Are Supra Pacific Management Consultancy Ltd latest results good or bad?

Supra Pacific Management Consultancy Ltd's latest financial results for the quarter ended December 2025 reveal a significant growth trajectory, with net sales reaching ₹24.33 crores, marking a year-on-year increase of 104.45%. This growth is particularly notable as it represents the highest quarterly revenue in the company's history, reflecting aggressive scaling in various lending segments such as vehicle loans, gold loans, microfinance, and business lending. The company has now achieved nine consecutive quarters of revenue growth since its transition to a full-fledged non-banking financial company (NBFC). In terms of profitability, the operating profit margin (excluding other income) expanded to 54.91%, indicating effective cost management and a favorable business mix. The standalone net profit also saw a remarkable year-on-year growth of 4,080.00%, amounting to ₹2.09 crores, which suggests a strong recovery from the previous year’s performance. However, despite these impressive operational metrics, the company faces significant structural challenges. The return on equity (ROE) remains low at an average of 2.59%, which is among the weakest in the NBFC sector, indicating that shareholders are not receiving adequate returns on their investments. Additionally, the company's debt-to-equity ratio stands at approximately 3.77 times, highlighting a heavy reliance on borrowed capital that raises concerns about financial stability. Interest expenses have surged, consuming a substantial portion of revenues, which could limit future profitability expansion. The absence of institutional investor support further complicates the investment case for Supra Pacific, as it suggests skepticism about the sustainability of its growth and the quality of its earnings. The company has experienced a revision in its evaluation, reflecting the market's cautious stance despite the strong operational performance. In summary, while Supra Pacific Management Consultancy Ltd has demonstrated remarkable revenue growth and improved profitability metrics in its latest results, the underlying structural vulnerabilities, including low return ratios and high leverage, warrant careful consideration by potential investors. The company's ability to address these challenges will be crucial for its future sustainability and shareholder value creation.