Are Inox India Ltd latest results good or bad?

Inox India Ltd's latest financial results for Q2 FY26 reflect a company navigating strong revenue growth while facing some operational challenges. The net sales for the quarter reached ₹358.22 crores, marking a year-on-year increase of 16.85% and a sequential growth of 5.48% from the previous quarter. This growth indicates robust demand for the company's cryogenic equipment and effective order execution. However, the net profit for the same quarter was ₹60.84 crores, which represents a 22.93% increase compared to the previous year but shows a slight decline of 0.46% from Q1 FY26. This sequential dip in profit suggests some pressure on margins, as reflected in the PAT margin, which decreased to 16.98% from 18.00% in the prior quarter, although it remains above the 16.14% recorded in Q2 FY25. The operating margin for Q2 FY26 was reported at 21.75%, down from 22.42% in Q1 FY26, indicating potential challenges in maintaining profitability amidst rising competitive intensity or input costs. Despite these pressures, Inox India demonstrated exceptional capital efficiency with a return on equity (ROE) of 27.72% and a return on capital employed (ROCE) of 43.20%, positioning the company favorably within its sector. The company has also seen a stable promoter holding of 75% and a gradual increase in foreign institutional investor participation, reflecting confidence in its growth trajectory. Overall, Inox India's performance illustrates a blend of strong operational metrics and some margin volatility, leading to an adjustment in its evaluation. As the company continues to execute on its order book and navigate market conditions, monitoring its margin trends will be crucial for assessing future performance.