Are Indo Amines Ltd latest results good or bad?

Indo Amines Ltd's latest financial results for Q2 FY26 present a mixed picture. The company reported a net profit of ₹18.11 crore, which reflects a year-on-year growth of 31.33%. However, this figure represents a significant sequential decline of 37.21% from the previous quarter. Revenue for the same period reached ₹277.05 crore, marking a modest year-on-year increase of 2.90%, but also a contraction of 3.66% compared to the prior quarter. This indicates a potential moderation in demand within the specialty chemicals segment. The operating margin, excluding other income, improved to 11.54%, up 262 basis points year-on-year, showcasing better operational efficiencies and cost management. Despite this, the profit after tax (PAT) margin of 6.54% is notably lower than the 10.03% achieved in Q1 FY26, primarily due to the normalization of other income, which decreased from ₹15.52 crore in Q1 to ₹4.91 crore in Q2. The company's return on equity (ROE) stood at 19.46% for FY25, indicating effective capital utilization, although concerns about rising leverage are evident, with long-term debt increasing significantly. The balance sheet shows a debt-to-EBITDA ratio of 3.04 times, suggesting elevated financial risk. Overall, Indo Amines Ltd's performance in Q2 FY26 reflects operational resilience amid challenging market conditions, but the sequential declines in profit and revenue raise questions about the sustainability of its earnings. The company has experienced an adjustment in its evaluation, reflecting the complexities of its financial health and market positioning.