Are Pasupati Fincap Ltd latest results good or bad?

Pasupati Fincap Ltd's latest financial results for Q2 FY26 indicate a challenging operational environment. The company reported net sales of ₹0.05 crores, which reflects minimal revenue generation, consistent with previous quarters where sales remained negligible. The net loss for the quarter was ₹0.07 crores, maintaining the same level as the prior quarter, suggesting no improvement in the company's financial trajectory. The company's operating margin was reported at a deeply negative 80%, indicating that operational costs significantly exceeded revenue. This trend has persisted, with cumulative losses of ₹0.14 crores for the first half of FY26 and no meaningful revenue generation observed. A critical concern highlighted in the results is the complete exit of promoters, whose shareholding dropped from 11.51% to 0.00%. This development raises significant questions regarding the company's viability and future prospects, as it reflects a lack of confidence from its founding stakeholders. The balance sheet shows a deterioration in financial health, with negative shareholder funds of ₹0.60 crores as of March 2025, worsening from negative ₹0.24 crores the previous year. Current liabilities exceed current assets, indicating liquidity challenges, and the company lacks a meaningful asset base to support operations. Overall, Pasupati Fincap Ltd's financial results reveal a company in severe distress, facing ongoing operational challenges, a lack of revenue, and significant governance concerns due to the promoter exit. The company experienced an adjustment in its evaluation, reflecting these ongoing issues.