Are Shree Hari Chemicals Export Ltd latest results good or bad?

Shree Hari Chemicals Export Ltd reported notable financial results for the quarter ended September 2025. The company achieved a significant net sales figure of ₹74.49 crores, reflecting a dramatic year-on-year growth of 105.32% and a quarter-on-quarter increase of 206.29%. This surge in revenue marks the highest quarterly sales recorded by the company, indicating strong operational performance during this period.
Net profit for the same quarter stood at ₹3.53 crores, which is a substantial turnaround from a loss in the previous quarter, showcasing a year-on-year increase of 57.59% and a remarkable quarter-on-quarter growth of 311.38%. However, despite these positive profit figures, the operating margin experienced compression, reported at 7.09%, down from 10.58% in the previous year. This margin pressure is attributed to rising costs that have outpaced revenue growth, raising concerns about the sustainability of profitability.

The return on equity (ROE) was recorded at 10.73%, which is below the industry standards, suggesting that the company is not generating optimal returns on shareholder capital. Furthermore, the company’s balance sheet reflects a net debt-to-equity ratio of 0.32, indicating relatively low financial leverage, although the working capital position requires careful monitoring due to recent fluctuations in trade payables.

Overall, while Shree Hari Chemicals has demonstrated strong revenue and profit growth in the latest quarter, the volatility in its earnings and the compression of margins raise questions about the consistency and sustainability of its operational performance. The company saw an adjustment in its evaluation, reflecting these mixed operational trends.