Are Thomas Scott India Ltd latest results good or bad?

Thomas Scott India Ltd's latest financial results for the quarter ended December 2025 highlight a notable operational momentum, with net sales reaching ₹66.25 crores, reflecting a sequential growth of 16.37% and a year-on-year increase of 45.93%. This marks the highest quarterly revenue in the company's history, indicating robust demand for its retail offerings. The net profit for the same period was ₹4.97 crores, showing a quarter-on-quarter growth of 5.30% and a significant year-on-year increase of 65.67%. However, while the revenue growth is commendable, there are emerging concerns regarding profitability. The operating profit margin has contracted to 11.82%, down from 14.86% in the previous quarter, indicating pressure on margins despite the top-line growth. Similarly, the profit after tax (PAT) margin decreased to 7.50% from 8.29% in the prior quarter, suggesting that the revenue expansion has come at the expense of profitability optimization. The company has also experienced a shift in its evaluation, reflecting the market's reassessment of its growth expectations amid these margin pressures. Additionally, the absence of institutional interest, particularly with foreign institutional investors completely exiting their positions, raises questions about the sustainability of the current valuation levels. Overall, Thomas Scott's financial performance showcases strong revenue growth and operational efficiency, yet the challenges related to margin compression and the lack of institutional support warrant careful monitoring as the company navigates its growth trajectory in a competitive retail landscape.