Are Kernex Microsystems (India) Ltd latest results good or bad?

Kernex Microsystems (India) Ltd's latest financial results for the quarter ended December 2025 reveal a complex operational landscape. The company reported a significant quarter-on-quarter revenue growth of 54.07%, reaching ₹72.60 crores, which marks a notable recovery from the previous quarter's decline. Year-on-year, revenue also saw a substantial increase of 97.23%, indicating strong market traction and business expansion. However, this revenue growth did not translate into net profit growth, as the company experienced a decline in net profit of 8.07% from the previous quarter, resulting in a profit of ₹6.04 crores. This marks the third consecutive quarter of profit contraction, raising concerns about the sustainability of its turnaround efforts. The operating margin also compressed significantly to 23.14%, down from 30.28% in the prior quarter, reflecting challenges in operational efficiency despite higher sales volumes. Additionally, interest costs surged dramatically by 94.46% to ₹9.12 crores, the highest quarterly burden recorded, which has raised concerns regarding the company's ability to manage its debt servicing obligations effectively. The interest coverage ratio, which measures the company's ability to cover interest expenses with operating profit, fell to a concerning level, indicating potential financial strain. Overall, while Kernex Microsystems demonstrated robust revenue growth, the simultaneous decline in profitability and rising interest costs highlight significant operational challenges that the company must address. The company saw an adjustment in its evaluation, reflecting these mixed results and ongoing concerns about its financial health and operational sustainability.