Are Archies latest results good or bad?

Archies has reported its financial results for the quarter ending June 2025, which reveal several concerning trends. The net sales for this quarter were Rs 13.74 crore, reflecting a notable decline of 21.1% compared to the average net sales of Rs 17.43 crore over the previous four quarters. This downward trend raises concerns regarding the company's near-term outlook.
The operating profit (PBDIT) also showed a negative trend, falling to Rs -1.65 crore, which is the lowest level in five quarters. This resulted in an operating profit margin of -12.01%, indicating challenges in operational efficiency. Furthermore, the operating profit to interest ratio reached its lowest point in five quarters at -1.62 times, suggesting a deteriorating ability to manage interest payments effectively.

In terms of profitability, the profit before tax (PBT) was recorded at Rs -4.03 crore, marking the lowest figure in five quarters. Notably, non-operating income constituted a significant portion of PBT, at 2,019.05%, indicating a reliance on non-business activities, which may not be sustainable over time.

Additionally, the company experienced a revision in its evaluation during this reporting period. Overall, the financial data highlights significant challenges for Archies, particularly in sales performance and profitability metrics.