Are Kati patang Lifestyle Ltd latest results good or bad?

Kati Patang Lifestyle Ltd's latest financial results for the quarter ended December 2025 reveal significant challenges for the company. The net sales for this quarter stood at ₹2.60 crores, reflecting a year-on-year decline of 40.09%, despite a quarter-on-quarter growth of 17.12% from the previous quarter's revenue of ₹2.22 crores. This modest sequential improvement does not offset the stark drop compared to the same quarter last year, where revenue was nearly double. The company's net profit for Q3 FY26 was reported as a loss of ₹2.82 crores, which represents a substantial year-on-year worsening of 149.56% and a quarter-on-quarter deterioration of 60.23%. The operating margin for the quarter was recorded at -107.31%, indicating that operational costs significantly exceeded revenues, a situation that has worsened from the previous year's margin of -31.11%. Kati Patang Lifestyle's financial metrics suggest a business model under severe strain, with cumulative losses continuing to erode shareholder value. The company's balance sheet reflects fragility, with negative equity and rising debt levels, raising concerns about its solvency. The decline in promoter holdings to 39.19% and the absence of institutional interest further underscore the lack of confidence in the company's future prospects. Overall, the data indicates that Kati Patang Lifestyle Ltd is grappling with a broken business model, facing mounting operational losses and significant revenue declines. The company has experienced an adjustment in its evaluation, reflecting the ongoing challenges and risks associated with its financial performance.