Are NGL Fine Chem Ltd latest results good or bad?

NGL Fine Chem Ltd's latest financial results for the quarter ended September 2025 reveal a complex picture of growth and challenges. The company achieved a record net sales figure of ₹120.26 crores, reflecting a year-on-year growth of 28.65%, which is an acceleration compared to the previous quarter's growth rate. This indicates a strengthening demand for its pharmaceutical ingredients. However, despite this impressive top-line expansion, the net profit reported was ₹9.63 crores, which represents a decline of 1.83% compared to the same quarter last year. The operating profit margin improved to 14.27%, up from 12.37% year-on-year, suggesting better operational efficiency. However, the profit after tax (PAT) margin saw a compression to 8.01%, down from 10.49% a year ago, highlighting the challenges in maintaining profitability amidst rising costs and competitive pressures. The company's balance sheet has also undergone significant changes, with long-term debt surging dramatically due to aggressive capital expenditures aimed at enhancing production capacity. This increase in leverage raises concerns about the company's ability to sustain profitability, particularly as interest costs have escalated significantly. Overall, while NGL Fine Chem Ltd has demonstrated strong revenue growth, the inability to translate this into sustained profit margins raises questions about operational efficiency and cost management. The company has experienced an adjustment in its evaluation, reflecting these mixed operational trends. The financial performance indicates a need for close monitoring of profitability metrics and operational strategies moving forward.