Are Antelopus Selan latest results good or bad?

Antelopus Selan's latest financial results for the quarter ending September 2025 reveal significant operational challenges. The company reported net sales of ₹55.13 crores, reflecting a year-on-year decline of 20.01%, marking the lowest quarterly revenue in the past seven quarters. This decline is particularly notable when compared to the previous year's revenue of ₹68.92 crores. Additionally, the standalone net profit for the same quarter fell to ₹11.81 crores, a decrease of 41.36% from the prior year.
Despite these declines in revenue and profit, the company's operating profit margin remained relatively stable at 53.36%, although it did show a slight contraction from 55.41% a year ago. This indicates that while Antelopus Selan has managed to maintain some level of cost discipline, the overall profitability has been adversely affected by increasing depreciation charges, which have more than doubled compared to the previous year.

The first half of FY26 has been particularly challenging, with net profit standing at ₹23.03 crores, down 39.35% year-on-year. The operational metrics suggest that the company is facing significant headwinds in its core exploration and production activities. The average return on equity (ROE) of 7.45% remains below industry standards, indicating potential inefficiencies in capital deployment.

Furthermore, the balance sheet shows a mixed picture, with the company maintaining a debt-free status while experiencing increases in fixed and current assets, suggesting higher working capital requirements. Employee costs have decreased, which may reflect improved operational efficiency, but could also indicate challenges in retaining skilled personnel.

In terms of market performance, Antelopus Selan has underperformed compared to its peers and the broader market, with a notable decline of 37.10% over the past year. This underperformance highlights company-specific challenges rather than sector-wide issues.

Overall, the financial data indicates that Antelopus Selan is navigating a difficult operational landscape, with a recent adjustment in its evaluation reflecting these ongoing challenges. The company will need to address its declining revenue and profitability metrics to regain investor confidence and improve its financial standing in the coming quarters.