Are Lancor Holdings Ltd latest results good or bad?

Lancor Holdings Ltd's latest financial results for Q3 FY26 reveal a complex picture of operational recovery overshadowed by continued challenges in profitability. The company reported net sales of ₹38.48 crores, reflecting a sequential growth of 14.01% from the previous quarter, indicating some stabilization in project execution and sales realization. However, when compared year-on-year, revenue declined by 16.22%, suggesting that the company is still below its sales trajectory from the previous year. Despite the revenue growth, Lancor Holdings slipped back into a net loss of ₹0.19 crores, a significant deterioration from a marginal profit in the previous quarter and a stark contrast to the loss of ₹2.07 crores in the same quarter last year. This represents a 90.82% decline in profitability, raising concerns about the sustainability of the company's earnings. On the operational front, the company achieved an operating margin of 15.96%, a notable improvement from 7.14% in Q2 FY26. This margin expansion suggests enhanced operational efficiency and cost management, particularly as employee costs decreased. However, the elevated interest costs of ₹6.17 crores, which accounted for 16.04% of revenue, continue to erode profitability at the pre-tax level, leading to a negative profit before tax of ₹0.03 crores. For the nine-month period ending December 2025, Lancor Holdings generated revenue of ₹113.42 crores but recorded a cumulative net loss of ₹2.59 crores, contrasting sharply with a profit of ₹4.64 crores in the same period the previous year. This trend reflects a significant decline in profitability, further compounded by the company's high leverage, as indicated by a debt-to-EBITDA ratio of 10.46 times. Overall, while there are signs of operational recovery in terms of revenue and margins, the persistent losses and high financial leverage present ongoing challenges for Lancor Holdings. The company saw an adjustment in its evaluation, reflecting these complexities in its financial performance. Investors may need to consider these factors carefully as the company navigates through a challenging real estate environment.