Are Jeevan Scienti. latest results good or bad?

Jeevan Scientific's latest financial results for Q2 FY26 present a complex picture of operational performance. The company reported net sales of ₹12.38 crores, reflecting an 8.60% year-on-year growth, which indicates some level of stabilization after a challenging previous quarter. However, this revenue growth is overshadowed by a significant decline in profitability, with a consolidated net loss of ₹0.09 crores, marking a stark contrast to the profit levels seen in the same quarter last year.
The operating margin stood at 16.72%, which, while showing a sequential recovery from a negative margin in the prior quarter, represents a notable contraction from the 21.93% achieved in Q2 FY24. This decline in margins is indicative of rising operational costs, particularly in employee expenses, which have outpaced revenue growth. The profit after tax margin has also diminished sharply to just 0.08%, down from 2.19% a year ago, raising concerns regarding the company's ability to convert revenue into sustainable profits.

Additionally, the company experienced a substantial increase in depreciation costs, which accounted for a significant portion of total revenue, further straining profitability. The financial metrics suggest that Jeevan Scientific is grappling with operational inefficiencies and challenges in capital allocation.

Overall, while there are signs of sequential revenue recovery, the persistent losses and declining margins highlight critical operational challenges that the company must address. The latest results have led to an adjustment in the company's evaluation, reflecting the ongoing difficulties in achieving consistent profitability despite some revenue growth.