Are Ashnoor Textile Mills Ltd latest results good or bad?

The latest financial results for Ashnoor Textile Mills Ltd for the quarter ending September 2025 indicate significant operational challenges. The company reported net sales of ₹29.45 crores, which reflects a notable decline of 26.08% compared to the previous quarter and a 33.81% decrease year-on-year. This marks the lowest quarterly revenue in recent periods, suggesting persistent demand headwinds in its key export markets, particularly in the United States hospitality sector. Net profit for the same quarter was ₹1.81 crores, representing a substantial decline of 60.99% quarter-on-quarter and 73.43% year-on-year. The profit after tax margin decreased to 6.15%, down from 11.65% in the previous quarter and 15.31% in the same quarter last year. This compression in margins indicates difficulties in maintaining pricing power and operational efficiency amidst declining sales volumes. The operating margin, reported at 16.16%, also saw a reduction of 73 basis points from the previous quarter and 126 basis points year-on-year. These figures suggest a concerning trend of declining operational efficiency and profitability. The company has experienced a revision in its evaluation, reflecting the deteriorating fundamentals and negative financial trends observed in these results. The balance sheet shows a debt-to-equity ratio of 0.35, indicating conservative leverage, but the declining return on equity (ROE) and return on capital employed (ROCE) suggest challenges in generating adequate returns from capital deployed. Overall, Ashnoor Textile Mills Ltd's latest results highlight significant operational difficulties, with multiple key metrics at or near multi-quarter lows, raising concerns about the company's future performance and stability in the competitive textile export sector.