Are P. H. Capital Ltd latest results good or bad?

P. H. Capital Ltd's latest financial results for the quarter ended December 2025 reveal significant operational challenges. The company reported a dramatic decline in revenue, with net sales dropping to ₹1.55 crores, reflecting a 95.00% decrease from the previous quarter and a staggering 97.92% year-on-year contraction. This revenue collapse is one of the steepest observed in the non-banking financial company (NBFC) sector during this reporting period. The net profit for the quarter was reported at a loss of ₹1.26 crores, which is a 40.00% decline compared to the previous quarter and a shift from a profit of ₹2.07 crores in the same quarter last year. The operating margin also deteriorated severely, showing a negative margin of -143.23%, down from a positive 3.87% in the year-ago quarter. This indicates a complete breakdown in the company's business economics, as it has transitioned from profitability to substantial operating losses. The nine-month performance for FY26 shows cumulative net sales of ₹90.52 crores, down 68.95% from the previous year, and a cumulative loss of ₹2.16 crores, contrasting sharply with a profit of ₹14.56 crores in the same period last year. The company's return on equity has also significantly declined, with the latest figure at 2.42%, compared to a five-year average of 22.33%, indicating a deterioration in capital efficiency. In light of these results, P. H. Capital has experienced an adjustment in its evaluation, reflecting the ongoing operational difficulties and the disconnect between its stock price performance and fundamental financial health. The company is facing critical operational challenges that must be addressed to restore investor confidence and stabilize its financial position.