Are Morgan Ventures Ltd latest results good or bad?

Morgan Ventures Ltd's latest financial results for Q3 FY26 indicate significant operational distress. The company reported net sales of ₹1.29 crores, reflecting a substantial decline of 90.76% quarter-on-quarter and a year-on-year decrease of 91.08%. This dramatic drop raises concerns about the company's ability to sustain its business model and operational capacity. In terms of profitability, Morgan Ventures recorded a net loss of ₹5.13 crores, which marks a considerable deterioration compared to the profit of ₹5.91 crores in the previous quarter. The operating profit before depreciation, interest, and tax (PBDIT) turned deeply negative at -₹1.60 crores, resulting in an operating margin of -124.03%. This stark contrast to the previous quarter's robust margin suggests severe challenges in managing operational costs amid collapsing revenues. Interest expenses remained high at ₹4.23 crores, although they decreased from the previous quarter. However, with revenues at such low levels, these costs have become unsustainable, consuming the company's operational capacity entirely. The profit after tax (PAT) margin plummeted to -397.67%, indicating that for every rupee of sales, the company lost nearly four rupees. The company's leverage is also a concern, with a net debt-to-equity ratio of 1.85, indicating significant financial risk. Despite a historical average return on equity (ROE) of 19.24%, the current operational performance suggests that this level of profitability is no longer sustainable. Overall, Morgan Ventures Ltd's Q3 FY26 results highlight a critical situation, with severe revenue contraction and deep losses prompting urgent questions about the company's future viability. The company also experienced an adjustment in its evaluation, reflecting the deteriorating financial trends and operational challenges it faces.