Are Pokarna Ltd latest results good or bad?

Pokarna Ltd's latest financial results for Q3 FY26 present a complex picture characterized by contrasting trends. The company reported a net profit of ₹20.37 crores, which reflects a significant sequential recovery of 221.80% from the previous quarter. However, this figure represents a substantial decline of 59.74% compared to the same quarter last year. Revenue for the same period was ₹134.96 crores, marking a 13.93% increase quarter-on-quarter, yet it reflects a sharp decline of 39.64% year-on-year. The operating margin improved to 30.17%, up from 20.08% in Q2 FY26, indicating some operational stabilization. Nonetheless, this margin is still below the 34.69% achieved in Q3 FY25, highlighting ongoing challenges in cost management and pricing power. Similarly, the profit after tax margin of 15.09% improved from 5.34% in the previous quarter, but it remains significantly lower than the 22.58% recorded in Q3 FY25. For the nine-month period ending December 2025, Pokarna reported a revenue of ₹424.38 crores, down 36.99% year-on-year, and a net profit of ₹54.99 crores, which is a decline of 57.09% compared to the same period last year. The operating margin for this nine-month period was 28.81%, down 497 basis points year-on-year, further emphasizing the company's struggles with profitability. The financial performance indicates a mixed outcome, with sequential improvements providing some relief, but year-on-year comparisons reveal significant challenges. The company has experienced a notable adjustment in its evaluation, reflecting the market's response to these mixed results. Overall, while there are signs of recovery in the short term, the persistent year-on-year declines across key metrics raise concerns about the sustainability of the company's performance in the current export environment.