Are MIRC Electronics Ltd latest results good or bad?

MIRC Electronics Ltd's latest financial results for Q3 FY26 present a complex picture of the company's operational health. The company achieved a significant revenue growth, with net sales reaching ₹212.04 crores, reflecting a year-on-year increase of 27.11%. This growth marks a notable achievement, especially when compared to the previous year's performance, which saw a decline. However, despite this revenue growth, MIRC Electronics reported a net loss of ₹13.11 crores, which represents a substantial deterioration in profitability compared to the same quarter last year. The operating margin, excluding other income, was recorded at negative 3.93%, indicating ongoing challenges in converting sales into profit. This negative margin has persisted for six consecutive quarters, highlighting fundamental issues in cost management and operational efficiency. The company's return on equity (ROE) stands at negative 26.26%, indicating significant destruction of shareholder value. This situation is compounded by high interest costs, which have risen compared to the previous year, further straining the company's financial position. On a cumulative basis for the nine months ending December 2025, MIRC Electronics generated sales of ₹516.20 crores but incurred a net loss of ₹27.38 crores, contrasting unfavorably with the prior year's results where the losses were significantly smaller despite higher sales. Overall, while MIRC Electronics has demonstrated an ability to grow its top line, the underlying operational challenges and persistent losses raise concerns about the sustainability of its business model. The company saw an adjustment in its evaluation, reflecting these ongoing financial difficulties and the need for operational restructuring to address the critical issues at hand.