Are Organic Coatings Ltd latest results good or bad?

The latest financial results for Organic Coatings Ltd reveal a company facing significant operational challenges. In the quarter ended September 2025, the company reported net sales of ₹5.53 crores, which represents a decline of 21.78% compared to the previous quarter. This decline is part of a broader trend, as revenues have decreased sharply from ₹13.06 crores in the same quarter of the previous year, indicating a substantial revenue contraction of 57.66% over two years. The company continues to experience operating losses, with an operating margin of -3.98% in Q2 FY26, although this marks a slight improvement from -6.65% in the previous quarter. The net loss for the quarter was ₹0.60 crores, which is an improvement from the loss of ₹0.85 crores in Q1 FY26, but still highlights ongoing unprofitability. The persistent negative profitability is underscored by a PAT margin of -10.85%. Additionally, the promoter shareholding has significantly decreased from 55.83% to 22.54% over the past year, raising concerns about management confidence in the company's future. This decline in promoter ownership, coupled with a lack of institutional interest, suggests a challenging environment for Organic Coatings. Overall, the financial metrics indicate a company in distress, characterized by chronic losses, a significant drop in revenues, and structural weaknesses that raise questions about its operational viability. Furthermore, the company has seen an adjustment in its evaluation, reflecting the market's recognition of these ongoing challenges.