Are Shilp Gravures latest results good or bad?

Shilp Gravures' latest financial results for Q2 FY2026 present a mixed operational picture. The company reported net sales of ₹25.88 crores, reflecting a sequential growth of 4.23%, which marks the highest quarterly sales in recent periods. This growth indicates a stabilisation in demand for its specialised engraving and embossing products, as the company has now achieved seven consecutive quarters of sales exceeding ₹21 crores.
However, the net profit for the quarter was ₹1.77 crores, which represents a significant decline of 52.16% compared to the previous quarter. This drop in profitability was largely attributed to a sharp reduction in other income, which fell from ₹2.75 crores in Q1 FY2026 to just ₹0.09 crores in Q2 FY2026. The volatility in other income has been a recurring issue for Shilp Gravures, complicating the assessment of its underlying business health and earnings quality.

Despite the challenges in net profit, the company demonstrated operational resilience with an operating margin of 15.30%, an improvement from the previous quarter, indicating enhanced operational efficiency and cost management. The operating profit excluding other income reached ₹3.96 crores, suggesting that the core business operations remain robust.

Overall, while Shilp Gravures has shown strong sales performance and operational margins, the substantial decline in net profit due to fluctuating other income raises concerns about the sustainability of its earnings. The company saw an adjustment in its evaluation, reflecting the complexities in its financial performance amidst these operational trends.