Are Salem Erode Investments Ltd latest results good or bad?

Salem Erode Investments Ltd's latest financial results for Q2 FY26 indicate a challenging operational environment. The company reported a net loss of ₹1.20 crore, which reflects a significant decline compared to both the previous quarter and the same quarter last year, with losses widening by 21.21% QoQ and 41.18% YoY. Revenue also contracted, totaling ₹0.89 crore, down 18.35% from the prior quarter and 25.83% from the previous year, marking the weakest quarterly revenue performance in recent times. The operating margin deteriorated sharply to -57.30%, a decline from -23.85% in the prior quarter, highlighting ongoing difficulties in generating positive cash flow from core operations. Employee costs exceeded total revenue, contributing to an operating profit before depreciation, interest, and tax (PBDIT) of -₹0.51 crore, further emphasizing the company's unsustainable cost structure. Return on equity (ROE) averaged a mere 0.68%, with the latest quarterly ROE plunging to -22.76%, indicating a severe erosion of shareholder value. The return on capital employed (ROCE) stands at -10.39%, underscoring the company's inability to generate positive returns from its capital. Overall, these results reflect a company facing significant operational and financial challenges, with persistent losses and a lack of visible turnaround strategies. Additionally, the company saw an adjustment in its evaluation, which underscores the severity of its current financial situation.