Are Rashi Peripherals Ltd latest results good or bad?

Rashi Peripherals Ltd's latest financial results for Q3 FY26 reflect a significant year-on-year growth in both net profit and revenue, with net profit rising to ₹73.55 crores, representing a 131% increase compared to Q3 FY25. Revenue also showed strong momentum, reaching ₹4,030.41 crores, which is a 42.60% increase year-on-year. However, it is important to note that revenue experienced a sequential decline of 3.01% from the previous quarter, Q2 FY26, where it stood at ₹4,155.41 crores. The operating margin for the quarter was reported at 2.95%, which marks an improvement from the previous year's low of 0.76% but is only slightly better than the 2.49% recorded in Q2 FY26. The profit after tax margin increased to 1.85%, up from 1.13% in Q3 FY25, indicating some progress in profitability metrics, although it remains modest by industry standards. The company has also seen an adjustment in its evaluation, reflecting the market's response to these financial results. Despite the impressive year-on-year growth figures, the sequential decline in revenue and the modest margins highlight ongoing challenges in the competitive IT hardware distribution sector. The operational efficiency improvements and better cost management contributed to the sequential profit growth of 25.71% from Q2 FY26's ₹58.51 crores, suggesting a more sustainable momentum in profitability. Overall, Rashi Peripherals Ltd's Q3 FY26 results indicate a company that is experiencing robust growth in revenue and profit compared to the previous year, while also facing typical challenges associated with the IT hardware distribution business, including margin pressures and revenue volatility.