Are Ceejay Finance Ltd latest results good or bad?

Ceejay Finance Ltd's latest financial results present a complex picture. For the fiscal year ending 2025, the company reported net sales of ₹26.00 crores, reflecting a significant year-on-year revenue growth of 30.00% compared to ₹20.00 crores in FY24. This marks a notable acceleration from the previous year's growth of 5.26%, indicating increased business activity and potentially improved asset deployment across its lending portfolio. However, the net profit remained unchanged at ₹6.00 crores for the third consecutive year, despite the substantial revenue increase. This stagnation has led to a decline in the profit after tax margin, which fell from 30.00% in FY24 to 23.08% in FY25. Additionally, operating margins contracted significantly from 60.00% to 50.00%, suggesting rising operational costs that are outpacing revenue growth. Total expenditure surged by 50.00%, highlighting deteriorating cost efficiency. The company's return on equity (ROE) for FY25 was reported at 8.90%, which is below industry standards, indicating challenges in generating adequate returns on shareholder capital. The absence of institutional investor interest raises concerns regarding corporate governance and financial transparency, as reflected in the complete lack of holdings from foreign institutional investors, mutual funds, and other domestic institutional investors. In the most recent quarterly results for September 2025, Ceejay Finance saw a year-on-year net sales growth of 5.88%, a decrease from the previous year's 27.33%. The standalone net profit experienced a decline of 3.96%, contrasting with a growth of 49.34% in the same quarter of the prior year. Operating profit margins also contracted, reflecting ongoing operational challenges. Overall, while Ceejay Finance Ltd has demonstrated strong revenue growth, the inability to convert this into profit expansion, coupled with rising operational costs and weak return metrics, suggests significant underlying challenges. The company has experienced an adjustment in its evaluation, reflecting these complexities in its financial performance.