Are Delta Manufacturing Ltd latest results good or bad?

Delta Manufacturing Ltd's latest financial results for Q3 FY26 reveal a complex operational landscape characterized by both revenue growth and persistent losses. The company reported net sales of ₹15.53 crores, reflecting a quarter-on-quarter growth of 12.54%, which marks the highest quarterly revenue since March 2025. However, this growth in sales has not translated into profitability, as the consolidated net loss widened to ₹5.20 crores, a significant deterioration compared to the previous quarter. The operating margin, excluding other income, stood at 5.28%, which is a decline from 7.54% in Q2 FY26, indicating increasing cost pressures, particularly from employee expenses. The profit before tax also turned negative, reaching ₹0.87 crores, compared to a loss of ₹0.58 crores in the prior quarter. The company's profit after tax margin fell deeper into the negative territory at -8.82%, compared to -4.06% in Q2 FY26. Overall, the results underscore Delta Manufacturing's ongoing operational challenges, with negative profit margins persisting despite a modest increase in revenue. The company continues to face structural weaknesses, as evidenced by a five-year sales compound annual growth rate (CAGR) of -10.06%, and a return on capital employed (ROCE) averaging -9.42%. The financial position remains under pressure, with shareholder funds declining significantly and a high debt-to-equity ratio of approximately 3.07x. In light of these results, Delta Manufacturing experienced an adjustment in its evaluation, reflecting the ongoing struggles in its operational performance and financial health. The absence of institutional investor interest further complicates its outlook, suggesting limited confidence in the company's ability to navigate its current challenges.