Are Khandwala Sec. latest results good or bad?

Khandwala Securities' latest financial results for Q1 FY26 reveal significant operational challenges. The company reported a revenue of ₹1.14 crores, which reflects a year-on-year decline of 54.76% from ₹2.52 crores in Q1 FY25 and a marginal sequential decrease of 3.39% from ₹1.18 crores in Q4 FY25. This substantial revenue contraction indicates difficulties in generating institutional dealing volumes and investment banking mandates.
The operating margin has turned negative at -55.26%, a stark contrast to the positive margin of 22.22% reported in the same quarter last year. This indicates that the core business operations are currently unprofitable. The net loss for the quarter stood at ₹0.59 crores, representing a drastic year-on-year decline of 222.92% compared to a profit of ₹0.54 crores in Q1 FY25.

The company's return on equity has also deteriorated to -2.73%, significantly below the five-year average of 0.54%, highlighting persistent capital efficiency issues. Furthermore, the absence of institutional investors and the high proportion of retail and non-institutional ownership raise concerns about market confidence and liquidity.

Overall, Khandwala Securities is facing severe operational distress, with multiple indicators pointing to a challenging financial landscape. The company saw an adjustment in its evaluation, reflecting the fundamental challenges it faces in the current market environment.