Are Century Extrusions Ltd latest results good or bad?

Century Extrusions Ltd. has reported its financial results for the quarter ended September 2025, showcasing a notable performance in terms of profitability and operational efficiency. The company achieved net sales of ₹109.66 crores, reflecting a quarter-on-quarter growth of 5.29% from ₹104.15 crores in the previous quarter. This sequential growth comes after a decline in the previous quarter, indicating a recovery in sales performance. Net profit for the same period reached ₹2.76 crores, marking a quarter-on-quarter increase of 16.95% from ₹2.36 crores in the prior quarter. This growth in net profit is significant, particularly as it demonstrates the company's ability to enhance profitability despite a challenging demand environment in the aluminium extrusion industry. The operating margin, excluding other income, improved to 6.99%, the highest level in seven quarters, up from 6.69% in the previous quarter. This expansion in margins indicates better cost management and operational efficiency, which are critical in a competitive market. Additionally, the profit before tax (PBT) rose to ₹3.57 crores, which is a 13.69% increase sequentially. The effective tax rate decreased to 22.69%, contributing positively to the net profit growth. The company's ability to maintain profitability growth ahead of revenue growth highlights successful margin enhancement initiatives. On a half-yearly basis, Century Extrusions reported net sales of ₹213.81 crores for H1 FY26, up 5.58% from ₹207.92 crores in H1 FY25, and a net profit of ₹5.12 crores compared to ₹4.81 crores in the same period last year, reflecting a growth of 6.44%. Overall, the financial results suggest that Century Extrusions is effectively navigating operational challenges and enhancing profitability through margin expansion. However, the company has experienced a recent adjustment in its evaluation, reflecting the market's response to its performance amid broader industry conditions.