Are VTM Ltd latest results good or bad?

VTM Ltd's latest financial results for the quarter ending December 2025 reveal significant operational challenges. The company reported net sales of ₹99.95 crores, reflecting an 11.20% sequential growth from the previous quarter. However, this figure represents a year-on-year decline of 3.45%, indicating a contraction in revenue compared to the same period last year. Net profit for the quarter was ₹3.38 crores, which is a notable recovery of 45.69% from the previous quarter. Despite this sequential improvement, it marks a drastic year-on-year decline of 81.43%, highlighting severe profitability issues. The operating margin, excluding other income, stood at 7.02%, which is a slight improvement from the previous quarter but a significant drop of 1,889 basis points compared to the same quarter last year. Similarly, the profit after tax (PAT) margin was reported at 3.38%, showing a year-on-year decrease of 1,420 basis points. The financial performance indicates that while VTM Ltd has managed to achieve some sequential growth in revenue and profit, the overall trend remains concerning due to the substantial year-on-year declines in both net profit and margins. Furthermore, the company has experienced rising operational costs, including employee expenses and depreciation, which have contributed to the pressure on profitability. In light of these results, VTM Ltd has seen an adjustment in its evaluation, reflecting the underlying operational difficulties and market perceptions. The company’s financial trajectory suggests a need for careful monitoring of its operational efficiencies and margin sustainability moving forward.