Are Crompton Gr. Con latest results good or bad?

Crompton Greaves' latest financial results for the quarter ending September 2025 reveal a challenging operational environment. The company reported consolidated net profit of ₹71.17 crores, which reflects a significant decline of 43.02% year-on-year. This downturn in profitability is accompanied by a modest increase in net sales, which reached ₹1,915.57 crores, marking only a 1.02% growth compared to the same quarter last year.
A critical observation from the results is the operating margin, which contracted to 8.27%, the lowest level in eight quarters. This decline indicates heightened cost pressures and competitive intensity within the consumer electricals sector. The operating profit before depreciation, interest, tax, and other income (PBDIT) also saw a substantial year-on-year decrease of 22.19%, further emphasizing the company's struggles with profitability.

Sequentially, the results show a concerning trend, with consolidated net profit declining 41.80% from the previous quarter, alongside a 4.14% drop in revenue. This sequential weakness suggests that the challenges faced by the company are not merely cyclical but may indicate deeper structural issues that require management's attention to restore operational momentum.

Despite these operational challenges, Crompton Greaves maintains a strong balance sheet, highlighted by its zero long-term debt status, which provides financial flexibility. The company reported a healthy return on equity (ROE) of 20.83%, indicating effective capital utilization, although this is lower than historical peaks.

In light of these results, Crompton Greaves experienced an adjustment in its evaluation, reflecting the ongoing operational difficulties and the need for strategic focus to navigate the current market landscape. Investors should monitor future quarters for signs of recovery in margins and sales growth.