Are Shivalik Rasayan latest results good or bad?

Shivalik Rasayan's latest financial results for the quarter ending September 2025 present a mixed picture. The company reported consolidated net sales of ₹93.84 crores, reflecting a year-on-year growth of 13.83%, which indicates a robust top-line performance compared to the previous year. However, this growth in sales did not translate into profitability, as the consolidated net profit fell to ₹3.05 crores, marking a decline of 23.94% year-on-year. This decline in profit raises concerns about the company's ability to maintain its margins amidst increasing operational costs.
The operating margin, excluding other income, was recorded at 12.82%, which shows a slight improvement from the previous quarter but is significantly lower than the 14.26% achieved in the same quarter last year. This indicates ongoing challenges with margin compression, particularly due to rising employee costs that have outpaced revenue growth.

Additionally, the company's return on equity (ROE) has been weak, averaging 5.85%, with the latest figure dropping to 3.16%. This suggests a concerning trend in capital efficiency and shareholder value creation. Despite a reduction in long-term debt, the overall financial health appears to be under pressure, especially given the negative operating cash flow reported.

Overall, while Shivalik Rasayan has demonstrated strong revenue growth, the decline in profitability and concerns over operational efficiency highlight significant challenges. The company has experienced an adjustment in its evaluation, reflecting these operational dynamics and financial results.