Are Motor & General Finance Ltd latest results good or bad?

Motor & General Finance Ltd's latest quarterly results for Q3 FY26 reflect significant operational challenges, as the company has returned to losses after a brief period of profitability in Q2 FY26. The net sales for the quarter amounted to ₹1.63 crores, which represents a decline of 2.98% compared to the previous quarter and a decrease of 6.32% year-on-year. This ongoing pressure on revenue indicates difficulties in sustaining sales growth. The operating profit before depreciation, interest, and tax (excluding other income) was reported at ₹-0.23 crores, resulting in an operating margin of -14.11%. This marks a deterioration from the previous quarter's margin of -7.74%, highlighting persistent negative operating performance. The company's reliance on other income to offset operational losses raises concerns about the sustainability and quality of its earnings. In terms of profitability, the net profit for Q3 FY26 was ₹-0.03 crores, which is a stark contrast to the profit of ₹1.11 crores reported in Q2 FY26. This represents a significant shift in the company's financial performance, emphasizing the volatility in its earnings. Additionally, the return on equity (ROE) stands at a low 1.98%, indicating weak capital efficiency. The return on capital employed (ROCE) is negative at -2.42%, suggesting that the company is not generating adequate returns on its investments. Overall, the financial data indicates that Motor & General Finance Ltd is facing ongoing operational difficulties, with a notable adjustment in its evaluation reflecting these challenges. The company's historical performance shows a pattern of underperformance, and the current results underscore the need for a reassessment of its business model and operational strategies to achieve sustainable profitability.