Are NB Footwear Ltd. latest results good or bad?

The financial results for NB Footwear Ltd. reveal a concerning situation for the company. In Q2 FY26, the company reported a net loss of ₹0.03 crores, maintaining a trend of zero revenue for the seventh consecutive quarter. This lack of operational activity indicates a significant decline in the company's ability to generate income. The net sales remained at ₹0.00 crores, and the book value per share has turned negative at ₹-1.92, reflecting a complete erosion of shareholder equity. The quarterly operating profit before depreciation, interest, and tax (PBDIT) was also recorded at ₹-0.03 crores, which, while showing a slight reduction in losses compared to previous quarters, is attributed solely to a decrease in employee costs rather than any operational recovery. The company's financial position has deteriorated further, with negative shareholder funds of ₹-1.59 crores as of March 2025, raising serious concerns regarding its going concern status. In terms of year-over-year performance, the company reported a 40% improvement in standalone net profit compared to the previous year, but this is misleading given the context of ongoing losses and zero revenue generation. The absence of institutional support and the company's lack of operational activity suggest extreme risk aversion among potential investors. Overall, the financial data indicates that NB Footwear Ltd. is in a critical state, with no visible signs of recovery or operational viability. The company has seen an adjustment in its evaluation, reflecting the severe challenges it faces in the current market environment. The outlook remains bleak unless there are significant changes in its operational strategy or financial structure.