Are Medico Remedies Ltd latest results good or bad?

Medico Remedies Ltd's latest financial results for the quarter ending December 2025 reflect a complex operational landscape characterized by significant revenue growth alongside challenges in profitability. The company reported net sales of ₹58.68 crores, which represents a year-on-year growth of 48.59%, substantially outpacing the previous year's growth rate of 32.65%. This impressive revenue increase indicates a strong market presence and effective sales strategies within the competitive pharmaceutical sector. However, the profitability metrics tell a different story. The net profit for the same quarter was ₹2.87 crores, reflecting a modest year-on-year growth of 9.54%, a significant decline from the previous year's growth of 80.69%. This disparity between revenue and profit growth highlights a concerning trend of margin compression. The operating margin, excluding other income, decreased to 7.38% from 7.88% in the prior year, while the PAT margin fell sharply to 4.89% from 6.63%. These declines suggest that while the company is successfully driving sales, it is facing challenges in maintaining profitability, potentially due to rising costs or pricing pressures. The financial performance indicates that Medico Remedies is navigating a critical phase where robust revenue growth is not translating into proportional profit gains. The company has seen an adjustment in its evaluation, reflecting the mixed signals from its operational performance. Investors and stakeholders may need to monitor the company's ability to address these profitability challenges while sustaining its revenue momentum in the upcoming quarters.