Are Mansi Fin.(Chen) latest results good or bad?

Mansi Finance's latest financial results for the quarter ending September 2025 present a complex picture. The company reported a net profit of ₹1.71 crores, reflecting a significant year-on-year growth of 106.02%, compared to ₹0.83 crores in the same quarter last year. This marks the highest quarterly profit recorded by the company, driven primarily by an impressive expansion in profit margins. The profit after tax (PAT) margin surged to 62.18%, a notable increase from the previous quarter's 35.78%, suggesting effective cost management and reduced interest expenses.
However, the company's net sales for the same period were ₹2.75 crores, which indicates a sequential decline of 19.35% from the previous quarter, continuing a trend of revenue volatility. Year-on-year, net sales still showed a robust growth of 43.98% compared to ₹1.91 crores in September 2024. This divergence between the rising profit and declining sales raises concerns about the sustainability of the profit margins achieved, as they appear to be driven more by cost reductions rather than consistent revenue growth.

The operating profit before depreciation, interest, and tax (PBDIT) reached ₹2.32 crores, marking a year-on-year increase of 47.77%. Despite the positive trajectory in profitability, the company continues to face challenges related to operational consistency and market confidence, as evidenced by the absence of institutional holdings and a below-average quality grade.

In terms of capital efficiency, the return on equity (ROE) improved to 11.95%, which is a significant enhancement from the five-year average of 5.61%. This improvement reflects better utilization of equity capital, although it remains below industry standards.

Overall, while Mansi Finance has demonstrated substantial profit growth and improved margins, the operational volatility and revenue inconsistencies indicate that investors should approach the company with caution. The company saw an adjustment in its evaluation, reflecting the tension between its attractive valuation metrics and underlying operational concerns.