Are Khadim India Ltd latest results good or bad?

Khadim India Ltd's latest financial results for the quarter ending December 2025 indicate significant challenges across multiple key metrics. The company reported net sales of ₹86.24 crores, reflecting a year-on-year contraction of 21.77%, marking the lowest quarterly revenue in recent periods. This decline in sales is indicative of ongoing difficulties in consumer demand and operational performance. Operating profit also faced a downturn, with operating margins compressing to 12.84%, the lowest level recorded in recent quarters. The company reported a net loss of ₹0.18 crores, a substantial decline compared to previous periods, highlighting a reversal from profitability in earlier quarters. This deterioration in financial performance is compounded by elevated fixed costs, including interest and depreciation, which have further strained the company's financial flexibility. The financial data reveals persistent operational challenges, with the company's return on equity standing at just 6.90%, significantly below industry averages. Additionally, the debt-to-equity ratio has climbed to 1.47 times, indicating heightened leverage in a context of declining profitability. Furthermore, the company has experienced a notable exodus of institutional investors, with mutual fund holdings dropping to zero, reflecting a loss of confidence in the company's recovery prospects. This trend, alongside the stock's substantial decline of 50.50% over the past year, suggests a critical reassessment of Khadim India's fundamental quality and growth potential. In summary, Khadim India Ltd's latest results underscore a period of operational distress, marked by declining revenues, compressed margins, and a return to net losses. The company saw an adjustment in its evaluation, reflecting these ongoing challenges and the broader competitive pressures within the footwear retail sector.