Are N G Industries latest results good or bad?

N G Industries' latest financial results reflect a complex operational landscape characterized by significant volatility and underlying challenges. In the quarter ended September 2025, the company reported net sales of ₹4.05 crores, which represents a sequential growth of 9.46% compared to the previous quarter. However, this figure marks a decline of 7.53% when compared year-on-year to ₹4.38 crores in September 2024.
The net profit for the same quarter was ₹0.43 crores, showing a notable sequential increase of 126.32% from ₹0.19 crores in June 2025. Yet, this figure is starkly lower than the ₹2.97 crores reported in the same quarter last year, indicating an 85.52% decline year-on-year. This dramatic drop in profitability raises concerns about the company's ability to maintain sustainable growth.

Operating margins, excluding other income, have also come under pressure, decreasing to 8.15% from 9.19% in the previous quarter, reflecting rising cost pressures that the company has struggled to manage effectively. Additionally, the company's reliance on other income, which contributed ₹0.43 crores, surpassing the operating profit of ₹0.33 crores, highlights a worrying dependency on non-core revenue sources.

Overall, N G Industries is facing operational difficulties, as evidenced by its declining revenue trajectory and profit volatility. The company has seen an adjustment in its evaluation, reflecting these ongoing challenges. The financial performance indicates that while there are some sequential gains, the year-on-year comparisons reveal a troubling pattern that raises questions about the sustainability of its business model and operational effectiveness.