Are Sujala Trading & Holdings Ltd latest results good or bad?

The latest financial results for Sujala Trading & Holdings Ltd highlight significant operational challenges. In Q2 FY26, the company reported a net profit of ₹0.18 crores, reflecting a year-on-year decline of 37.93% from ₹0.29 crores in Q2 FY25. Revenue also faced a substantial contraction, decreasing by 34.21% year-on-year to ₹0.25 crores, down from ₹0.38 crores in the same quarter last year. This marks the seventh consecutive quarter where revenue has remained below ₹0.41 crores, indicating persistent difficulties in generating consistent income. Despite a high profit after tax (PAT) margin of 72.0%, which improved from the previous quarter, this figure appears to be more a result of cost control measures rather than operational growth, as the overall revenue base continues to shrink. The return on equity (ROE) remains low at 1.31%, suggesting weak capital efficiency and minimal returns for shareholders. The company also experienced a revision in its evaluation, reflecting the ongoing concerns regarding its financial health and operational viability. The absence of institutional interest, coupled with stagnant promoter holdings at 15.57%, raises further questions about the company's governance and future prospects. Overall, the financial data indicates that Sujala Trading & Holdings Ltd is grappling with significant revenue erosion and profitability challenges, which could impact its long-term sustainability in the competitive NBFC sector.