Are Motor & General Finance Ltd latest results good or bad?

Motor & General Finance Ltd's latest financial results for the quarter ended September 2025 reveal significant operational challenges despite a headline net profit figure of ₹1.11 crores, which reflects a substantial increase compared to the previous quarter. However, this profit is largely attributed to other income, raising concerns about the sustainability of its business model. The company's net sales for the quarter were ₹1.68 crores, representing a decline of 6.15% from the previous quarter and a year-on-year decrease of 3.45%. This trend indicates ongoing difficulties in generating core revenue, as the sales figures have remained relatively stagnant over the past year. The operating profit margin, excluding other income, was reported at -7.74%, indicating a deeper operating loss compared to the previous quarter's marginal loss. This deterioration highlights a misalignment between the company's cost structure and its revenue generation capabilities. Moreover, the reliance on non-operating income, which accounted for a significant portion of the reported profit, raises critical questions about the long-term viability of Motor & General Finance's operations. The company has consistently faced negative operating margins across multiple quarters, suggesting structural weaknesses in its core business activities. In terms of evaluation, the company saw an adjustment in its evaluation, reflecting the market's response to its financial performance and operational challenges. The return on equity remains low at 1.06%, indicating a lack of value creation for shareholders. Overall, the financial data presents a concerning picture for Motor & General Finance Ltd, with persistent operational losses, stagnant revenue, and a heavy dependence on non-core income sources, all of which necessitate close monitoring for any signs of improvement or strategic changes.