Are Saumya Consultants Ltd latest results good or bad?

Saumya Consultants Ltd's latest financial results reflect significant operational challenges and a concerning trend in performance. In Q2 FY26, the company reported a net loss of ₹3.59 crores, marking a substantial decline compared to the previous year's profit of ₹13.45 crores in Q2 FY25. This represents a year-on-year decrease of 126.69%. The company's net sales also saw a drastic decline, falling 83.08% from ₹22.69 crores in Q2 FY25 to just ₹3.84 crores in the latest quarter, alongside a 58.03% drop from the previous quarter's sales of ₹9.15 crores. The operating margin for the quarter was reported at negative 109.64%, indicating severe operational distress, as the company faced a loss of ₹4.21 crores before depreciation, interest, tax, and other income. This is a stark contrast to the positive operating profit of ₹11.67 crores and a margin of 127.54% in Q1 FY26. The return on equity (ROE) has also deteriorated to negative 5.88%, highlighting a destruction of shareholder value. The financial performance over the half-year period shows a combined net sales figure of ₹12.99 crores, reflecting a 65.10% decline compared to the same period last year. The volatility in revenue, with sales fluctuating dramatically over recent quarters, raises fundamental questions about the sustainability of the company's business model. Additionally, the company has seen an adjustment in its evaluation, reflecting the ongoing challenges it faces in maintaining operational stability and profitability. The absence of institutional investor interest further underscores the market's skepticism regarding the company's future prospects. In summary, Saumya Consultants Ltd's latest results illustrate a company grappling with severe operational difficulties, marked by significant revenue volatility, negative margins, and a troubling trend in profitability. The financial metrics indicate a need for substantial improvements to regain investor confidence and stabilize its business operations.