Are Bhakti Gems & Jewellery Ltd latest results good or bad?

The latest financial results for Bhakti Gems & Jewellery Ltd for the quarter ended December 2025 reveal a complex operational landscape characterized by significant revenue volatility and some positive developments in profitability metrics. In Q3 FY26, the company reported net sales of ₹9.96 crores, which reflects a substantial quarter-on-quarter recovery of 144.12% from ₹4.08 crores in Q2 FY26. However, this figure represents a notable year-on-year decline of 75.61% compared to ₹40.84 crores in Q3 FY25. This extreme fluctuation in revenue highlights the company's challenges in maintaining consistent sales, suggesting a business model that may be heavily reliant on project-based revenues rather than stable, recurring income streams. On the profitability front, Bhakti Gems achieved a net profit of ₹0.27 crores, marking a significant increase of 145.45% compared to the previous quarter. This improvement in net profit is noteworthy, especially given the low base from the prior year, where the company reported no profit in Q3 FY25. The operating margin also showed progress, rising to 3.92% from 3.68% in Q2 FY26, indicating some operational discipline despite the revenue challenges. Despite these positive developments in margins, the company faces critical concerns regarding its overall financial health. The substantial year-on-year revenue decline raises questions about the sustainability of its growth trajectory. Additionally, the company has experienced a dramatic reduction in promoter shareholding, which fell from 40.79% to 9.76% in just two quarters, signaling potential governance issues and a loss of confidence from insiders. Overall, while Bhakti Gems & Jewellery Ltd has demonstrated some operational improvements in terms of profitability, the underlying revenue volatility and significant changes in ownership structure present considerable risks. The company has seen an adjustment in its evaluation, reflecting these mixed operational trends and financial performance metrics.