Are Sonu Infratech Ltd latest results good or bad?

Sonu Infratech Ltd's latest financial results present a complex picture of its operational performance. In Q2 FY26, the company reported net sales of ₹33.17 crores, reflecting a sequential decline of 14.44% from the previous quarter, which raises concerns about potential project execution challenges. However, the net profit for the same quarter was ₹2.71 crores, showing a slight decrease of 1.45% quarter-on-quarter, indicating that the company has managed to maintain profitability despite revenue pressures. On a more positive note, the operating margin improved significantly to 20.47%, up from 17.26% in the previous quarter, highlighting effective cost management and operational efficiency. The PAT margin also saw an increase, reaching 8.17% compared to 7.09% in the prior quarter, suggesting that the company is capable of expanding margins even in a challenging revenue environment. In the subsequent quarter ended December 2025, Sonu Infratech showed signs of recovery with net sales growth of 1.38% and a notable increase in standalone net profit by 14.57%. The operating profit margin further improved to 22.96%, indicating a positive trend in operational performance. Overall, while Sonu Infratech has demonstrated resilience in maintaining profitability and improving margins, the significant revenue volatility and execution challenges remain critical areas for monitoring. The company has experienced an adjustment in its evaluation, reflecting the mixed operational trends observed in its recent financial performance.