Are International Conveyors Ltd latest results good or bad?

International Conveyors Ltd's latest financial results for Q2 FY26 reflect a complex picture of operational performance overshadowed by significant volatility in other income. The company reported net sales of ₹45.30 crores, marking a quarter-on-quarter growth of 27.75% and a year-on-year increase of 47.22%. This strong sales growth indicates robust demand in the conveyor belting segment, potentially driven by increased industrial activity. However, the financial results were marred by a net loss of ₹17.36 crores, primarily due to a substantial negative other income of ₹32.33 crores, which sharply contrasted with the positive other income of ₹65.90 crores recorded in the previous quarter. This dramatic swing in non-operating income has raised concerns about the sustainability of the company's reported profitability, as it significantly impacted the overall financial outcome despite strong operational metrics. The operating profit (excluding other income) reached ₹10.81 crores, resulting in an operating margin of 23.86%, which is the highest level achieved in recent quarters. This improvement in margins suggests effective cost management and operational leverage, as employee costs decreased significantly year-on-year. The company's return on equity (ROE) of 25.35% reflects strong capital efficiency, indicating that it is generating substantial returns on shareholder funds. Despite these operational strengths, the volatility in other income remains a critical concern, complicating the assessment of the company's true earnings power. Overall, while International Conveyors Ltd demonstrated operational excellence with strong revenue growth and margin expansion, the significant loss reported due to fluctuating other income raises questions about the predictability and quality of its earnings. The company has experienced an adjustment in its evaluation, reflecting these mixed signals in its financial performance.