Are Radiant Cash Management Services Ltd latest results good or bad?

Radiant Cash Management Services Ltd's latest financial results for Q3 FY26 present a mixed picture of operational performance. The company reported consolidated net sales of ₹123.88 crores, which reflects a notable sequential growth of 18.29% from ₹104.73 crores in the previous quarter, marking the highest quarterly revenue in recent history. Year-on-year, net sales also showed a modest increase of 6.89%, indicating some recovery in demand for cash logistics services. However, this revenue growth did not translate into proportional profitability. The consolidated net profit stood at ₹10.94 crores, representing a significant sequential recovery of 28.55% from ₹8.51 crores in the prior quarter. Despite this recovery, the net profit was still down 18.05% compared to ₹13.35 crores in Q3 FY25, highlighting ongoing challenges in maintaining profitability. A critical concern is the operating margin, which contracted to 12.38% from 18.79% in the same quarter last year, indicating a substantial decline in profitability. This margin compression is attributed to rising operational costs, particularly a significant increase in interest expenses, which surged by 167% year-on-year to ₹2.11 crores. The company's return on capital employed (ROCE) also fell to 14.94%, the lowest in recent periods, reflecting deteriorating capital efficiency. The financial landscape for Radiant Cash is further complicated by a notable increase in current liabilities, which rose dramatically, suggesting heightened working capital pressures. Additionally, there has been a marked decline in institutional investor participation, with a significant drop in holdings from foreign institutional investors and mutual funds, indicating a lack of confidence in the company's outlook. Overall, while Radiant Cash Management Services Ltd has achieved revenue growth, the underlying profitability challenges and rising costs present significant operational hurdles. The company saw an adjustment in its evaluation, reflecting the complexities of its current financial situation. Investors will need to monitor upcoming quarters closely to assess whether the recent revenue trends can be sustained and if profitability can be restored.