Are B2B Soft.Tech. latest results good or bad?

B2B Software Technologies has reported its financial results for the quarter ended September 2025, highlighting a mix of strong revenue growth alongside challenges in profitability. The company achieved net sales of ₹7.66 crores, reflecting a year-on-year growth of 23.15%, which is an improvement from the previous year's performance. This marks the highest quarterly revenue in the company's history, indicating robust demand for its Microsoft Dynamics consulting services.
However, while the revenue figures are promising, the net profit for the quarter stood at ₹0.63 crores, which, despite showing a significant year-on-year growth of 103.23%, represents a slight decline of 3.08% compared to the previous quarter. This discrepancy between revenue growth and profit performance raises concerns about the company's cost management, particularly regarding employee expenses, which have increased and now consume a substantial portion of net sales.

Operating margins, excluding other income, improved to 9.01%, up from 4.33% in the prior quarter, indicating some operational achievement. However, the profit after tax (PAT) margin contracted to 8.22% from 10.05% in the previous quarter, primarily due to a rise in tax outflows. The reliance on non-operating income also remains a concern, as it accounted for a significant portion of profit before tax, suggesting that the core business may not be generating sufficient cash returns relative to its asset base.

Overall, B2B Software Technologies is navigating a competitive landscape with notable revenue growth, yet it faces ongoing challenges in translating that growth into sustainable profitability. The company saw an adjustment in its evaluation, reflecting the complexities of its operational performance amidst these financial results.