Are HMT Ltd latest results good or bad?

HMT Ltd's latest financial results for the quarter ended September 2025 reflect a company facing significant operational challenges. The net sales reported were ₹25.83 crores, which marked a year-on-year contraction of 37.89%, although there was a sequential increase of 5.21% from the previous quarter. This indicates a persistent decline in revenue generation, highlighting ongoing structural issues within the business. The company recorded a net loss of ₹39.08 crores for the quarter, representing a substantial year-on-year increase in losses of 44.26%. The operating margin, excluding other income, was deeply negative at -145.1%, underscoring severe operational inefficiencies. The reliance on other income, which constituted a significant portion of total revenue, raises concerns about the viability of the core manufacturing operations. HMT's balance sheet reveals a troubling picture, with negative shareholder equity of ₹1,897.90 crores, indicating that liabilities significantly exceed assets. The current liabilities of ₹2,287.97 crores against current assets of only ₹475.48 crores point to an acute liquidity crisis, suggesting that the company is technically insolvent. The financial results also show a continued trend of cash flow issues, with negative cash flow from operations indicating that the company is consuming cash to sustain its operations. The decline in fixed assets to ₹30.28 crores reflects a reduction in productive capacity, further complicating the company's ability to generate future revenues. Overall, HMT Ltd's financial performance indicates a company in distress, with ongoing losses, a deteriorating revenue base, and a balance sheet that raises significant concerns about its future viability. The company saw an adjustment in its evaluation, reflecting these challenging operational and financial circumstances.