Are Andhra Petrochemicals Ltd latest results good or bad?

Andhra Petrochemicals Ltd's latest financial results for Q3 FY26 reveal significant operational challenges. The company reported a net profit of ₹-10.77 crores, marking a substantial loss compared to a profit of ₹2.14 crores in the previous quarter (Q2 FY26). This shift indicates a deepening profitability crisis. Revenue also saw a dramatic decline, with net sales dropping to ₹67.39 crores, reflecting a 59.80% decrease quarter-on-quarter and a 45.88% decrease year-on-year. This revenue contraction is the steepest in the company's recent history, suggesting potential disruptions in production or demand within the oxo-alcohol market. The operating margin, excluding other income, fell to -17.48%, which is the worst performance in eight quarters, indicating that the company is losing money on each unit sold. Additionally, the average return on equity (ROE) has deteriorated significantly, with the latest ROE reported at -6.48%, down from a historical average of 16.69%. This decline suggests that the company is currently destroying shareholder value rather than generating returns. The financial metrics indicate that Andhra Petrochemicals is facing a critical operational crisis, characterized by collapsing revenues, negative operating margins, and persistent losses. The company's valuation has also been affected, leading to an adjustment in its evaluation, reflecting the market's concerns regarding its future prospects. Overall, the results highlight a pressing need for operational restructuring and strategic redirection to address these fundamental weaknesses.