Are Priya Ltd latest results good or bad?

Priya Ltd's latest financial results for Q3 FY26 present a complex picture. The company reported a net profit of ₹7.13 crores, a notable turnaround from a loss of ₹0.95 crores in the previous quarter. However, this profit appears to be largely driven by an accounting adjustment related to depreciation rather than any operational improvement, as the company continues to report zero sales for the seventh consecutive quarter. The revenue figures remain stagnant at ₹0.00 crores, indicating a complete cessation of business activities. The operating loss, excluding other income, was ₹0.03 crores, while interest expenses remained constant at ₹0.90 crores, further highlighting the lack of operational cash generation. Year-on-year comparisons reveal that the current quarter's profit is not indicative of a genuine recovery, as the company had reported a loss of ₹1.05 crores on zero revenues in Q3 FY25. The balance sheet reflects significant distress, with negative equity of ₹163.14 per share and total liabilities exceeding current assets by a substantial margin. The company's shareholder funds stand at negative ₹48.98 crores, indicating a technically insolvent position. Despite a recent increase in stock price, the valuation metrics suggest that the market capitalization is trading at a premium to its negative book value, raising concerns about the sustainability of this valuation. Overall, Priya Ltd's financial results indicate a company in a precarious situation, with operational activities halted and significant liabilities, leading to an adjustment in its evaluation. The absence of institutional interest and the ongoing operational challenges suggest that the company is facing considerable hurdles moving forward.