Are Krishanveer Forg latest results good or bad?

Krishanveer Forge's latest financial results for Q2 FY26 present a mixed picture. The company reported net sales of ₹20.98 crores, which reflects a sequential decline of 11.25% from ₹23.64 crores in Q1 FY26. However, on a year-on-year basis, sales showed a modest growth of 4.64% compared to ₹20.05 crores in Q2 FY25. This suggests that while there are challenges in the current quarter, the company has managed to maintain some level of market position relative to the previous year.
Net profit for the quarter was ₹1.79 crores, down 13.53% from ₹2.07 crores in the prior quarter, primarily impacted by the revenue contraction and an increase in the effective tax rate. Year-on-year, net profit showed a significant increase of 45.53% from ₹1.23 crores in Q2 FY25, indicating strong operational improvements despite the recent quarterly decline.

A notable highlight from the results is the operating margin, which expanded to 14.82%, marking a significant improvement of 357 basis points from the previous quarter's 11.25%. This increase reflects enhanced operational efficiency and a favorable product mix, showcasing the company's ability to manage costs effectively even amid revenue challenges.

For the first half of FY26, Krishanveer Forge accumulated net sales of ₹44.62 crores and a combined net profit of ₹3.86 crores, with a PAT margin of 8.65%. This performance positions the company reasonably well for the full year, although the sequential revenue decline raises points of concern regarding demand sustainability.

Overall, Krishanveer Forge's operational trends indicate a company that is navigating through some headwinds while also demonstrating significant improvements in profitability metrics. The company saw an adjustment in its evaluation, reflecting these dynamics in its financial performance.