Are Shanti Overseas latest results good or bad?

Shanti Overseas has reported its financial results for the quarter ended September 2025, which reveal a complex picture of operational challenges and volatility. The company recorded net sales of ₹2.64 crores, reflecting a year-on-year growth of 29.41% compared to ₹2.04 crores in the same quarter last year. However, this figure represents a sequential decline of 24.79% from ₹3.51 crores in the previous quarter, indicating difficulties in maintaining sales momentum.
The operating profit margin has significantly deteriorated, collapsing to -82.95% in Q2 FY2026 from 8.26% in the prior quarter. This sharp decline underscores serious profitability issues, as the company is incurring substantial operating losses. The net profit for the quarter was reported at -₹0.12 crores, marking a notable decline in profitability compared to the previous quarter.

Additionally, the company's return on equity (ROE) has turned negative at -26.09%, signaling that it is currently destroying equity capital rather than generating returns. The operational challenges are further exacerbated by the complete exit of promoters from the company, which suggests a loss of confidence in its future prospects. This exit, along with the absence of institutional investors, places the company in a precarious position, heavily reliant on retail investors.

Overall, Shanti Overseas has experienced significant operational instability, with a marked decline in profitability and a concerning financial trajectory. The company saw an adjustment in its evaluation, reflecting the ongoing challenges and the need for a strategic turnaround to address its fundamental issues.