Are HMT Ltd latest results good or bad?

HMT Ltd's latest financial results for Q3 FY26 reveal significant challenges facing the company. The reported net sales of ₹20.83 crores reflect a year-on-year decline of 28.64% and a quarter-on-quarter decrease of 19.36%, marking the lowest revenue figure in recent history. This decline underscores a substantial erosion of the company's manufacturing and commercial capabilities. The operational performance has also deteriorated markedly, with an operating margin of -111.04%, indicating that the company is incurring losses greater than its sales. This represents a significant worsening compared to the previous year's margin of -57.45%. The net loss for the quarter stood at ₹27.24 crores, which is a 46.88% increase in losses year-on-year and a 30.30% increase from the previous quarter. Additionally, HMT's financial health is concerning, as evidenced by a negative book value per share of ₹-53.37 and negative shareholder equity amounting to ₹1,897.90 crores. This situation suggests a severe liquidity crisis, with current liabilities significantly exceeding current assets, leading to a working capital deficit of ₹1,812.49 crores. Overall, the results indicate a continuation of a troubling trend for HMT Ltd, characterized by persistent operational challenges and financial distress. The company has experienced an adjustment in its evaluation, reflecting these ongoing difficulties. The absence of a credible turnaround strategy further complicates the outlook, leaving little room for optimism regarding future performance.