Are STEL Holdings latest results good or bad?

STEL Holdings, a microcap entity in the Non-Banking Financial Company (NBFC) sector, has reported its financial results for the quarter ending June 2025, which reflect significant operational challenges. The company's Profit After Tax (PAT) for this quarter is recorded at Rs 0.35 crore, marking a notable decline of 91.2% compared to the average PAT of Rs 3.97 crore observed over the previous four quarters. This decline raises concerns regarding the company's financial health and near-term performance.
In terms of net sales, STEL Holdings experienced a substantial decline of 96.50% in the quarter ended June 2025, contrasting sharply with a growth of 4,380.00% in the preceding quarter of March 2025. The consolidated net profit also mirrored this trend, showing a decrease of 96.49% compared to a significant increase of 10,988.89% in March 2025.

The operating profit (PBDIT) excluding other income similarly saw a decline of 98.20%, down from a growth of 13.34% in the prior quarter. The operating profit margin, which was at 51.06% in March 2025, has also faced a reduction of 48.20%.

In light of these results, there has been an adjustment in the company's evaluation, reflecting the challenges faced in the current financial landscape. Overall, the financial data indicates a period of considerable difficulty for STEL Holdings, emphasizing the need for careful monitoring of its operational performance moving forward.