Are Esha Media Research Ltd latest results good or bad?

Esha Media Research Ltd's latest financial results for Q2 FY26 reveal a complex picture of operational performance amid ongoing challenges. The company reported a net loss of ₹0.34 crores, which reflects a narrowing of losses by 17.07% compared to the previous quarter. This indicates some progress in managing expenses, although the company continues to operate at a loss. Revenue for the quarter was ₹0.70 crores, marking a significant sequential growth of 29.63% from ₹0.54 crores in Q1 FY26 and an 84.21% increase year-on-year from ₹0.38 crores in Q2 FY25. Despite this revenue growth, the operating margin remains negative at -37.14%, although it has improved from -61.11% in the previous quarter. This suggests that while revenue is increasing, the company is still struggling to convert that revenue into positive operating cash flow, with employee costs consuming a substantial 78.57% of revenues. The financial results also highlight the company's ongoing difficulties, as it has reverted to losses after a brief profit in Q4 FY25. The balance sheet indicates significant financial distress, with negative shareholder funds of ₹10.92 crores, which has worsened from the previous year. This situation is compounded by a dramatic rise in current liabilities, which surged to ₹11.52 crores, raising concerns about liquidity and operational sustainability. Esha Media's performance metrics reflect a company in a precarious position, attempting to establish a turnaround after years of dormancy. The company saw an adjustment in its evaluation, reflecting the challenges it faces in achieving sustainable profitability and managing its cost structure effectively. Overall, while there are signs of revenue growth, the underlying operational inefficiencies and financial distress present significant hurdles for Esha Media as it seeks to stabilize and grow.