Are Elgi Rubber Company Ltd latest results good or bad?

Elgi Rubber Company Ltd's latest financial results for the quarter ended December 2025 reveal significant operational challenges. The company reported net sales of ₹100.09 crores, reflecting a sequential growth of 5.93% from the previous quarter. However, this revenue growth was overshadowed by a substantial net loss of ₹28.67 crores, marking a drastic decline compared to the same quarter last year. The operating profit margin saw a severe deterioration, collapsing to -23.52%, a stark contrast to the positive margin of 11.14% recorded in the corresponding quarter last year. This indicates a critical breakdown in operational efficiency, as the company is unable to cover its basic operating expenses. The operating profit before depreciation, interest, tax, and other income (PBDIT) also turned negative, resulting in a loss of ₹23.54 crores, which highlights the company's struggle to manage costs effectively. Interest expenses surged to ₹11.73 crores, reflecting both increased borrowing costs and higher debt levels, further complicating the company's financial situation. The return on equity (ROE) has plummeted to -18.24%, indicating a significant loss of shareholder value. Overall, while Elgi Rubber achieved record revenue growth, the financial data underscores a company in severe operational distress, facing critical challenges in profitability and financial stability. The company saw an adjustment in its evaluation, reflecting the market's recognition of these deteriorating fundamentals.