Are CHL latest results good or bad?

The latest financial results for CHL Ltd for the quarter ended September 2025 reveal significant operational challenges. The company reported net sales of ₹31.65 crores, which reflects a marginal quarter-on-quarter growth of 0.67%. However, this figure represents a year-on-year decline of 7.75%, indicating difficulties in maintaining revenue levels compared to the previous year.
In terms of profitability, CHL recorded a net loss of ₹12.04 crores, marking a substantial deterioration from the previous quarter's loss of ₹0.82 crores. This shift represents a dramatic change in the company's financial performance, with the operating profit before depreciation, interest, and tax showing a substantial loss of ₹8.45 crores, leading to an operating margin of -26.70%. This margin is the lowest the company has experienced in seven quarters, highlighting severe operational distress.

The rising employee costs, which increased to ₹10.08 crores from ₹9.55 crores in the prior quarter, now account for 31.85% of sales, further squeezing margins amidst stagnant revenue. Additionally, the company's interest expenses remained high at ₹5.14 crores, contributing to a negative interest coverage ratio of -1.64 times, raising concerns about its ability to service its debt, which stood at ₹242.41 crores.

Overall, the financial data indicates that CHL Ltd is facing acute operational distress, with critical warning signs emerging from its balance sheet and income statement. The company has seen an adjustment in its evaluation, reflecting the ongoing challenges in its operational and financial performance. Investors should closely monitor future results for any signs of stabilization or recovery.