Are Secmark Consultancy Ltd latest results good or bad?

Secmark Consultancy Ltd's latest financial results for Q2 FY26 indicate a notable recovery from the previous quarter's losses. The company reported a net profit of ₹0.86 crore, a significant turnaround from a loss of ₹0.90 crore in Q1 FY26. This improvement is accompanied by a quarter-on-quarter revenue growth of 40.30%, rising to ₹9.33 crore from ₹6.65 crore in the prior quarter. The operating margin also saw a substantial recovery, reaching 21.01% compared to -5.71% in Q1 FY26. Despite these positive quarterly results, the year-on-year performance reflects challenges, with revenue growth of only 6.14% from ₹8.79 crore in Q2 FY25. The first half of FY26 showed a combined revenue of ₹15.98 crore, marking a 21.92% increase from ₹13.11 crore in H1 FY25, but the net profit for this half-year was a slight loss of ₹0.04 crore, contrasting with a profit of ₹0.37 crore in H1 FY25. The company's financial performance highlights significant quarterly volatility, with revenue fluctuating between ₹5.83 crore and ₹12.50 crore over the past seven quarters. The latest results suggest that while there has been a recovery in Q2, the company faces ongoing challenges in maintaining consistent profitability and revenue stability. Additionally, Secmark Consultancy has experienced an adjustment in its evaluation, reflecting the mixed signals from its financial performance. The company's debt-free balance sheet and historical growth rates provide a foundation for potential future stability, but the extreme earnings volatility and lack of recurring revenue streams remain key concerns for investors.