Are Shivam Autotech Ltd latest results good or bad?

Shivam Autotech Ltd's latest financial results for Q3 FY26 indicate significant challenges across multiple operational metrics. The company reported a net loss of ₹24.53 crores, which represents a substantial decline compared to the previous quarter. Revenue for the quarter was ₹96.18 crores, reflecting a quarter-on-quarter decrease of 15.06% and a year-on-year decline of 14.69%. This marks the third consecutive quarter of declining revenues, highlighting ongoing difficulties in maintaining sales momentum despite operating within a generally favorable auto components sector. The operating margin has contracted sharply to 5.25% from 9.06% in the previous quarter, indicating pressures on profitability. Additionally, the interest burden reached a record high of ₹19.05 crores, which consumed a significant portion of the company's operating profits, leading to a loss before tax of ₹23.23 crores. The interest coverage ratio has deteriorated to 0.27 times, raising concerns about the company's ability to service its debt, which is already at a critical level with a debt-to-equity ratio of 190.74 times. Over the nine months ending December 2025, cumulative losses amounted to ₹54.61 crores, with revenues totaling ₹300.14 crores, down 13.41% year-on-year. The company's financial health appears increasingly precarious, as evidenced by the erosion of shareholder equity and the inability to generate sufficient cash flow to manage its debt obligations. Overall, the results reflect a downward trend in financial performance for Shivam Autotech Ltd, prompting an adjustment in its evaluation. The company faces significant operational and financial hurdles that will require careful monitoring and decisive action to address its ongoing challenges.