Are XPRO India latest results good or bad?

XPRO India has reported significant challenges in its latest financial results for the quarter ended September 2025. The company experienced a net sales decline of 10.50% year-on-year, falling to ₹119.91 crores, which is a stark contrast to the previous year's growth of 21.83%. This revenue contraction is compounded by a sharp drop in net profit, which decreased by 50.00% to ₹4.97 crores compared to the same quarter last year.
The operational metrics reveal further difficulties, with the operating profit before depreciation, interest, tax, and other income (PBDIT) declining by 45.26% to ₹7.33 crores, resulting in an operating margin of 6.11%, down from 9.99% a year ago. This margin compression indicates challenges in pricing power and cost management within the competitive packaging sector.

Additionally, the company's reliance on non-operating income has raised concerns about the sustainability of its earnings. In the latest quarter, other income constituted a substantial 60.75% of profit before tax, highlighting a dependency that may mask underlying operational weaknesses.

The financial performance has prompted an adjustment in the company's evaluation, reflecting the deteriorating fundamentals and operational challenges. The balance sheet shows a significant increase in long-term debt, which surged to ₹200.58 crores, raising questions about financial stability amid declining profitability.

Overall, XPRO India's latest results illustrate a company grappling with severe operational challenges, marked by declining revenues, profit erosion, and increasing leverage, which collectively signal a concerning outlook for its future performance.