Are Equippp Social Impact Technologies Ltd latest results good or bad?

Equippp Social Impact Technologies Ltd has reported notable financial results for Q3 FY26, reflecting a significant operational turnaround. The company achieved net sales of ₹12.05 crores, which represents a substantial year-on-year growth of 2,310% compared to ₹0.50 crores in Q3 FY25, and a sequential increase of 10.96% from ₹10.86 crores in Q2 FY26. This consistent quarter-on-quarter growth throughout FY26 indicates a strong upward trend in revenue generation. The net profit for Q3 FY26 was ₹0.36 crores, marking a transition from losses in previous periods and showcasing a sequential increase of 63.64% from ₹0.22 crores in Q2 FY26. The profit after tax margin improved to 2.99%, up from 2.03% in the prior quarter, further indicating enhanced profitability. Additionally, the operating margin reached 6.47%, a significant recovery from the negative 16% margin recorded in Q3 FY25, highlighting improved operational efficiency. The company's return on capital employed (ROCE) has dramatically improved to 20.46% on a trailing twelve-month basis, reflecting enhanced capital efficiency. Similarly, return on equity (ROE) rose to 20.07%, indicating better profitability relative to equity. However, the company operates with a high price-to-earnings (P/E) ratio of 112x, which is considerably above the sector average, leading to discussions about the sustainability of its current valuation. Despite these positive operational metrics, the stock has underperformed against broader market indices, declining 23.32% over the past year. This underperformance raises questions about market confidence in the sustainability of the company's growth trajectory. In summary, Equippp Social Impact Technologies Ltd has demonstrated impressive operational improvements and a return to profitability, but the high valuation multiples and recent stock performance suggest caution. The company saw an adjustment in its evaluation, reflecting the complexities of its financial landscape.