Are NGL Fine Chem Ltd latest results good or bad?

NGL Fine Chem Ltd has reported significant financial results for the quarter ended December 2025, showcasing strong operational performance across multiple metrics. The company achieved a consolidated net profit of ₹15.69 crores, reflecting a remarkable year-on-year growth of 1,125.78%, compared to a loss in the same quarter last year. This turnaround is indicative of a successful recovery from previous challenges. Revenue for the same quarter reached ₹127.51 crores, marking a year-on-year growth of 43.11%. This growth is particularly notable as it surpasses the previous year's modest revenue increase, demonstrating a robust demand for the company's products. The operating profit also saw a substantial rise, with an operating margin of 17.50%, up from 5.72% in the prior year, indicating improved operational efficiency and cost management. The company has shown consistent sequential growth, with net profit increasing by 62.93% quarter-on-quarter from ₹9.63 crores in the previous quarter. Revenue also grew by 6.03% compared to the prior quarter, reflecting sustained operational momentum. The nine-month revenue for FY26 has already exceeded 95.6% of the total revenue for FY25, suggesting strong performance heading into the final quarter of the fiscal year. Despite these positive results, there has been an adjustment in the company’s evaluation, reflecting the complexities of its financial landscape. The return on equity (ROE) has shown a decline in the latest half-yearly period, indicating challenges in capital efficiency despite the strong quarterly performance. Additionally, the company's historical margin volatility raises questions about the sustainability of the current margins. Overall, NGL Fine Chem Ltd's latest results indicate a significant recovery and operational improvement, positioning the company favorably within the pharmaceutical intermediates sector, although ongoing monitoring of margin sustainability and capital efficiency will be essential moving forward.