Are Goa Carbon latest results good or bad?

Goa Carbon's latest financial results for Q2 FY26 reveal significant operational challenges, marked by a net loss of ₹21.41 crores and a sharp decline in revenue to ₹102.38 crores, representing a quarter-on-quarter drop of 48.61%. This revenue figure is the lowest recorded in the past year, indicating persistent weakness in the Calcined Petroleum Coke market.
The company's operating margin turned negative at -9.66%, worsening from -3.92% in the previous quarter, while the profit after tax margin also deteriorated to -20.91% from -3.99%. These metrics highlight a severe contraction in profitability, with operating losses accelerating to ₹9.89 crores, the worst performance in recent quarters.

Interest costs rose to ₹6.04 crores, the highest in the trailing period, further straining the company's financial position. Despite a year-on-year revenue growth of 22.24% for the first half of FY26, this growth masks the underlying issues, as the company transitioned from profitability in Q1 FY25 to significant losses in the current fiscal year.

The operational distress is compounded by a notable decline in return on equity (ROE), which has dropped to negative 15.15% from an average of 22.18%. The company's average return on capital employed (ROCE) also fell to 14.58%, indicating deteriorating returns on invested capital.

Overall, Goa Carbon's financial performance reflects a company grappling with severe operational challenges and mounting losses, necessitating urgent management action to address these issues. Additionally, the company saw an adjustment in its evaluation, reflecting the deteriorating fundamentals and uncertain outlook.