Are SEL Manufacturing Company Ltd latest results good or bad?

SEL Manufacturing Company Ltd's latest financial results indicate a challenging operational environment. In Q3 FY26, the company reported net sales of ₹96.12 crores, which reflects a significant quarter-on-quarter decline of 87.71%. However, on a year-on-year basis, this figure represents a growth of 46.41% compared to the same quarter last year. The net profit for the same period was a loss of ₹61.58 crores, worsening from a loss of ₹27.93 crores in the previous quarter, highlighting ongoing profitability challenges. The operating margin for Q3 FY26 was deeply negative at -22.03%, indicating that the core business operations are not generating profits. Additionally, the PAT margin stood at -64.07%, which, while an improvement from the previous quarter's -236.49%, still underscores significant operational difficulties. The annual performance for FY24 shows net sales of ₹374.00 crores, down 32.50% from ₹554.00 crores in FY23, with a net loss of ₹192.00 crores, slightly higher than the previous year's loss of ₹185.00 crores. The company has not achieved profitability in recent fiscal years, and the five-year sales growth rate of -38.08% indicates a sustained decline. SEL Manufacturing's balance sheet reveals a negative book value of ₹-17.02 per share, suggesting that liabilities exceed assets, which raises serious solvency concerns. The company has also accumulated long-term debt of ₹818.64 crores, which poses a significant burden given its negative equity position. In terms of market performance, SEL Manufacturing has underperformed relative to its peers in the garments sector, with a decline of 15.19% over the past year compared to a sector decline of 5.93%. This underperformance reflects company-specific operational issues rather than broader industry challenges. Overall, SEL Manufacturing Company Ltd's financial results reveal a company grappling with persistent losses, negative margins, and significant operational inefficiencies. The company saw an adjustment in its evaluation, reflecting the ongoing challenges it faces in achieving a turnaround.