Are Eyantra Ventures Ltd latest results good or bad?

Eyantra Ventures Ltd's latest financial results for Q2 FY26 reveal a complex situation characterized by significant revenue growth juxtaposed with deepening losses. The company reported consolidated net sales of ₹22.95 crores, which reflects a substantial year-on-year increase of 200.39% from ₹7.64 crores in Q2 FY25, and a sequential growth of 17.33% from ₹19.56 crores in Q1 FY26. This marks the highest quarterly sales in the company's recent history. However, this revenue growth has not translated into profitability. The consolidated net profit showed a loss of ₹2.41 crores, widening from a profit of ₹0.34 crores in the same quarter last year, indicating an 808.82% decline year-on-year. Additionally, the company experienced a 39.31% increase in losses compared to the previous quarter, where it reported a loss of ₹1.73 crores. The operating margin (excluding other income) turned negative at -14.12%, a stark contrast to the positive margin of 8.38% in Q2 FY25. The operational challenges are evident, as rising employee costs surged to ₹6.26 crores, accounting for a significant portion of net sales, which has contributed to the negative profitability metrics. The return on equity (ROE) stands at a low 2.68%, indicating poor capital efficiency. In summary, while Eyantra Ventures Ltd has demonstrated impressive revenue growth, the inability to manage costs effectively has led to substantial losses and negative operating margins. The company has seen an adjustment in its evaluation, reflecting the challenges it faces in achieving profitability amidst rising operational costs.