Are SEL Mfg. Co latest results good or bad?

SEL Manufacturing Company's latest financial results for Q2 FY26 reveal significant operational challenges. The company reported net sales of ₹11.81 crores, reflecting a substantial decline of 87.71% from the previous quarter and a year-on-year decrease of 91.72%. This marks the lowest quarterly revenue in the available dataset, indicating severe disruptions in business operations.
The net loss for the quarter was ₹27.93 crores, which, while showing a sequential improvement of 54.64% from the previous quarter's loss, still represents a deterioration compared to the ₹45.20 crore loss reported in Q2 FY25. The operating margin, excluding other income, was recorded at -51.82%, a notable decline from -22.03% in Q1 FY26, highlighting the company's ongoing struggle to manage costs amid shrinking revenues.

The financial position remains precarious, with a negative book value per share of ₹-17.02 and shareholder funds at ₹-56.39 crores, indicating that accumulated losses have eroded the company's equity base. The balance sheet reflects a long-term debt of ₹818.64 crores, although there has been a slight reduction from the previous year, suggesting some efforts at deleveraging.

Overall, SEL Manufacturing Company's operational metrics indicate a business model under extreme duress, with persistent losses and negative returns on capital employed. The company has faced significant challenges in maintaining market share and operational viability, leading to a revision in its evaluation. Investors should closely monitor future results for any signs of stabilization or improvement in financial performance.