Are Supertex Industries Ltd latest results good or bad?

Supertex Industries Ltd's latest financial results for Q2 FY26 indicate a complex operational landscape. The company reported a significant quarterly revenue of ₹20.66 crores, reflecting a year-on-year growth of 66.34% compared to ₹12.42 crores in Q2 FY25. This growth is notable, especially when considering the drastic sequential increase of 152.57% from ₹8.18 crores in Q1 FY26. However, it is essential to contextualize this recovery against the backdrop of a challenging half-year performance, where total revenues for H1 FY26 declined by 30.87% to ₹28.84 crores compared to the same period last year. On the profitability front, Supertex returned to a net profit of ₹0.62 crores in Q2 FY26, a notable turnaround from a loss of ₹0.37 crores in the previous quarter. This resulted in a PAT margin of 3.00%, contrasting with a negative margin of -4.52% in Q1 FY26. The operating margin also showed improvement, reaching 8.13%, the highest in seven quarters, up from 3.55% in Q1 FY26. Despite these positive indicators in the latest quarter, the overall financial health of Supertex remains concerning. The company continues to face operational volatility, as evidenced by its inconsistent quarterly performance and a trailing twelve-month loss. Additionally, the low promoter holding of 13.29% raises governance concerns, and the absence of institutional investment signals a lack of confidence in the company's long-term prospects. The company saw an adjustment in its evaluation, reflecting the mixed signals from its recent financial performance. While the Q2 results demonstrate a recovery in certain metrics, the persistent decline in half-yearly sales and the fragility of profitability suggest that the path to sustainable growth remains uncertain. The operational challenges, combined with high leverage and minimal returns on equity, underline the risks associated with investing in Supertex Industries Ltd at this time.