Are NDR Auto Components Ltd latest results good or bad?

NDR Auto Components Ltd reported its financial results for Q2 FY26, showcasing a notable year-on-year growth in net sales, which reached ₹199.96 crores, reflecting a 14.77% increase compared to the same quarter last year. Sequentially, this represents a 7.96% improvement from the previous quarter. The company's consolidated net profit also demonstrated a strong performance, amounting to ₹14.85 crores, which is a 24.37% increase year-on-year and a 9.19% increase from the prior quarter. The operating margin for the quarter stood at 10.89%, marking the highest level in recent quarters and indicating effective cost management and operational leverage. This margin reflects a 93 basis points improvement from the same quarter last year. The company's return on equity (ROE) for FY25 was reported at 17.48%, suggesting efficient use of shareholder capital. However, the financial landscape is complex, as the company is navigating a bearish technical trend and elevated valuation multiples, which may present challenges for both existing shareholders and potential investors. The recent quarterly results also indicate a moderation in growth momentum, with a sequential decline in net sales growth to 4.17% and a net profit growth of 2.29% in the subsequent quarter ending December 2025. Overall, NDR Auto Components Ltd has demonstrated commendable operational strength and profitability metrics, but the adjustment in its evaluation highlights the need for careful consideration of market conditions and valuation dynamics.