Are D & H India Ltd latest results good or bad?

D & H India Ltd's latest financial results for the quarter ended December 2025 reflect a complex operational landscape. The company reported net sales of ₹61.95 crores, which represents a sequential decline of 5.59% from the previous quarter, indicating typical seasonal softness in industrial demand. However, year-on-year, the revenue shows a healthy growth of 12.23%, suggesting that the company is gaining market share in a competitive environment. In terms of profitability, D & H India achieved a net profit of ₹2.43 crores, marking a significant increase of 53.80% quarter-on-quarter and 43.79% year-on-year. This improvement in net profit is accompanied by an operating margin of 8.43%, the highest in seven quarters, reflecting effective cost management and operational efficiency despite the sequential revenue decline. The company's return on equity (ROE) stands at 13.28%, indicating improving capital efficiency. However, it is important to note that the company's financial leverage has increased, with a debt-to-equity ratio climbing to 1.35 times, raising concerns about balance sheet sustainability. The rising interest costs, which reached ₹1.55 crores in the latest quarter, further highlight the financial pressures stemming from this leverage. Overall, while D & H India Ltd has demonstrated strong operational performance with significant profitability improvements, the backdrop of increasing financial leverage and negative operating cash flow presents challenges that may affect its future growth trajectory. The company saw an adjustment in its evaluation, reflecting these mixed operational results and underlying financial concerns.