Are India Glycols Ltd latest results good or bad?

India Glycols Ltd reported its financial results for the second quarter of FY26, showcasing a complex operational landscape. The company achieved consolidated net sales of ₹1,092.20 crores, reflecting a sequential growth of 4.97% from the previous quarter and a year-on-year increase of 13.63%. This marks the highest quarterly revenue in the company's recent history, driven by strong demand across its diverse product portfolio serving various sectors, including textiles and pharmaceuticals. However, the profitability aspect presents a more nuanced picture. The consolidated net profit for the quarter was ₹65.06 crores, which represents a quarter-on-quarter decline of 11.18% but a significant year-on-year increase of 30.88%. The operating margin showed a slight improvement, reaching 14.43%, up marginally from 14.38% in the previous quarter, indicating some resilience in operational efficiency despite challenges. A notable concern is the surge in interest costs, which rose to ₹49.28 crores, an increase of 10.30% from the previous quarter. This elevated interest burden has impacted the profit after tax margin, which contracted to 5.96% compared to 7.04% in the prior quarter. The company's debt levels have also risen, with a debt-to-equity ratio of 0.84 times, highlighting the importance of monitoring its leverage and financial flexibility. Overall, while India Glycols Ltd demonstrated strong revenue growth and operational efficiency, the rising debt servicing costs and modest return ratios present challenges that require careful attention. The company saw an adjustment in its evaluation, reflecting the mixed nature of its financial performance. Investors should consider these factors when assessing the company's future prospects.