Are Cupid Ltd latest results good or bad?

Cupid Ltd's latest financial results for Q2 FY26 reflect significant operational momentum, with net sales reaching ₹84.45 crores, marking a year-on-year growth of 103.25% and a sequential increase of 41.22%. This robust revenue growth is attributed to both volume expansion and improved pricing across its product offerings. The net profit for the quarter stood at ₹24.13 crores, which represents a substantial year-on-year increase of 140.34% and a sequential growth of 60.76%. The company also reported an operating margin of 33.64%, which is a notable improvement from the previous year, indicating enhanced profitability driven by operational leverage and effective cost management. The net profit margin for the quarter was recorded at 28.57%, further demonstrating the company's ability to convert revenue growth into profit. Despite these impressive quarterly results, there are indications of a recent adjustment in the company's evaluation, suggesting that the market is reassessing its valuation metrics in light of the current performance. Looking at the prior quarter, Q1 FY26, Cupid had net sales of ₹59.80 crores and a net profit of ₹15.01 crores, showcasing a clear upward trend in both revenue and profitability. However, the upcoming quarter's projections indicate a slowdown in growth rates, with net sales growth of 10.72% and net profit growth of 36.05% compared to the previous quarter. In summary, Cupid Ltd has demonstrated remarkable growth in its latest financial results, with strong revenue and profit figures. However, the market's reevaluation of the company suggests a need for careful monitoring of future performance to determine the sustainability of this growth trajectory.