Are Alphageo (India) Ltd latest results good or bad?

Alphageo (India) Ltd's latest financial results for Q3 FY26 reveal a complex operational landscape characterized by significant revenue growth juxtaposed with continued losses. The company reported net sales of ₹16.84 crores, reflecting a year-on-year increase of 50.90% and a quarter-on-quarter surge of 223.85% from ₹5.20 crores in Q2 FY26. However, despite this top-line expansion, Alphageo posted a consolidated net loss of ₹5.90 crores, which represents a slight narrowing of losses compared to ₹7.85 crores in the same quarter last year, but a marginal increase from ₹5.72 crores in the previous quarter. The operating performance remains concerning, with an operating margin of negative 33.73%, indicating ongoing challenges in managing operational costs effectively. This margin, while an improvement from the significantly negative 78.46% in Q2 FY26, still highlights the company's struggle to achieve profitability amidst high fixed costs and project-based revenue volatility typical of the seismic services sector. The financial data also indicates that Alphageo's reliance on other income, which amounted to ₹2.25 crores in Q3 FY26, is critical in offsetting operational losses, yet it underscores a dependency on non-core income streams rather than sustainable business profitability. Additionally, the company's return on equity (ROE) and return on capital employed (ROCE) metrics remain negative, reflecting inefficiencies in capital utilization and value generation. Overall, the results illustrate that while Alphageo has managed to increase its revenue significantly, the underlying operational challenges persist, raising questions about the sustainability of its business model. The company saw an adjustment in its evaluation, reflecting the market's response to these mixed financial indicators and ongoing operational difficulties.