Are Saptak Chem & Business Ltd latest results good or bad?

Saptak Chem & Business Ltd's latest financial results indicate a concerning operational status. In Q3 FY26, the company reported a net profit of ₹-0.11 crores, reflecting a quarterly loss, and net sales remained at ₹0.00 crores, indicating no revenue generation. This marks a continuation of a trend where the company has not recorded any sales since March 2018, effectively rendering it dormant.
The operating loss for Q3 FY26 was ₹-0.11 crores, which is a sequential increase from previous quarters, highlighting a deterioration in the company's ability to manage administrative expenses amidst a complete lack of operational activities. Over the nine-month period ending December 2025, Saptak Chem accumulated losses of ₹0.19 crores, again with zero revenues. Notably, employee costs have risen to ₹0.02 crores in Q3 FY26, raising questions about the nature of these expenditures given the absence of business operations.

The balance sheet reveals a negative net worth, with shareholder funds reported at ₹-2.26 crores. Current assets are minimal, and the company has no fixed assets or investments. The book value per share stands at ₹-2.10, indicating a complete erosion of shareholder equity.

In terms of profitability metrics, the average Return on Capital Employed (ROCE) is reported at a low 0.99%, with the latest ROCE being negative at -9.00%. The company's performance in terms of sales and EBIT growth over the past five years is stagnant at 0.00%, underscoring the absence of any business activity or growth prospects.

Additionally, the shareholding pattern shows a significant decline in promoter holding, which decreased to 12.58% from 16.31% in the previous quarter, signaling a potential lack of confidence in the company's future. Institutional participation is virtually non-existent, with total institutional holdings at a negligible 3.00%.

Overall, Saptak Chem's financial results depict a company in severe distress, characterized by ongoing losses, negative net worth, and no operational activities. The company saw an adjustment in its evaluation, reflecting the challenges it faces in maintaining its status as a listed entity.