Are Hemang Resources Ltd latest results good or bad?

The latest financial results for Hemang Resources Ltd indicate significant operational challenges. In Q2 FY26, the company reported net sales of ₹0.00 crores, marking the second quarter within a year with no revenue generation. This represents a stark decline from ₹0.96 crores in Q2 FY25, highlighting a troubling trend in operational performance. The net profit for the same quarter was a loss of ₹0.22 crores, a deterioration from a profit of ₹0.54 crores in the previous quarter. The absence of revenue generation has led to an operating loss of ₹0.24 crores, slightly worse than the previous quarter's loss. The company's historical average return on equity (ROE) remains relatively strong at 30.04%, but the latest figures show a significant drop to 5.25%, indicating deteriorating operational efficiency. The return on capital employed (ROCE) is currently at -0.19%, reflecting ongoing value destruction. Despite stable promoter holdings at 63.65%, the lack of institutional interest raises concerns about the company's credibility and liquidity. The stock has underperformed significantly compared to the broader market, with a 36.17% decline over the past year against a 9.85% gain in the Sensex. Overall, Hemang Resources Ltd is facing a critical operational crisis, with zero revenue generation and mounting losses, which raises serious questions about the sustainability of its business model. The company has seen an adjustment in its evaluation, reflecting the ongoing challenges it faces in the current market environment.