Are Advik Capital Ltd latest results good or bad?

The latest financial results for Advik Capital Ltd reveal a company facing significant operational and financial challenges. In the quarter ending December 2025, the company reported a net loss of ₹20.87 crores, which marks a substantial decline compared to the previous year. Revenue for the same period turned negative at ₹-2.83 crores, indicating severe operational distress and potential accounting irregularities. This negative revenue generation is particularly alarming for a financial services company, suggesting substantial write-offs or reversals.
For the nine-month period ending December 2025, Advik Capital's sales plummeted by 97.01% year-on-year to just ₹10.25 crores, highlighting a complete collapse in its lending operations and revenue-generating capabilities. The operating profit before depreciation, interest, and tax (PBDIT) also fell drastically to ₹-22.49 crores, a stark contrast to the ₹9.29 crores reported in the same quarter last year.

The company's return on equity (ROE) has deteriorated to 4.09%, down from an average of 18.26%, reflecting a significant decline in capital efficiency. The interest coverage ratio has fallen to a deeply negative -6.28 times, indicating that the company is unable to cover its interest expenses from its operational profits, which raises serious concerns regarding its ability to meet debt obligations.

Additionally, Advik Capital's balance sheet shows current liabilities exceeding shareholder funds, raising questions about its short-term financial stability. The cash flow statement indicates a deeply negative operating cash flow of ₹-111.00 crores, further underscoring liquidity concerns.

Overall, Advik Capital's recent results indicate a critical situation with fundamental operational breakdowns, leading to an adjustment in its evaluation. The combination of negative revenue, significant losses, and liquidity challenges suggests that the company is in a precarious position that requires careful monitoring.