also reached a peak of Rs 49.23 crore, indicating a strong upward trend in operational efficiency.
In terms of profitability, Profit Before Tax (PBT) was recorded at Rs 33.18 crore, while Profit After Tax (PAT) stood at Rs 29.72 crore, both representing the highest figures in the last five quarters. The PAT demonstrated significant growth of 36.1% compared to the average of the previous four quarters, suggesting a positive trend in profitability. Additionally, Earnings per Share (EPS) reached a high of Rs 4.60.

However, the company is facing challenges, particularly with interest expenses rising to Rs 5.91 crore, marking an increase of 54.71% quarter on quarter, which indicates higher borrowing costs. Furthermore, non-operating income peaked at Rs 8.69 crore, raising questions about its sustainability.

Overall, the financial data indicates that Azad Engineering has seen an adjustment in its evaluation, reflecting the complexities of its operational landscape amidst positive sales and profit trends.