Are Indiabulls Limited latest results good or bad?

Indiabulls Limited's latest financial results for Q2 FY26 present a complex picture characterized by significant operational fluctuations. The company reported a net profit of ₹74.60 crores, marking a dramatic increase compared to the previous quarter, where the profit was only ₹0.40 crores. This represents a substantial sequential growth in profitability, indicating a potential turnaround in operational performance. Revenue for the quarter reached ₹236.27 crores, a notable increase from zero revenue in the preceding quarters, reflecting a sequential growth of 157.88% from ₹91.62 crores in Q1 FY26. This surge in revenue, alongside an operating margin of 45.38%, the highest in the company's recent history, suggests a strong operational performance for the quarter. However, it is essential to contextualize these results against the backdrop of the company's historical revenue volatility, which has seen significant fluctuations, including periods of zero sales. Despite the positive quarterly results, concerns remain regarding the company's balance sheet, which reported negative equity of ₹276.42 crores as of March 2025. This negative net worth raises fundamental solvency questions, overshadowing the recent operational gains. The company's long-term debt has decreased significantly, but current liabilities still exceed current assets by a substantial margin, indicating a working capital deficit. The financial performance metrics, such as the profit after tax margin of 31.87%, suggest a strong earnings quality for the quarter, yet they must be viewed in light of the company's erratic revenue generation history. The recent results have led to an adjustment in the company's evaluation, reflecting the ongoing complexities in its financial health. In summary, while Indiabulls Limited's Q2 FY26 results show a remarkable operational performance in isolation, the underlying issues related to revenue sustainability and balance sheet integrity warrant cautious consideration. The company must demonstrate consistent revenue generation and address its negative equity to build a more stable financial foundation moving forward.