Are Indian Acrylics Ltd latest results good or bad?

The latest financial results for Indian Acrylics Ltd reveal a complex situation characterized by revenue growth amidst ongoing profitability challenges. In the quarter ending September 2025, the company reported net sales of ₹102.19 crores, marking an 18.56% increase compared to the previous quarter, which is the highest quarterly revenue in seven quarters. However, this revenue growth has not translated into profitability, as the company recorded a net loss of ₹5.75 crores, which represents a significant year-on-year decline. The operating margin for the quarter stood at a modest 1.74%, showing a slight recovery from negative margins in the preceding quarters, yet it remains insufficient to cover the company's fixed costs and debt obligations. The interest burden has escalated to ₹4.94 crores, the highest in seven quarters, further compounding the financial strain as it consumes the entirety of the operating profit. On a half-yearly basis, Indian Acrylics reported consolidated net sales of ₹188.38 crores for H1 FY26, reflecting a sequential improvement from the previous fiscal year, but the cumulative net loss of ₹10.47 crores indicates a persistent inability to achieve breakeven despite the top-line growth. Year-on-year, revenues have declined by 10.27%, highlighting ongoing operational difficulties. The company's balance sheet shows significant distress, with shareholder funds collapsing to ₹10.09 crores and reserves turning deeply negative at ₹-125.24 crores. The debt-to-equity ratio has surged to 17.21 times, raising serious concerns about financial sustainability and the ability to continue as a going concern without substantial intervention. Overall, while Indian Acrylics Ltd has demonstrated some revenue recovery, the underlying financial metrics indicate a company grappling with severe operational challenges and mounting financial distress. The company saw an adjustment in its evaluation, reflecting these ongoing issues. Investors should closely monitor future performance to assess any potential recovery or further deterioration.