Are Kalyan Capitals Ltd latest results good or bad?

Kalyan Capitals Ltd's latest financial results for Q2 FY26 reveal a complex picture characterized by significant operational challenges. The company reported a consolidated net profit of ₹1.14 crore, which reflects a notable decline of 44.66% compared to the previous quarter. This sharp decrease in profitability is primarily attributed to a substantial rise in interest expenses, which surged to ₹6.17 crore, marking a 28.01% increase quarter-on-quarter and indicating the highest interest burden in recent periods. In terms of revenue, Kalyan Capitals recorded net sales of ₹8.57 crore, which represents a slight sequential decline of 2.94%. However, on a year-on-year basis, sales showed resilience with a growth of 27.72%, suggesting some underlying business momentum despite the recent quarterly contraction. The company's ability to convert sales into profit has been severely impacted, as evidenced by the PAT margin, which fell to 15.99%, down from 27.41% in the previous quarter—a decline of 1,142 basis points. The financial performance is further complicated by the company's high leverage, with a debt-to-equity ratio of 4.97 times, indicating aggressive borrowing that constrains financial flexibility. This elevated leverage has led to a weak interest coverage ratio of 1.45 times, raising concerns about the company's capacity to manage its debt obligations effectively. Overall, Kalyan Capitals Ltd's results highlight a troubling disconnect between revenue growth and profitability, compounded by significant operational challenges stemming from high interest expenses and a precarious capital structure. The company has seen an adjustment in its evaluation, reflecting these ongoing concerns regarding its financial health and operational sustainability.