Are Endurance Technologies Ltd. latest results good or bad?

Endurance Technologies Ltd. has reported its financial results for the quarter ended September 2025, showcasing a notable performance in terms of revenue growth while facing challenges in profitability margins. The company achieved a record quarterly revenue of ₹3,582.82 crores, reflecting a year-on-year growth of 23.01%, which is significantly higher than the previous year's growth of 14.45%. This robust revenue increase indicates strong demand across its product portfolio and successful market share gains. However, the net profit for the same period stood at ₹227.27 crores, marking an 11.97% increase year-on-year, which is a decline from the previous year's growth rate of 31.33%. This suggests that while the company is generating higher sales, it is encountering pressures on profitability. The operating margin slightly contracted to 13.31% from 13.37% in the previous quarter, and the profit after tax (PAT) margin decreased from 6.82% to 6.34%, indicating challenges in maintaining profitability amidst rising costs. The operational performance reflects a company in a phase of expansion, balancing aggressive capacity additions with the need for capital efficiency. The return on equity (ROE) was reported at 14.46% for FY25, showing improvement from previous averages, while the return on capital employed (ROCE) was a healthy 20.86%. Despite these positive indicators, the company is experiencing margin volatility, which is a point of concern. Additionally, the financial metrics suggest that Endurance Technologies is navigating a complex environment characterized by rising input costs and competitive pricing pressures. The recent results have prompted an adjustment in the company's evaluation, reflecting a balanced assessment of its fundamentals against valuation concerns. In summary, Endurance Technologies Ltd. has demonstrated strong revenue growth in its latest results, but profitability metrics indicate a need for closer scrutiny as the company manages its expansion and operational challenges.