Are Patspin India latest results good or bad?

Patspin India's latest financial results for the quarter ending September 2025 reveal a complex operational landscape characterized by significant revenue growth juxtaposed against deepening losses. The company reported net sales of ₹13.75 crores, reflecting a 22.88% increase from the previous quarter and an 18.84% year-on-year growth. This marks the highest quarterly sales performance in recent periods, suggesting some improvement in demand or market penetration.
However, the operational performance presents a stark contrast. The company recorded a net loss of ₹3.03 crores, which represents a 28.39% decline from the previous quarter's loss. The operating margin deteriorated to -5.09%, the lowest in seven quarters, indicating that the company is selling its products below the cost of production. This operational inefficiency raises concerns about the sustainability of its business model.

Additionally, the balance sheet reflects significant distress, with negative shareholder equity of ₹33.86 crores and a book value per share of ₹-27.48. The persistent losses over six of the last seven quarters, totaling ₹15.11 crores, highlight a troubling trend in the company's financial health. The interest coverage ratio is also concerning, as the operating profit before interest was insufficient to cover interest expenses, indicating challenges in meeting financial obligations.

The company saw an adjustment in its evaluation, reflecting these operational and financial challenges. The stagnant promoter holding at 36.26% and negligible institutional participation further underscore a lack of confidence in the company's turnaround prospects.

In summary, while Patspin India achieved notable revenue growth, the underlying operational issues, persistent losses, and negative equity position present significant challenges that could impact its future viability.