Are Network People Services Technologies Ltd latest results good or bad?

The latest financial results for Network People Services Technologies Ltd reveal a complex picture characterized by strong sequential growth but significant year-on-year challenges. For the second quarter of FY26, the company reported a net profit of ₹9.84 crores, reflecting a quarter-on-quarter increase of 36.86%. Revenue for the same period reached ₹46.68 crores, marking a 38.85% growth compared to the previous quarter. This sequential recovery indicates a positive trend in operational performance following a period of decline. However, when viewed on a year-on-year basis, the results present a more troubling narrative. The revenue for Q2 FY26 is down 30.07% from ₹66.75 crores reported in Q2 FY25, and net profit has decreased by 45.79% compared to the same quarter last year. This decline highlights ongoing struggles to regain the business momentum experienced in the prior year. The company's operating margin remained stable at 29.24%, although this represents a contraction from the previous year's margin of 34.62%. The return on equity is notably strong at 43.31%, showcasing effective capital management despite the revenue volatility. In terms of financial health, Network People Services maintains a zero-debt balance sheet and a significant cash reserve, providing it with strategic flexibility. The company has also seen a recent adjustment in its evaluation, reflecting the mixed operational trends. Overall, while the sequential growth is a positive development, the substantial year-on-year declines raise concerns about the sustainability of this recovery and the company's ability to stabilize its revenue streams moving forward.