Are Nahar Capital & Financial Services Ltd latest results good or bad?

Nahar Capital & Financial Services Ltd's latest financial results for the quarter ended December 2025 reveal a complex picture of profitability and operational challenges. The company reported a consolidated net profit of ₹13.08 crores, which reflects a substantial year-on-year growth of 101.54% compared to the same quarter last year. However, this profit was largely driven by non-operating income, which constituted 64.47% of profit before tax, raising concerns about the sustainability of earnings. In contrast, the company's net sales experienced a significant quarter-on-quarter decline of 50.94%, dropping to ₹4.72 crores from ₹9.62 crores in the previous quarter. This sharp decrease highlights the volatility in Nahar Capital's core business operations, as revenues have fluctuated considerably over recent quarters, ranging from ₹3.33 crores to ₹11.66 crores. The operating margin, excluding other income, was reported at 42.58%, down from 66.22% in the previous quarter, indicating a decline in the profitability of core operations. Additionally, the return on equity (ROE) stood at a low 3.61%, suggesting inefficiencies in capital deployment relative to industry standards. Overall, while Nahar Capital's net profit figures may appear favorable at first glance, the underlying operational trends indicate significant fragility and reliance on non-operating income. The company saw an adjustment in its evaluation, reflecting these mixed results and the challenges it faces in achieving consistent revenue generation and operational stability.