Are GTT Data Solutions Ltd latest results good or bad?

GTT Data Solutions Ltd's latest financial results for the quarter ending December 2025 reveal a significant disparity between its revenue growth and profitability metrics. The company reported net sales of ₹42.15 crores, reflecting an impressive year-on-year growth of 818.30% and a sequential increase of 14.63% from the previous quarter. This marks the highest quarterly revenue since its transformation into a data solutions provider. However, the operational performance indicates challenges, as the consolidated net profit was recorded at a loss of ₹1.94 crores, which represents a substantial increase in losses compared to the previous quarter. The operating margin, excluding other income, fell sharply to 0.76%, down from 4.35% in the prior quarter, highlighting significant cost pressures despite the revenue surge. The profit after tax (PAT) margin remained negative at -4.34%, continuing a trend of persistent losses over several quarters. The financial data also points to rising operational expenses, particularly employee costs, which accounted for a significant portion of net sales. The company's return on equity (ROE) and return on capital employed (ROCE) metrics remain negative, indicating ongoing challenges in generating shareholder value. In light of these results, GTT Data Solutions has experienced an adjustment in its evaluation, reflecting the ongoing operational difficulties despite remarkable revenue growth. The company’s financial trajectory raises questions about the sustainability of its business model, especially given the lack of profitability and the mounting operational inefficiencies.