Are Krebs Biochem latest results good or bad?

Krebs Biochemicals' latest financial results for Q2 FY26 indicate a challenging operational environment characterized by significant revenue decline and persistent losses. The company reported net sales of ₹4.17 crores, reflecting a year-on-year decrease of 67.57% from ₹12.86 crores in the same quarter last year. This decline in revenue is compounded by a sequential contraction of 23.91% from ₹5.48 crores in Q1 FY26, highlighting a troubling trend of diminishing sales.
The operational performance further deteriorated, with an operating margin of -66.91%, indicating that the company is losing a substantial portion of its revenue at the operational level. The net loss for the quarter stood at ₹6.14 crores, which represents a 15.41% increase in losses compared to the previous quarter. This ongoing financial distress is underscored by a negative book value of ₹-67.83 per share, demonstrating that the company's liabilities exceed its assets.

The financial data reveals that the company has been unable to stabilize its revenue base, with a half-yearly revenue figure for H1 FY26 of ₹9.65 crores, down 62.52% from ₹25.75 crores in H1 FY25. The operational inefficiencies are further illustrated by employee costs consuming a significant portion of total revenue, alongside an unsustainable interest burden that accounted for 41.49% of quarterly revenue.

Overall, Krebs Biochemicals is facing severe operational and financial challenges, with no clear path to recovery evident in the current data. The company has experienced a revision in its evaluation, reflecting the ongoing difficulties in its financial performance and operational viability.