Are V B Desai Fin. latest results good or bad?

The latest financial results for V B Desai Financial Services present a mixed picture, highlighting both strengths and challenges. In the quarter ending September 2025, the company reported a net profit of ₹0.24 crores, reflecting a 20.00% increase from the previous quarter and a substantial 166.67% rise year-on-year. This growth in profitability is noteworthy, particularly in the context of the company's operating margin, which improved significantly to 35.29% from 20.83% in the prior quarter.
However, the revenue figures tell a different story. The company experienced a decline in revenue, reporting ₹0.68 crores, which is a 29.17% decrease from the previous quarter and a 6.85% drop year-on-year. This decline marks the weakest quarterly revenue performance in recent periods, raising concerns about the sustainability of the business's operational momentum. The volatility in revenue generation, which has fluctuated between ₹0.62 crores and ₹1.04 crores over the past seven quarters, indicates challenges in securing consistent income from core business activities.

Moreover, the results reveal a significant reliance on other income, which contributed ₹0.28 crores—substantially overshadowing the core operating profit of just ₹0.04 crores. This dependency on non-operating income raises questions about the robustness of the company's primary investment banking and advisory services.

The company's return on equity (ROE) stood at 6.47%, which, while an improvement from historical levels, remains below industry standards for financial services firms. The overall financial performance indicates that while profitability has surged, the underlying revenue challenges and reliance on other income present potential risks to the company's long-term viability.

Additionally, there has been an adjustment in the company's evaluation, reflecting the complexities of its financial situation. The current operational trends suggest that V B Desai Financial Services must address its revenue generation issues to ensure sustainable growth moving forward.