Are Inventure Growth & Securities Ltd latest results good or bad?

Inventure Growth & Securities Ltd reported its Q3 FY26 results, showcasing a significant quarterly performance with a net profit of ₹3.08 crores, reflecting a substantial growth of 285.00% compared to the previous quarter. Revenue also demonstrated strong momentum, reaching ₹16.32 crores, which is a 23.45% increase quarter-on-quarter and a 40.93% increase year-on-year. The operating margin improved markedly to 43.01%, indicating enhanced operational efficiency, while the PAT margin rose to 25.33%, suggesting better profitability. Despite these positive quarterly results, the overall financial health of Inventure Growth remains a concern. The company has a low average return on equity (ROE) of 4.98% and a recent ROE of only 1.41%, which raises questions about its ability to generate adequate returns for shareholders. The stock trades at a price-to-book value of 0.45x, significantly below its book value, reflecting market skepticism regarding its profitability sustainability. The volatility in earnings is notable, with the company experiencing erratic profit swings over the past year, which raises concerns about the stability of its business model. Furthermore, Inventure Growth has underperformed relative to its peers in the capital markets sector, with a substantial gap in performance metrics. In summary, while Inventure Growth & Securities Ltd has shown a remarkable recovery in its latest quarterly results, the underlying operational challenges, weak return metrics, and lack of institutional support suggest that caution is warranted. The company saw an adjustment in its evaluation, reflecting the complexities of its financial situation amidst recent performance improvements.