Are Sanwaria Consumer Ltd latest results good or bad?

Sanwaria Consumer Ltd's latest financial results for Q2 FY26 indicate significant operational challenges. The company reported net sales of ₹0.27 crores, reflecting a marginal quarter-on-quarter increase of 3.85% from the previous quarter, but this remains a minimal revenue base that is insufficient to cover its fixed costs. The net loss for the quarter was ₹1.11 crores, which represents a worsening of financial performance compared to the previous quarter. The company continues to grapple with a substantial depreciation burden of ₹1.20 crores, which far exceeds its revenue generation, leading to ongoing losses. Despite achieving a slight operational profit (PBDIT) of ₹0.09 crores, this improvement is overshadowed by the high depreciation costs, indicating a precarious financial situation. Sanwaria Consumer's negative book value raises concerns about its financial viability, as the company is technically insolvent. The return on equity (ROE) of 12.48% appears misleading due to the negative equity context, and the return on capital employed (ROCE) is deeply negative, reflecting an inability to generate returns from its capital. The company has seen a decline in promoter stake from 15.34% to 11.34% over the past year, suggesting a lack of confidence from its founders. Furthermore, there is no institutional interest in the stock, which underscores its uninvestable status. Overall, the results highlight Sanwaria Consumer's ongoing operational distress, with minimal revenue generation, mounting losses, and a deteriorating financial position. The company experienced an adjustment in its evaluation, reflecting the challenges it faces in the current market environment.