Are Chartered Logistics Ltd latest results good or bad?

Chartered Logistics Ltd's latest financial results for Q2 FY26 reflect significant operational challenges. The company reported a net profit of ₹0.34 crores, which represents a substantial decline compared to the previous quarter. Revenue also fell to ₹17.39 crores, marking an 8.81% decrease quarter-on-quarter and the lowest quarterly sales figure observed in recent periods. The operational margins have come under severe pressure, with the operating profit margin excluding other income turning negative at -0.06%, a stark contrast to the positive margin of 6.29% in the prior quarter. This indicates fundamental execution challenges within the core logistics operations. Moreover, the company's reliance on other income, which contributed ₹1.42 crores, has raised concerns about the sustainability of its earnings quality, as the core operations would have reported a loss without this support. In terms of longer-term performance, the company has shown negative trends, with five-year sales growth at -9.90% and EBIT growth at -28.66%. These figures suggest a structural decline rather than temporary difficulties. The financial metrics indicate that Chartered Logistics is facing significant operational stress, with mounting leverage and inadequate returns on capital, as evidenced by an average return on equity of just 1.88%. Furthermore, the company has seen a reduction in promoter holding, which may signal diminished confidence among insiders regarding the company's future prospects. The absence of institutional ownership further complicates the outlook, as it reflects a lack of interest from professional investors. Overall, Chartered Logistics Ltd's recent results highlight a precarious financial situation characterized by declining revenues, negative operational margins, and increasing reliance on non-operating income, leading to an adjustment in its evaluation. Investors should closely monitor the company's ability to stabilize revenue and improve core profitability in the coming quarters.