Are Exicom Tele-Systems Ltd latest results good or bad?

Exicom Tele-Systems Ltd's latest financial results for the quarter ending December 2025 reveal a challenging operational landscape. The company reported net sales of ₹276.73 crores, which reflects a sequential decline of 1.77% from the previous quarter but a substantial year-on-year growth of 40.74%. Despite this revenue growth, Exicom continues to face significant profitability challenges, as evidenced by a net loss of ₹67.87 crores, marking the ninth consecutive quarter of operational losses. The operating margin for the quarter stood at a deeply negative -11.68%, indicating ongoing difficulties in managing costs relative to sales. Additionally, the return on equity (ROE) has deteriorated to -33.48%, highlighting severe capital destruction. The company's cumulative losses over the nine-month period ending December 2025 have reached ₹219.82 crores, a stark contrast to the loss of ₹47.76 crores in the same period of the previous fiscal year. Exicom's financial performance is further complicated by rising employee costs, which have surged to ₹51.35 crores, more than double the amount recorded in Q2 FY24. The company's inability to generate positive operating cash flow, which was negative at ₹169.00 crores in FY25, raises concerns about its financial sustainability. In light of these results, the company saw an adjustment in its evaluation, reflecting the sustained deterioration in financial performance. The operational metrics indicate a critical need for strategic intervention to address the ongoing losses and restore profitability. Overall, Exicom's current financial trajectory underscores significant operational challenges that demand immediate attention to ensure the company's viability moving forward.