Are COSCO (India) Ltd latest results good or bad?

COSCO (India) Ltd's latest financial results for the quarter ended September 2025 reflect significant operational challenges. The company reported a net sales figure of ₹37.27 crores, which represents a decline of 25.52% compared to the previous quarter. This drop is indicative of typical seasonal weakness in the sports goods segment, compounded by underlying demand headwinds, as the year-on-year sales also fell by 2.33%. The operating profit margin turned negative at -0.40%, a stark contrast to the positive margin of 5.28% recorded in the prior quarter. This shift highlights a concerning trend in profitability, as the operating profit before depreciation, interest, and tax also fell to ₹-0.15 crores from ₹2.64 crores in the previous quarter. The net loss for the quarter amounted to ₹1.43 crores, marking a substantial deterioration from a profit of ₹0.55 crores in the preceding quarter. Furthermore, the company's return on equity (ROE) has declined to -3.70%, indicating a loss of shareholder value. The financial structure appears strained, with a high debt-to-EBITDA ratio of 6.15 times and a net debt-to-equity ratio of 1.28 times, suggesting significant leverage challenges. The interest coverage ratio has also fallen to -0.14 times, reflecting difficulties in servicing debt obligations from operational profits. In light of these results, COSCO (India) has experienced an adjustment in its evaluation, reflecting the deteriorating financial trends and operational metrics. The company faces a critical need for operational improvements and margin recovery to restore investor confidence and address its current financial challenges.