Are Finkurve Financial Services Ltd latest results good or bad?

Finkurve Financial Services Ltd's latest financial results for Q3 FY26 reveal a complex picture marked by significant operational challenges. The company reported a net profit of ₹4.91 crore, reflecting a notable quarter-on-quarter decline of 71.15%, which raises concerns about the sustainability of its earnings. In contrast, the year-on-year comparison shows a substantial increase of 165.41%, indicating recovery from a weaker base in the previous year. Revenue for the same quarter stood at ₹23.64 crore, down 14.78% from the previous quarter's ₹27.74 crore, which suggests potential difficulties in maintaining business momentum. The operating margin contracted sharply to 35.24%, down from an exceptional 76.08% in the prior quarter, indicating a significant drop in operational efficiency. This contraction raises questions about the quality of the previous quarter's performance, which may have included one-off gains. Finkurve's return on equity (ROE) of 8.24% is below industry standards, suggesting inefficiencies in capital deployment, which is concerning given the company's elevated valuation multiples. The trailing P/E ratio of 63x significantly exceeds the NBFC industry average of 22x, indicating that investors are paying a premium for growth that appears increasingly uncertain. The company's financial performance has shown volatility, with the latest quarter's results highlighting a troubling trend of inconsistency. Despite impressive year-on-year growth figures, the sequential declines in both profit and revenue suggest operational challenges that could undermine future performance. Additionally, the increase in interest expenses and the absence of domestic institutional support further complicate the investment narrative. Overall, Finkurve Financial Services Ltd's recent results prompt a cautious outlook, with the company experiencing an adjustment in its evaluation amidst these operational challenges and market dynamics.