Are Guj. State Fin. latest results good or bad?

Gujarat State Financial Corporation's latest financial results for Q2 FY26 indicate a company facing significant operational challenges. The reported net sales for the quarter were a mere ₹0.05 crores, reflecting a substantial year-on-year decline of 85.29% and a sequential drop of 44.44% from the previous quarter. This sharp revenue contraction highlights a severe collapse in the company's revenue-generating capabilities.
The corporation recorded a net loss of ₹31.96 crores for the quarter, which is slightly higher than the loss of ₹31.02 crores in the prior quarter. This persistent loss underscores ongoing financial distress, as the company's operational profit before depreciation, interest, and tax was reported at ₹-0.62 crores, resulting in an operating margin of -1,240.0%. Even with other income of ₹4.05 crores, the total operating profit was insufficient to cover the interest obligations of ₹35.54 crores, indicating a critical interest coverage crisis.

Furthermore, the company's balance sheet reveals a negative book value of ₹-326.57 per share and total shareholder funds of ₹-3,060.59 crores, suggesting technical insolvency. The current liabilities of ₹3,280.62 crores far exceed the minimal asset base, creating an unsustainable financial structure.

In terms of evaluation, the company saw an adjustment in its evaluation, reflecting the ongoing financial difficulties and lack of operational viability. The absence of institutional investor confidence is evident, with no participation from foreign institutional investors or mutual funds, and a minimal stake held by domestic institutional investors.

Overall, the financial data for Gujarat State Financial Corporation paints a picture of a company in severe distress, with no clear path to recovery without significant intervention. The operational model is effectively non-functional, and the outlook remains bleak without extraordinary measures to address the underlying financial issues.