Are OnMobile Global latest results good or bad?

OnMobile Global's latest financial results reflect a company grappling with significant operational challenges. In the quarter ended September 2025, the company reported net sales of ₹125.33 crores, which represents a quarter-on-quarter decline of 19.77% from ₹156.22 crores in the previous quarter. However, there was a modest year-on-year growth of 1.48% compared to ₹123.50 crores in the same quarter last year. This decline in sales suggests potential difficulties in client retention or project execution.
The consolidated net profit for the quarter was ₹15.68 crores, marking a turnaround from a loss in the prior quarter, yet it shows a dramatic year-on-year decrease of 202.35%. The operating profit margin, excluding other income, stood at a low 4.99%, although this is an improvement from the previous quarter's 0.55%. The company’s reliance on other income, which surged to ₹22.38 crores—accounting for a significant portion of the operating profit—raises concerns about the sustainability and quality of its earnings.

Operational metrics indicate a weak return on equity (ROE) of 3.04% and a negative return on capital employed (ROCE) of -3.45%, highlighting inefficiencies in generating returns for shareholders. The company's balance sheet remains debt-free, which mitigates financial leverage risks but also suggests limited growth ambitions.

Overall, OnMobile Global's recent results illustrate a company facing substantial operational hurdles, with a notable dependency on non-operating income to achieve profitability. The company saw an adjustment in its evaluation, reflecting these underlying challenges and the need for sustained operational improvement to restore investor confidence.