Are Delton Cables Ltd latest results good or bad?

Delton Cables Ltd's latest financial results for Q3 FY26 present a mixed picture of performance. The company achieved record net sales of ₹268.40 crores, reflecting a sequential growth of 11.21% and a significant year-on-year increase of 42.28%. This robust revenue growth indicates strong demand for its products, particularly in the electrical cables sector. However, the profitability metrics reveal challenges. The net profit for the quarter was ₹4.09 crores, which represents a notable quarter-on-quarter decline of 34.98%, despite a year-on-year increase of 21.73%. The operating profit remained relatively stable at ₹18.08 crores, slightly down from the previous quarter, while the operating margin contracted to 6.74%, down 80 basis points from Q2 FY26. This margin compression raises concerns regarding the company's operational efficiency, particularly in light of rising interest costs, which reached ₹11.00 crores—the highest in the company's history. The company's interest coverage ratio has also deteriorated, now at 1.64 times, indicating potential difficulties in servicing its debt obligations. Furthermore, the significant increase in trade payables suggests aggressive working capital management, which could pose risks if supplier relationships are strained. Overall, while Delton Cables has demonstrated impressive revenue growth, the inability to translate this into proportional profit growth highlights underlying operational and financial challenges that require management's attention. Additionally, the company experienced an adjustment in its evaluation, reflecting the complexities of its financial performance amidst these operational pressures.