Are Nitta Gelatin India Ltd latest results good or bad?

Nitta Gelatin India Ltd's latest financial results for the quarter ended December 2025 reflect a notable operational performance. The company reported net sales of ₹149.72 crores, achieving an 8.44% growth compared to the previous quarter and an 11.20% increase year-on-year. This marks the highest quarterly revenue in the company's recent history, indicating strengthening demand conditions and possibly market share gains. The operating margins, excluding other income, saw a significant rebound to 25.29%, up from 18.64% in the previous quarter. This improvement suggests enhanced cost management and pricing power, contributing to a substantial increase in operating profit before depreciation, interest, and tax (PBDIT) to ₹37.87 crores from ₹25.74 crores in the prior quarter. The net profit for the quarter reached ₹25.57 crores, reflecting a 38.74% quarter-on-quarter growth and a 4.62% increase year-on-year. Despite these positive results, the company faces challenges related to margin volatility, as operating margins have fluctuated significantly over recent quarters. The year-on-year profit growth of 4.62% against a revenue growth of 11.20% raises questions about the sustainability of the recent margin improvements. Additionally, the company's reliance on other income, which has shown volatility, adds another layer of uncertainty regarding earnings quality. Overall, while Nitta Gelatin India Ltd demonstrated strong operational execution in this quarter, concerns regarding the sustainability of its margin improvements and the volatility of raw material costs remain pertinent. The company saw an adjustment in its evaluation, reflecting the mixed signals from its financial performance. Investors may want to monitor future quarterly results closely to assess the sustainability of this performance.