Are Hiliks Technologies Ltd latest results good or bad?

Hiliks Technologies Ltd's latest financial results for Q3 FY26 present a complex picture characterized by significant revenue growth alongside notable operational challenges. The company reported net sales of ₹8.04 crores, reflecting a substantial year-on-year increase of 336.96% and a quarter-on-quarter growth of 111.02%. This marks the highest quarterly revenue in the company's history, indicating strong sales momentum. However, this revenue surge is overshadowed by a net loss of ₹0.27 crores for the quarter, which represents a stark decline in profitability compared to previous periods. The company's operating margin fell to -1.49%, a significant drop from a positive margin of 13.39% in the prior quarter, highlighting severe operational inefficiencies. This collapse in margins raises concerns about the company's ability to convert its sales into profits effectively. Additionally, the return on equity (ROE) remains low at 3.40%, which is below industry standards, suggesting that the company is not generating adequate returns for its shareholders relative to the equity capital deployed. The financial performance indicates a disconnect between revenue growth and profitability, prompting questions about the sustainability of the business model. The market has reacted with skepticism to these results, leading to an adjustment in the company's evaluation. The shareholding pattern also reveals a decline in promoter holdings, which may indicate waning confidence among insiders. Overall, while Hiliks Technologies has achieved remarkable revenue growth, the accompanying operational challenges and profitability concerns warrant careful scrutiny moving forward.