Are XT Global Infotech Ltd latest results good or bad?

The latest financial results for XT Global Infotech Ltd indicate a complex operational landscape. In the quarter ended September 2025, the company reported consolidated net profit of ₹2.74 crores, which reflects a sequential decline from ₹2.93 crores in the previous quarter, despite a year-on-year increase. This decline in net profit occurred alongside a significant revenue growth of 93.70% compared to the same quarter last year, with net sales reaching ₹94.41 crores. However, the operational efficiency appears to be under pressure, as evidenced by the compression in operating margins. The operating margin fell to 7.31% from 16.09% in December 2024, highlighting rising cost pressures, particularly in employee expenses, which accounted for over 50% of revenues in the latest quarter. The profit after tax (PAT) margin also contracted to 3.64%, down from 7.50% in the previous year. In terms of financial performance, the company has shown strong revenue growth momentum, with net sales climbing significantly over recent quarters. However, the volatility in net profit and the decline in operating margins suggest challenges in translating revenue growth into sustainable profitability. The company has also experienced an adjustment in its evaluation, reflecting the mixed operational trends. While there is notable revenue growth, the profitability metrics raise concerns about the company's ability to maintain operational efficiency amidst rising costs. Overall, XT Global Infotech's results underscore a narrative of strong revenue expansion juxtaposed with significant challenges in profitability and operational efficiency, necessitating close monitoring of future performance to assess the sustainability of its growth trajectory.