Are Nihar Info Global Ltd latest results good or bad?

Nihar Info Global Ltd's latest financial results for Q2 FY26 reveal a significant turnaround in performance compared to previous quarters. The company reported net sales of ₹5.92 crores, reflecting a quarter-on-quarter growth of 78.85% from ₹3.31 crores in Q1 FY26. This growth is even more pronounced on a year-on-year basis, with sales up 1060.78% from ₹0.51 crores in Q2 FY25. The net profit for the quarter reached ₹1.26 crores, a remarkable increase of 1700% from ₹0.07 crores in the previous quarter and a swing from a loss of ₹0.30 crores in the same quarter last year. The operating margin also improved significantly to 22.80%, marking the highest level in at least eight quarters, compared to just 2.11% in Q1 FY26. Despite these positive headline figures, the company has faced challenges in maintaining operational consistency, as evidenced by its historical performance. The average return on capital employed (ROCE) remains negative at -34.88%, and there are concerns about the sustainability of the recent revenue growth, which may be driven by project-based contracts rather than recurring revenue streams. Additionally, the company has no institutional backing, which raises questions about investor confidence. The market cap of Nihar Info Global is relatively small at ₹6.00 crores, and the stock price declined by 2.93% following the results announcement, indicating some investor skepticism despite the strong numbers. The company also saw an adjustment in its evaluation, reflecting the mixed sentiment surrounding its financial turnaround. In summary, while Nihar Info Global Ltd has demonstrated impressive growth in revenue and profitability for Q2 FY26, underlying operational challenges and a lack of institutional support suggest that the company must navigate significant risks to sustain this momentum moving forward.