Are Hariom Pipe Industries Ltd latest results good or bad?

Hariom Pipe Industries Ltd's latest financial results for Q2 FY26 indicate a significant decline in both net profit and revenue compared to the previous quarter. The company reported a net profit of ₹10.41 crores, which reflects a sharp reduction of 55.89% quarter-on-quarter and a 33.90% decline year-on-year. Revenue for the same quarter was ₹335.87 crores, down 27.14% from ₹460.96 crores in Q1 FY26, although it did show a modest year-on-year increase of 6.87% from ₹314.28 crores in Q2 FY25. The operating profit margin, while slightly improved to 12.72% from 12.49% in the previous quarter, still indicates challenges as the company faces pressures from volume contraction and elevated financial costs. The PAT margin has compressed to 3.10%, marking the lowest level of profitability in the last seven quarters. Despite a strong half-yearly performance with a 21.20% increase in revenue to ₹796.83 crores compared to H1 FY25, the sequential decline in Q2 raises concerns about the sustainability of demand and pricing power in a competitive market. The company also experienced a deterioration in its interest coverage ratio, which fell to 3.22 times, highlighting financial strain amid rising costs. Overall, Hariom Pipe's recent results reflect operational challenges, particularly in maintaining profitability and managing financial burdens. The company has seen an adjustment in its evaluation, reflecting these pressures and the need for improved earnings visibility moving forward.