Are Risa Internatio. latest results good or bad?

Risa International's latest financial results for Q2 FY26 reveal a concerning operational trend characterized by a complete absence of revenue generation. The company reported net sales of ₹0.00 crores, marking the seventh consecutive quarter without any revenue. This prolonged period of inactivity suggests a fundamental cessation of business operations, particularly in its core textile trading segment.
In terms of financial performance, Risa International recorded a net loss of ₹0.10 crores for the quarter, which is a slight improvement from the ₹0.15 crores loss in the previous quarter. However, this marginal reduction in losses was overshadowed by rising interest costs, which increased to ₹0.07 crores from ₹0.05 crores. The operational loss (PBDIT) was reported at ₹0.03 crores, showing a reduction from ₹0.10 crores in Q1 FY26, but the overall financial situation remains unsustainable due to the lack of revenue.

The company's balance sheet has deteriorated significantly, with negative shareholder equity of ₹3.65 crores as of March 2025, reflecting a dramatic decline from a positive equity position in previous years. Current assets have plummeted by 99.8% over five years, leaving Risa International with only ₹0.09 crores in current assets against current liabilities of ₹8.57 crores, indicating a severe working capital deficit.

Additionally, the stock has underperformed significantly, with a one-year return of -40.68%, which is notably worse than the broader market index. The company's valuation metrics, including a negative price-to-book ratio of -3.10x, further highlight the financial distress it is experiencing.

Overall, Risa International's financial results indicate a critical business model failure, with no visible path to recovery. The company has seen an adjustment in its evaluation, reflecting the ongoing challenges it faces in generating revenue and maintaining operational viability.