Are Ganges Securities Ltd latest results good or bad?

Ganges Securities Ltd's latest financial results present a mixed picture. In Q2 FY26, the company reported net sales of ₹15.51 crores, reflecting a substantial sequential growth of 143.87% from ₹6.36 crores in Q1 FY26, although year-on-year growth was modest at 2.31% compared to ₹15.16 crores in Q2 FY25. The net profit for the same quarter was ₹2.91 crores, which shows a significant sequential improvement of 182.52% from ₹1.03 crores in Q1 FY26, yet it marks a notable decline of 59.70% from ₹7.22 crores in Q2 FY25. The company's operating profit margin (excluding other income) improved to 31.91% in Q2 FY26 from 13.99% in the previous quarter, but it remains below the 58.97% margin achieved in the same quarter last year. The PAT margin also increased to 18.76% from 16.19% in Q1 FY26, but it is substantially lower than the 47.63% recorded in Q2 FY25. A critical concern is the return on equity (ROE), which stands at a critically low 0.19%, indicating significant inefficiency in generating returns on shareholder capital. This low ROE raises questions about the company's ability to create shareholder value. Furthermore, the company's revenue pattern has shown considerable volatility over the past quarters, suggesting an unstable business model. In terms of evaluation, Ganges Securities has experienced an adjustment in its evaluation, reflecting the challenges it faces in maintaining consistent profitability and operational efficiency. The company's financial performance has been characterized by erratic revenue patterns and a concerning decline in year-on-year profit, which may impact investor sentiment moving forward. Overall, while there are signs of sequential recovery in net profit and sales, the underlying operational challenges and low capital efficiency present significant risks for Ganges Securities Ltd.