Are Cartrade Tech Ltd latest results good or bad?

Cartrade Tech Ltd's latest financial results reflect a complex operational landscape. For the quarter ended September 2025, the company reported net sales of ₹193.41 crores, achieving a year-on-year growth of 25.42% and a sequential increase of 11.77%. This performance marks the highest quarterly revenue in recent history, indicating strong demand for its automotive marketplace services.
The net profit for the same quarter reached ₹59.66 crores, which is a significant year-on-year increase of 113.99%, showcasing robust profitability growth. The operating margin, excluding other income, improved to 32.88%, up from 21.20% in the previous year, reflecting effective cost management and operational leverage as the company scaled its revenue. The profit after tax (PAT) margin also reached 33.13%, the highest in eight quarters, further emphasizing the company's improved profitability metrics.

However, in the subsequent quarter ending December 2025, Cartrade Tech experienced a decline in both net sales and net profit on a quarter-on-quarter basis. Net sales grew by 8.41%, which is lower than the previous quarter's growth rate, while consolidated net profit decreased by 6.37%. The operating profit margin showed a slight improvement to 37.32%, indicating some resilience in operational efficiency despite the revenue slowdown.

Overall, Cartrade Tech's financial performance illustrates a strong growth trajectory in key operational metrics, although recent results indicate a potential softening in momentum. The company has seen an adjustment in its evaluation, reflecting the market's response to its financial performance and valuation metrics. Investors may want to monitor future quarters for indications of sustained growth and profitability.