Are NESCO latest results good or bad?

NESCO's latest financial results for Q2 FY26 indicate a mixed operational performance. The company reported net sales of ₹193.34 crores, reflecting a sequential growth of 0.69% from the previous quarter, which is an improvement compared to the decline of 7.03% observed in Q1 FY26. However, the year-on-year growth of 2.31% signals challenges in accelerating revenue momentum.
Net profit for the quarter stood at ₹96.14 crores, benefiting from a sequential increase of 8.49%, contrasting with a year-on-year decline of 8.54%. This suggests that while the company has made progress compared to the prior quarter, it is facing difficulties in maintaining profitability compared to the same period last year.

Operating margins, excluding other income, were reported at 57.07%, showing a sequential improvement of 152 basis points. However, this figure represents a notable contraction of 383 basis points year-on-year, highlighting ongoing cost pressures and competitive challenges in the commercial services sector.

The company's PAT margin improved to 49.73%, up 358 basis points sequentially and 36 basis points year-on-year, indicating some resilience in profitability metrics despite the overall margin compression.

Overall, NESCO's results reflect a gradual recovery from prior declines, but the year-on-year comparisons reveal significant operational challenges. The company has experienced an adjustment in its evaluation, reflecting these mixed results and the underlying pressures on growth and margins.