Are National General Industries Ltd latest results good or bad?

National General Industries Ltd's latest financial results for the quarter ended December 2025 present a complex picture of performance. The company reported net sales of ₹2.73 crores, reflecting a quarter-on-quarter growth of 29.38%, which is a continuation of a trend of increasing revenues. However, this growth in sales has not translated into operational profitability, as the company recorded an operating loss of ₹0.31 crores, resulting in a negative operating margin of -11.36%. This marks the third consecutive quarter of core operational losses, raising concerns about the sustainability of its business model. The reported net profit of ₹0.15 crores was achieved primarily through other income, which accounted for a significant portion of total revenues. This dependency on non-operating income highlights a fundamental weakness in the company's core operations, as the underlying manufacturing activities continue to struggle. The profit before tax was also supported by this other income, which exceeded the operating loss, indicating that without it, the company would have faced another quarterly loss. While there was a notable improvement in the PAT margin, which rose to 5.49% from a negative position in the previous quarter, this improvement is overshadowed by the persistent operational challenges. The gross profit margin showed some recovery to 9.52%, suggesting potential pricing power or cost management gains, yet the overall operational metrics remain concerning. In terms of evaluation, the company saw an adjustment in its evaluation, reflecting the ongoing challenges it faces despite some positive sales growth. The financial performance indicates that while there are superficial signs of recovery in sales, deeper operational issues persist, making the overall outlook for National General Industries Ltd cautious.