Are Disa India Ltd latest results good or bad?

Disa India Ltd's latest financial results reveal a complex picture of operational performance. In the quarter ended December 2025, the company reported net sales of ₹128.62 crores, reflecting a quarter-on-quarter growth of 24.03%, a notable improvement from the previous quarter's growth of 1.70%. This growth indicates a strong recovery in sales momentum, suggesting that the company has effectively capitalized on industrial demand. The consolidated net profit for the same period was ₹15.20 crores, which represents a quarter-on-quarter increase of 24.59%, contrasting with a decline of 6.44% in the prior quarter. This rebound in net profit is a positive sign, indicating improved profitability despite previous challenges. However, the operating profit margin (excluding other income) was reported at 16.91%, which is an increase from the 13.92% margin in the previous quarter. This improvement in margin, albeit modest, suggests that the company is managing its costs more effectively in the face of rising input costs and competitive pressures. Despite these positive operational trends, Disa India Ltd has experienced a revision in its evaluation, reflecting the market's response to its financial performance and broader economic conditions. The company's ability to maintain a strong return on equity (ROE) of 17.33% and a robust return on capital employed (ROCE) of 85.67% underscores its operational efficiency. In summary, while Disa India Ltd has demonstrated significant sales and profit growth in the latest quarter, the ongoing challenges related to margin compression and valuation concerns warrant careful monitoring. The company's financial health remains strong, but the market's perception and evaluation have adjusted in light of these dynamics.