Are Olympic Cards latest results good or bad?

Olympic Cards' latest financial results for Q2 FY26 highlight a significant revenue growth of 32.03% year-on-year and 41.20% quarter-on-quarter, reaching ₹3.05 crores. This growth, however, is juxtaposed with ongoing profitability challenges, as the company reported a net loss of ₹1.00 crore, marking its sixth consecutive quarter of losses. The operating margin remains deeply negative at -9.51%, despite a slight improvement from -17.13% in the previous quarter.
The company's financial health is further strained by a substantial debt burden, with a debt-to-equity ratio of 18.67 times, indicating excessive leverage that constrains financial flexibility. The operational metrics reveal a persistent struggle to convert revenue growth into profitability, as the gross profit margin remains negative at -23.28%.

While the recent quarterly performance shows some operational improvements, including a reduction in the operating loss before depreciation, interest, and tax, the overall trajectory suggests that revenue growth alone is insufficient to address the underlying structural issues within the company's cost base.

In light of these results, Olympic Cards experienced an adjustment in its evaluation, reflecting the complexities of its financial situation. The company must navigate significant challenges to achieve sustainable profitability, including addressing its high debt levels and improving operational efficiency.