Are Norris Medicines Ltd latest results good or bad?

Norris Medicines Ltd's latest financial results for Q2 FY26 present a complex picture. On one hand, the company reported net sales of ₹2.00 crores, reflecting a sequential growth of 36.99% from ₹1.46 crores in Q1 FY26 and a year-on-year increase of 57.48% from ₹1.27 crores in Q2 FY25. This topline growth suggests some market traction; however, it is overshadowed by significant operational challenges. The net loss for the quarter was ₹0.72 crores, which marks a substantial deterioration compared to the previous quarter's loss of ₹0.31 crores. The operating margin fell to -24.50%, a sharp decline from -6.85% in Q1 FY26, indicating that the company's ability to manage costs relative to its sales has worsened considerably. This operational performance is concerning, as it highlights a widening gap between revenue growth and profitability, with the gross profit margin reported at a negative 30.00%. Furthermore, the company's balance sheet reveals a negative net worth of ₹14.87 crores, which underscores the severity of accumulated losses and raises questions about its financial viability. The long-term debt remains high at ₹18.53 crores, and the current liabilities have increased, indicating potential strain in working capital management. Overall, while Norris Medicines Ltd has shown revenue growth, the underlying operational metrics and balance sheet weaknesses suggest significant distress. The company has experienced an adjustment in its evaluation, reflecting these ongoing challenges. The operational losses over multiple quarters and the negative equity position indicate a critical need for strategic intervention to address these fundamental issues.