Are Everest Inds. latest results good or bad?

The latest financial results for Everest Industries indicate significant operational challenges. In the quarter ended September 2025, the company reported net sales of ₹306.16 crores, which reflects an 18.75% decline year-on-year from ₹376.82 crores in the same quarter of the previous year. This marks a substantial decrease compared to the previous quarter's sales of ₹500.72 crores, highlighting a severe contraction in revenue.
The company faced a net loss of ₹18.17 crores in Q2 FY26, a sharp deterioration from a profit of ₹1.63 crores in Q1 FY26. This represents a significant reversal in profitability, with operating margins turning negative at -2.94%, down from a positive margin of 3.27% in the prior quarter. The operational performance is further underscored by a negative operating profit before depreciation, interest, and tax (PBDIT) of ₹-9.01 crores, a stark contrast to the previous quarter's positive figure.

Additionally, the financial metrics reveal a concerning trend in cash flow, with operating cash flow turning negative at ₹-90.00 crores for FY25, raising liquidity concerns. The company's average return on equity (ROE) over the last five years stands at 5.70%, which is below industry standards, and the latest ROE for FY25 has turned negative at -2.37%.

The overall evaluation of Everest Industries has undergone an adjustment, reflecting the deteriorating financial performance and operational inefficiencies. The company is facing critical challenges that require immediate attention to restore profitability and improve its financial standing.