Are Goyal Associates Ltd latest results good or bad?

Goyal Associates Ltd's latest financial results for Q2 FY26 present a mixed picture, highlighting both some sequential recovery and ongoing challenges. The company reported a net profit of ₹0.05 crores, which reflects a significant sequential improvement of 400% compared to the previous quarter's profit of ₹0.01 crores. However, this figure represents a year-on-year decline of 54.55%, indicating persistent difficulties in maintaining profitability. In terms of revenue, Goyal Associates achieved ₹0.29 crores in Q2 FY26, marking a modest sequential growth of 3.57% from ₹0.28 crores in Q1 FY26. Nonetheless, this revenue is down 34.09% from ₹0.44 crores in Q2 FY25, underscoring a troubling trend of revenue erosion that has affected the company over recent quarters. The operating margin showed notable improvement, rising to 24.14% from 10.71% in Q1 FY26, suggesting some recovery in operational efficiency. However, this margin remains below the 38.64% achieved in Q2 FY25, indicating that while there are signs of operational adjustments, they have not fully compensated for the revenue pressures. Return on equity for the latest quarter stood at 10.18%, which, while indicative of some capital efficiency, is below the typical benchmarks for the sector. The company's capital base remains a concern, with shareholder funds of ₹3.25 crores and negative reserves of ₹1.44 crores, reflecting historical operational struggles and limiting growth potential. Overall, while Goyal Associates Ltd has shown some sequential recovery in net profit and operational margins, the year-on-year declines in revenue and profit, along with ongoing challenges in capital adequacy and operational consistency, highlight significant fundamental issues. The company has experienced an adjustment in its evaluation, reflecting these complexities in its financial performance.