Are New Light Industries Ltd latest results good or bad?

New Light Industries Ltd has reported significant challenges in its latest financial results for Q3 FY26. The company experienced a substantial decline in both revenue and net profit compared to the same quarter last year. Specifically, revenue fell to ₹1.39 crores, representing a decrease of 82.02% year-on-year from ₹7.73 crores in Q3 FY25. This trend of declining sales has persisted throughout the fiscal year, with nine-month revenue down 57.75% compared to the prior year. Net profit also saw a drastic reduction, dropping to ₹0.02 crores, which is a 96.36% decline year-on-year. The operating margin has contracted sharply to 2.16%, down from 7.24% in the same quarter last year, indicating severe pressure on profitability. Additionally, the average return on equity (ROE) is reported at 3.38%, which is below industry standards, reflecting poor capital efficiency. The financial performance highlights a worrying operational crisis, with the company's revenue base collapsing and profitability metrics deteriorating. The cash position is critically low, and the debtors turnover ratio has worsened, suggesting challenges in working capital management. Overall, New Light Industries Ltd's financial results indicate a company facing significant operational distress, necessitating urgent management intervention or strategic changes. The company has also seen an adjustment in its evaluation, reflecting the ongoing challenges in its operational performance.