Are Forbes & Company Ltd latest results good or bad?

Forbes & Company Ltd's latest financial results for the quarter ending December 2025 reveal significant challenges in its operational performance. The company reported net sales of ₹17.80 crores, marking a 55.75% decline year-on-year, which is the lowest quarterly revenue recorded in recent history. This decline in sales reflects a continuation of negative momentum, as the company also experienced a sequential contraction of 4.81% from the previous quarter. In terms of profitability, the consolidated net profit stood at ₹4.19 crores, which represents a 33.81% decrease compared to the previous quarter and a 55.89% drop year-on-year. The operating margin, excluding other income, was reported at 16.97%, showing a slight improvement from the previous quarter but a decline from the same quarter last year. The results indicate a concerning reliance on non-operating income, which constituted 42.54% of profit before tax, raising questions about the sustainability of earnings. Despite maintaining a debt-free balance sheet and a historically strong return on equity of 29.61%, the company's operational challenges are evident, as reflected in the significant revenue contraction and the overall decline in performance metrics. The financial trend classification has been revised to reflect these deteriorating conditions, indicating a shift in the company's evaluation. The company is facing structural challenges that may hinder its ability to recover in the near term, particularly given the negative cash flow reported in the previous fiscal year and the lack of institutional investor confidence, as evidenced by minimal institutional holdings. Overall, Forbes & Company Ltd's latest results underscore a company in transition, grappling with severe operational pressures and a need for strategic reassessment to navigate its current challenges effectively.