Are Harshil Agrotech Ltd latest results good or bad?

Harshil Agrotech Ltd's latest financial results for Q3 FY26 indicate a significant operational breakdown. The company reported net sales of ₹7.25 crores, reflecting an 82.86% sequential decline from ₹42.29 crores in Q2 FY26 and a 71.82% decrease from ₹25.73 crores in the same quarter last year. This dramatic contraction in revenue has resulted in a net loss of ₹5.36 crores, a stark contrast to the profit of ₹5.48 crores reported in the previous year. The operating margin for the quarter plummeted to -73.79%, a sharp decline from the 20.79% margin achieved in December 2024. This indicates that the company's cost structure remained relatively fixed while revenue sharply declined, suggesting challenges in operational flexibility and cost management. The profit after tax margin also deteriorated to -73.93%, highlighting the ongoing operational losses. The financial performance raises concerns about the sustainability of Harshil Agrotech's business model, particularly given the absence of institutional support and the complete lack of promoter holding. The company's transition from Mirch Technologies to Harshil Agrotech appears to have coincided with these operational challenges, as evidenced by the severe revenue volatility and negative cash flow reported. Overall, the results indicate a critical juncture for Harshil Agrotech, with the potential for further operational challenges unless there is a clear turnaround strategy. The company has experienced an adjustment in its evaluation, reflecting the current financial distress and operational risks.