Are Vistar Amar Ltd latest results good or bad?

Vistar Amar Ltd's latest financial results for Q3 FY26 reveal a significant turnaround in performance, marked by a dramatic increase in both revenue and net profit. The company reported net sales of ₹65.93 crores, reflecting a quarter-on-quarter growth of 484.49% compared to ₹11.28 crores in the previous quarter. This surge translates to a year-on-year revenue growth of 657.82%, indicating a strong recovery from the prior year's figures. The net profit for the quarter was ₹6.47 crores, a substantial recovery from a loss of ₹0.40 crores in Q2 FY26, showcasing an impressive growth of 1,717.50%. Additionally, the operating margin improved to 12.76%, up from 8.51% in the previous quarter, suggesting enhanced operational efficiency. The profit after tax (PAT) margin also turned positive at 9.81%, a notable recovery from the negative margin of -3.55% in Q2 FY26. Despite these positive quarterly results, Vistar Amar Ltd continues to face underlying challenges. The company has experienced extreme revenue volatility over the past six quarters, with sales fluctuating significantly, raising concerns about the sustainability of its business model. Furthermore, the company reported negative operating cash flow of ₹10.00 crores in FY25, highlighting ongoing cash flow issues. In terms of evaluation, Vistar Amar Ltd saw an adjustment in its evaluation, reflecting the complexities of its financial situation. The broader context indicates that while the recent quarterly performance is commendable, it does not fully mitigate the structural challenges and historical performance issues the company faces. Investors should remain cautious as the company navigates these operational hurdles while striving for consistent performance.