Are NB Footwear Ltd. latest results good or bad?

The latest financial results for NB Footwear Ltd. highlight a challenging situation for the company. In the second quarter of FY26, the company reported a net loss of ₹0.03 crores, which reflects a sequential improvement of 62.50% from the previous quarter's loss of ₹0.08 crores. However, this reduction in losses is primarily attributed to lower operating expenses rather than any operational recovery, as the company continues to report zero revenue for at least seven consecutive quarters, indicating a complete cessation of business activities.
The revenue figures remain stagnant at ₹0.00 crores, consistent with the previous year's performance, underscoring the company's inability to generate sales. The operating profit before depreciation, interest, and tax (PBDIT) also reflects a loss of ₹0.03 crores, with no interest charges or taxes due to the loss-making status.

On the balance sheet front, as of March 2025, NB Footwear reported negative shareholder equity of ₹1.59 crores, indicating that its liabilities exceed its assets, which raises concerns about its financial viability. The book value per share stands at -₹1.92, further emphasizing the erosion of capital.

In terms of stock performance, the company has seen a significant decline, with a 1-year stock return of -48.06%, which is notably worse than the Sensex's gain of 10.38% during the same period. This underperformance reflects the market's recognition of the company's non-operational status and deteriorating financial health.

Overall, the financial data indicates that NB Footwear Ltd. remains in a precarious position with no clear path to recovery. The company has seen an adjustment in its evaluation, reflecting its ongoing struggles and lack of operational activity. The absence of revenue generation, coupled with persistent losses and negative equity, paints a bleak picture for the company's future.