Are Raj Oil Mills Ltd latest results good or bad?

Raj Oil Mills Ltd's latest financial results present a complex picture. In the nine-month period of FY26, the company reported a net profit of ₹4.16 crores, indicating a return to profitability after a history of losses. Revenue for the first half of FY26 showed a notable growth of 24.74%, reaching ₹76.14 crores. However, this revenue growth is juxtaposed with significant operational challenges, as evidenced by the quarterly operating profit margin, which fell to 4.60%, marking its lowest level. This suggests that while sales are expanding, the company is facing persistent cost pressures that are impacting profitability. The quarterly results for December 2025 further illustrate these challenges, with net sales declining by 10.79% compared to the previous quarter, and net profit decreasing by 20.26%. The operating profit also saw a decline of 22.54%, indicating that the company is struggling to maintain its operational efficiency. Additionally, the company's capital efficiency metrics are concerning, with an average return on equity of 0.0% and a high debt-to-equity ratio of 29.68 times, which raises questions about its financial health and ability to manage debt obligations. The absence of institutional investor interest further complicates the outlook, as it reflects a lack of confidence in the company's fundamentals. Overall, while Raj Oil Mills has shown some positive trends in revenue and profitability in the short term, the underlying operational inefficiencies and high leverage present significant risks. The company has experienced an adjustment in its evaluation, reflecting these mixed signals in its financial performance.