Are PMC Fincorp Ltd latest results good or bad?

The latest financial results for PMC Fincorp Ltd indicate a continuation of challenging operational trends. In Q2 FY26, the company reported net sales of ₹4.82 crores, reflecting a quarter-on-quarter decline of 26.52% and a year-on-year decrease of 30.55%. This contraction in revenue marks a significant ongoing challenge for the company, which has struggled to maintain its market position amidst broader sector growth. Net profit for the same quarter was ₹1.96 crores, down 52.08% from the previous quarter and 63.57% year-on-year. The decline in profitability is compounded by a reduction in the PAT margin, which fell to 40.66% from 62.35% in the prior quarter, indicating lower operational efficiency and increased cost pressures. The company's return on equity (ROE) stood at 6.32%, which is below average for the industry, highlighting ongoing concerns regarding capital efficiency. Additionally, the operating cash flow turned sharply negative at ₹-27.97 crores for FY25, raising liquidity management issues. The financial performance of PMC Fincorp has led to an adjustment in its evaluation, reflecting the deteriorating fundamentals and operational challenges faced by the company. The absence of institutional investor interest and the company's significant underperformance relative to its peers in the NBFC sector further underscore the difficulties it is encountering. Overall, the results suggest that PMC Fincorp is navigating a difficult landscape, with multiple indicators pointing towards a need for strategic intervention to address its declining revenue and profitability metrics.