Are Sejal Glass Ltd latest results good or bad?

Sejal Glass Ltd's latest financial results for the quarter ending September 2025 reflect a significant growth trajectory. The company reported net sales of ₹103.99 crores, which represents a year-on-year growth of 68.90%, showcasing robust revenue expansion compared to the previous year's performance. This growth is notable, especially as it outpaces the broader textile sector, which has faced challenges recently. The net profit for the same quarter reached ₹7.21 crores, marking a substantial year-on-year increase of 201.67%. This improvement in profitability is accompanied by a PAT margin expansion to 7.02%, up from 3.91% in the corresponding prior-year quarter, indicating enhanced operational efficiency. Additionally, the operating profit margin (excluding other income) improved to 16.18%, the highest recorded over the last twelve quarters, suggesting effective cost management and operational leverage. Sejal Glass also demonstrated strong capital efficiency, with a return on equity (ROE) of 28.77%, significantly higher than its historical average. However, the company operates with a high debt-to-equity ratio of 4.09, which raises concerns regarding its financial leverage and potential risks associated with interest payments, as interest costs surged to ₹5.76 crores in this quarter. Overall, the financial results indicate that Sejal Glass Ltd is on a strong growth path, with impressive revenue and profit figures. However, the company faces challenges related to its elevated leverage, which necessitates careful monitoring. Additionally, there has been an adjustment in its evaluation, reflecting the complexities of its financial position amidst the growth narrative.