Are Narmada Agrobase Ltd latest results good or bad?

Narmada Agrobase Ltd's latest financial results for the quarter ended September 2025 reveal a complex operational landscape. The company reported a revenue of ₹11.95 crores, reflecting a year-on-year growth of 16.25% compared to ₹10.28 crores in the same quarter last year. This growth, while notable, is juxtaposed against a significant decline in profitability metrics. The operating margin, excluding other income, contracted sharply to 10.79% from 20.04% in the previous year, indicating substantial cost pressures that have impacted the bottom line despite the revenue increase. Net profit for the quarter stood at ₹1.03 crores, which represents a decline of 20.16% year-on-year, contrasting with a much higher growth of 658.82% in the same quarter last year. This divergence highlights the challenges Narmada Agrobase faces in translating revenue growth into profit, as evidenced by the compression in both operating and PAT margins. In the half-yearly performance for H1 FY26, net sales reached ₹23.03 crores, marking an 11.43% increase from ₹20.66 crores in H1 FY25. However, net profit for the same period showed a slight decline to ₹2.05 crores from ₹2.08 crores year-on-year, reinforcing the narrative of revenue growth not effectively converting into profit expansion. Overall, Narmada Agrobase's financial results indicate a concerning trend of margin compression and profitability challenges, which require careful monitoring. The company saw an adjustment in its evaluation, reflecting the complexities of its operational performance amid a competitive landscape.