Are Mahasagar Travels Ltd latest results good or bad?

Mahasagar Travels Ltd's latest financial results reflect a complex operational landscape. For the fiscal year ending March 2025, the company reported annual revenue of ₹36.00 crores, which represents a year-on-year decline of 16.3%. This marks the third consecutive year of revenue contraction, indicating ongoing challenges in maintaining market share within the competitive transport services sector. The company's net profit for FY2025 was reported at zero, suggesting it barely managed to break even after experiencing losses in previous periods. Despite the revenue decline, Mahasagar Travels achieved a marginal operating profit of ₹1.00 crore, resulting in an operating margin of 2.8%, which is an improvement from 2.3% in the prior year. However, this operating profit was offset by depreciation, leading to zero profit before tax and net profit. The company's total expenditure decreased to ₹34.00 crores from ₹42.00 crores in FY2024, indicating some cost rationalization efforts. The balance sheet reveals a concerning position, with a book value per share of -₹0.06, indicating that liabilities exceed assets. This negative net worth has deteriorated from previous years, raising questions about the company's ability to continue as a going concern without significant capital infusion or operational turnaround. In terms of operational performance, the company reported a slight recovery in the quarterly results for December 2025, with net sales showing a year-on-year growth of 2.31% compared to a decline of 20.96% in December 2024. The standalone net profit for this quarter also saw a notable increase of 116.67% year-on-year, indicating potential signs of recovery in the short term. Overall, Mahasagar Travels Ltd's financial results illustrate a company grappling with substantial operational challenges, characterized by declining revenues and a negative net worth, while also showing some signs of improvement in recent quarterly performance. The company saw an adjustment in its evaluation, reflecting these ongoing dynamics.