Are Rajnish Wellness Ltd latest results good or bad?

The latest financial results for Rajnish Wellness Ltd highlight significant operational challenges despite a notable increase in revenue. In the quarter ended December 2025, the company reported net sales of ₹23.24 crores, reflecting a quarter-on-quarter growth of 93.67% compared to ₹12.00 crores in the previous quarter. This growth is also impressive on a year-on-year basis, with a 156.51% increase from ₹9.06 crores in the same quarter last year. However, this topline growth has not translated into profitability. The company incurred a net loss of ₹0.91 crores in Q3 FY26, a stark contrast to the net profit of ₹0.06 crores reported in Q2 FY26. This represents a significant deterioration in financial performance, as the operating profit before depreciation, interest, and tax (PBDIT) also fell to a loss of ₹1.37 crores, compared to a loss of ₹0.23 crores in the previous quarter. The operating margin for the quarter was recorded at -5.90%, down from -1.92% in Q2 FY26, indicating worsening operational efficiency. The financial performance over the past nine months of FY26 shows a cumulative revenue of ₹39.80 crores with a net loss of ₹0.63 crores, contrasting with the previous fiscal year where the company managed to break even. The volatility in revenue and the inability to maintain consistent profitability raise concerns about the company's operational stability and cost management. Additionally, the company’s return on equity (ROE) has turned negative at -0.10%, reflecting ongoing losses and a lack of shareholder value creation. The balance sheet remains virtually debt-free, which provides some financial flexibility, but the absence of retained earnings and institutional interest raises questions about future growth prospects. Overall, Rajnish Wellness Ltd's latest results underscore a critical profitability crisis, with substantial revenue growth overshadowed by significant operational inefficiencies. The company has seen an adjustment in its evaluation, reflecting these ongoing challenges and the need for a fundamental operational overhaul to achieve sustainable profitability.