Are Sarthak Global Ltd latest results good or bad?

Sarthak Global Ltd's latest financial results for Q3 FY26 indicate significant operational challenges. The company reported net sales of ₹0.10 crores, which reflects a drastic year-on-year decline of 97.28% from ₹3.68 crores in the same quarter last year. Although there was a marginal sequential improvement of 11.11% from the previous quarter's ₹0.09 crores, this remains substantially below the ₹3.55 crores recorded in Q4 FY25. The net profit for the quarter was a loss of ₹0.07 crores, marking a return to losses after a breakeven performance in Q2 FY26. The operating margin stood at a deeply negative 60.00%, worsening from the previous quarter's negative 33.33%. Additionally, the profit after tax margin deteriorated to negative 70.00%, highlighting severe operational distress. The financial metrics indicate that Sarthak Global is struggling with a significant revenue sustainability crisis, as employee costs alone exceeded total revenues. The company’s high leverage, with a debt-to-equity ratio of 4.08 times, raises concerns about its ability to service its debt amidst declining revenues. Overall, the financial data suggests that Sarthak Global is facing critical operational challenges, and the company saw an adjustment in its evaluation, reflecting these ongoing difficulties. Stakeholders should closely monitor the company's ability to stabilize its operations and address its financial distress.