Are Patspin India Ltd latest results good or bad?

Patspin India Ltd's latest financial results for Q2 FY26 reveal a complex situation characterized by both revenue growth and widening losses. The company reported net sales of ₹13.75 crores, reflecting an 18.84% increase year-on-year and a 22.88% rise quarter-on-quarter. However, this growth was overshadowed by a net loss of ₹3.03 crores, which represents a 39.63% deterioration compared to the same quarter last year. The operating margin for the quarter stood at -5.09%, a decline from -2.32% in the previous quarter, indicating challenges in maintaining operational efficiency despite the revenue growth. Similarly, the profit after tax (PAT) margin worsened to -22.04%, further highlighting the company's struggle to convert sales into profitability. Additionally, the company's balance sheet shows significant concerns, with negative shareholder funds of ₹33.86 crores and a negative book value of ₹27.48 per share. This situation reflects a severe erosion of equity capital due to accumulated losses, which have persisted for six consecutive quarters. While the company has maintained a net cash position, indicating that cash exceeds debt obligations, it faces substantial working capital challenges with current assets of only ₹3.08 crores against current liabilities of ₹56.20 crores. The absence of institutional interest and high promoter pledging further complicate its financial outlook. Overall, Patspin India Ltd's results illustrate a company grappling with persistent operational challenges, as revenue growth has not translated into improved profitability, raising concerns about its long-term sustainability. The company saw an adjustment in its evaluation, reflecting the ongoing difficulties it faces in achieving a turnaround.