Are Fundviser Capital (India) Ltd latest results good or bad?

Fundviser Capital (India) Ltd's latest financial results for Q2 FY26 present a complex picture of operational performance. The company reported consolidated net profit of -₹0.59 crores, which reflects a significant downturn compared to the previous quarter, indicating challenges in profitability despite a notable increase in net sales. Specifically, net sales surged to ₹44.49 crores, marking a substantial quarter-on-quarter growth of 161.71%. However, this revenue growth did not translate into profitability, as the operating margin plummeted to just 0.07%, down from 4.82% in Q1 FY26. The operational performance has been characterized by volatility, with net sales fluctuating dramatically over recent quarters, raising concerns about the sustainability of the business model. The company's average return on equity (ROE) stands at 7.90%, which is below the peer average, and the return on capital employed (ROCE) is similarly low at 4.06%. These metrics suggest that Fundviser Capital is struggling to generate adequate returns relative to the capital employed. Additionally, the financial data indicates that the company has experienced a significant swing in other income, which negatively impacted overall profitability. The recent quarter's results have led to an adjustment in the company's evaluation, reflecting the ongoing concerns regarding its operational efficiency and profitability. In summary, while Fundviser Capital has achieved impressive revenue growth, the inability to convert this into sustainable profits and the erratic nature of its financial performance raise critical questions about its operational viability and future prospects.