Are Soma Textiles latest results good or bad?

Soma Textiles & Industries has released its financial results for the quarter ending June 2025, revealing a complex operational landscape. The company's net sales for the latest six months reached Rs 5.92 crore, reflecting a year-on-year growth of 144.63%. However, the quarterly comparison shows a decline in net sales of 47.03% from the previous quarter, which may raise concerns about recent sales performance.
The profit after tax (PAT) for the quarter stood at Rs 2.36 crore, indicating a significant increase compared to the average PAT of the previous four quarters, which was Rs -0.08 crore. This marks the highest PAT recorded in the last five quarters, suggesting a notable turnaround in profitability. Nonetheless, the operating profit before depreciation, interest, and tax (PBDIT) was reported at Rs -2.34 crore, the lowest in the last five quarters, highlighting challenges in operational efficiency.

Additionally, the profit before tax (PBT) was recorded at Rs -2.54 crore, also at its lowest in the observed period. A noteworthy aspect is that non-operating income accounted for 207.63% of the PBT, with a high figure of Rs 4.90 crore, which raises questions about the sustainability of this income source.

Overall, while Soma Textiles has shown remarkable growth in PAT year-on-year, the decline in net sales and operating profit metrics suggests underlying operational challenges. The company saw an adjustment in its evaluation, reflecting the mixed results of its financial performance.