Are Permanent Magnets Ltd latest results good or bad?

The latest financial results for Permanent Magnets Ltd for Q3 FY26 reveal a mixed performance. The company reported a net profit of ₹2.25 crores, reflecting a year-on-year growth of 10.29%. However, this represents a decline of 5.06% compared to the previous quarter. Revenue for the same period reached ₹57.02 crores, marking a significant year-on-year increase of 15.54% and a sequential growth of 16.06% from the prior quarter, indicating strong sales momentum. The operating margin improved to 18.43%, a notable increase from 12.75% in the same quarter last year, showcasing enhanced operational efficiency. Nonetheless, the profit after tax (PAT) margin saw a slight contraction to 3.95%, down from 4.13% year-on-year, which raises concerns about profitability sustainability amidst rising costs and competitive pressures. The financial performance illustrates the challenges faced by the company, particularly in managing costs and maintaining profitability in a volatile market environment. The high tax rate of 51.82% in Q3 FY26 significantly impacted net profit, highlighting an area that requires further clarification from management. Overall, while Permanent Magnets Ltd demonstrated robust revenue growth and improved operating margins, the decline in net profit and PAT margin, along with the high tax burden, suggest underlying challenges that could affect future performance. The company experienced an adjustment in its evaluation, reflecting these mixed operational trends.