Are Sahara Housing Fina Corporation Ltd latest results good or bad?

Sahara Housing Fina Corporation Ltd's latest financial results for the quarter ended December 2025 reveal ongoing challenges for the company. The net profit for this quarter was ₹0.09 crores, which reflects a decline of 18.18% year-on-year. This marks a modest recovery from a loss in the previous quarter, yet it remains below the profit level reported in the same quarter last year. Revenue for the same period was ₹1.70 crores, indicating a significant contraction of 17.87% compared to the previous year. This decline is part of a troubling trend, as revenues have consistently decreased over several quarters, raising concerns about the company's operational viability. The operating margin stood at 34.71%, which, while showing a sequential improvement from the previous quarter, is still lower than the margin recorded in the same quarter last year. The company's return on equity (ROE) remains notably low at 0.93%, suggesting that it is generating minimal returns on shareholder capital. This is concerning, especially when compared to industry peers, which typically achieve higher ROE figures. Additionally, the company's capital efficiency metrics, including a return on capital employed (ROCE) of 4.06%, indicate challenges in generating adequate returns from its capital base. Overall, Sahara Housing Fina's financial performance continues to reflect structural weaknesses, characterized by declining revenues, compressed margins, and low returns on equity. The company has seen an adjustment in its evaluation, underscoring the need for strategic initiatives to address these ongoing issues and improve its competitive positioning within the housing finance sector.