Are Simplex Castings Ltd latest results good or bad?

The latest financial results for Simplex Castings Ltd reveal a mixed operational performance. For the nine-month period ending December 2025, the company reported a net profit of ₹15.08 crores, reflecting a year-on-year growth of 30.56%. Additionally, the half-yearly revenue for FY26 reached ₹102.94 crores, indicating a growth of 33.17%. These figures highlight the company's ability to expand its topline effectively. However, the quarterly results for December 2025 present a contrasting narrative. The company experienced a decline in net sales by 0.81% compared to the same quarter in the previous year, alongside a significant drop in standalone net profit by 24.32%. Operating profit before depreciation, interest, and tax (PBDIT) also fell by 25.51%, indicating operational pressures that revenue growth alone could not mitigate. Furthermore, interest costs rose, which has added to the challenges faced by the company. Despite these difficulties, Simplex Castings has demonstrated strong capital efficiency, with a return on equity (ROE) of 35.65% and a return on capital employed (ROCE) of 21.03%. These metrics suggest effective management in generating returns on shareholder capital, even amidst operational challenges. Overall, while Simplex Castings has shown impressive revenue growth and a significant turnaround from previous losses, the recent quarterly performance raises concerns about profitability and operational sustainability. The company saw an adjustment in its evaluation, reflecting these mixed results and the underlying challenges.