Are Deco-Mica Ltd latest results good or bad?

Deco-Mica Ltd's latest financial results for the quarter ended September 2025 indicate significant operational challenges. The company reported a net loss of ₹0.39 crores, contrasting sharply with a profit of ₹0.06 crores in the same quarter last year. This marks a notable deterioration in profitability. Revenue also declined by 9.43% year-on-year to ₹16.43 crores, reflecting a third consecutive quarter of negative year-on-year growth. The operating margin fell to 3.53%, the lowest level recorded in recent quarters, down from 5.51% in Q2 FY24. This contraction in margins suggests difficulties in maintaining pricing power amidst rising input costs. Additionally, the return on equity (ROE) for the latest period was 6.79%, which is below industry standards, indicating challenges in generating adequate returns for shareholders. While there was a sequential revenue growth of 7.32% compared to the previous quarter, the company was unable to translate this into an improvement in net profit, highlighting underlying operational inefficiencies. The rising interest costs, which increased to ₹0.77 crores from ₹0.58 crores a year earlier, further strain the company's financial position. Overall, Deco-Mica Ltd's financial performance reveals a company grappling with significant operational hurdles, as evidenced by declining revenues, negative profitability, and compressed margins. The company saw an adjustment in its evaluation, reflecting these ongoing challenges.