Are E-Land Apparel Ltd latest results good or bad?

E-Land Apparel Ltd's latest financial results for Q3 FY26 indicate significant operational challenges. The company reported a net profit of -₹12.48 crores, a stark contrast to a profit of ₹3.13 crores in the same quarter last year. Revenue for the quarter was ₹65.99 crores, reflecting a year-on-year decline of 1.87% from ₹67.25 crores. While there was a notable quarter-on-quarter increase in net sales of 95.53% from ₹33.75 crores in Q2 FY26, this growth is overshadowed by the year-on-year revenue drop. The operating margin has sharply declined to -14.43%, down from a positive 6.35% in Q3 FY25, indicating severe issues with cost management and pricing power. The profit after tax (PAT) margin also deteriorated to -18.91%, compared to 4.65% in the previous year. These figures suggest that the company is currently selling its products at a loss, which raises concerns about its operational viability. E-Land Apparel's cumulative losses over the nine-month period ending December 2025 total ₹36.99 crores, marking a significant reversal from a brief period of profitability in FY25. The balance sheet reveals a negative net worth of ₹484.78 crores, with a book value per share of -₹107.02, highlighting the company's financial distress. The company's evaluation has undergone an adjustment, reflecting the ongoing operational difficulties and financial instability. Key metrics such as employee costs have surged, consuming a larger portion of revenues, further exacerbating the operational inefficiencies. Additionally, the lack of institutional interest and the company's negative operating leverage indicate a challenging environment ahead. In summary, E-Land Apparel Ltd's latest results underscore a company grappling with severe financial and operational challenges, necessitating urgent strategic interventions to address its deteriorating position.