Are Brady & Morris Engineering Company Ltd latest results good or bad?

Brady & Morris Engineering Company Ltd's latest financial results for the quarter ending September 2025 reveal significant challenges across key operational metrics. The company reported net sales of ₹12.99 crores, reflecting a contraction of 34.53% quarter-over-quarter (QoQ) and a decline of 44.53% year-over-year (YoY). This marks the lowest quarterly revenue figure in the available data series, indicating potential issues with order flows and execution. Net profit for the same quarter was ₹0.48 crores, which represents a sharp decrease of 68.83% QoQ and 80.25% YoY. This decline in profitability is concerning, especially when compared to the previous quarter's net profit of ₹1.54 crores. The operating profit before depreciation, interest, tax, and other income (PBDIT) also saw a dramatic drop to ₹0.56 crores from ₹2.10 crores in the preceding quarter, translating to a 73.33% decline. Consequently, the operating margin fell to 4.31%, marking the lowest level in recent quarters and a significant reduction from 10.58% in the prior quarter. The company's profit after tax (PAT) margin decreased to 3.70%, down from 7.76% in the previous quarter, further illustrating the operational difficulties faced. The financial performance highlights a concerning trend of revenue contraction and margin compression, raising questions about the sustainability of the company's business model in the current environment. Additionally, the company has seen a revision in its evaluation, reflecting the operational challenges and financial pressures it is currently experiencing. The operational difficulties are compounded by a notable decline in return ratios, with the half-yearly return on capital employed (ROCE) dropping to 13.65%, significantly below historical averages. In summary, Brady & Morris Engineering Company Ltd's recent results indicate a critical need for management attention to address the underlying operational challenges and restore financial stability. The significant declines in sales, profit, and margins underscore the urgency for strategic initiatives to improve performance moving forward.