Are Family Care latest results good or bad?

Family Care Hospitals has reported alarming financial results for the second quarter of FY26, highlighting significant operational distress. The company's revenue has dramatically declined to ₹0.07 crores, representing a staggering 98.20% decrease year-on-year from ₹3.88 crores in Q2 FY25. This decline indicates a near-total collapse of its revenue-generating operations, raising serious concerns about its business viability.
The net profit for the quarter was a loss of ₹4.61 crores, worsening from a loss of ₹0.70 crores in the previous quarter. The operating margin stood at a deeply negative -6,271.43%, reflecting a severe breakdown in the business model. The profit and loss statement reveals that the company's operational performance has deteriorated significantly, with the operating profit before depreciation, interest, and tax (PBDIT) at negative ₹4.39 crores.

In terms of balance sheet health, shareholder funds have eroded by 76.94% over the past year, dropping from ₹58.37 crores to ₹13.46 crores. Current liabilities have surged to ₹32.20 crores, indicating mounting financial pressure and potential liquidity issues. The company's cash flow statement also shows negative operating cash flow of ₹17.00 crores for FY25, further complicating its financial situation.

Overall, Family Care Hospitals is facing critical challenges, with revenues collapsing and mounting losses, suggesting fundamental operational issues rather than temporary setbacks. The company has experienced an adjustment in its evaluation, reflecting the severity of its current financial distress.