Are Sibar Auto Parts Ltd latest results good or bad?

Sibar Auto Parts Ltd's latest financial results indicate a complex situation for the company. For FY25, Sibar managed to reach break-even with a net profit of ₹0.00 crore, a notable improvement from a loss of ₹1.00 crore in FY24. However, this marginal progress masks ongoing operational challenges, as the company reported net sales of ₹22.00 crores, reflecting a year-on-year growth of 15.79% from ₹19.00 crores in FY24. Despite this revenue growth, the operational efficiency remains a concern, with an operating profit margin of 0.0%, indicating minimal profitability. The company’s average return on equity (ROE) was recorded at a low 0.31%, significantly below industry standards, suggesting that it is struggling to generate returns for its shareholders. Furthermore, the return on capital employed (ROCE) averaged -10.33%, indicating persistent capital inefficiency. In the most recent quarterly results for the period ending December 2025, Sibar Auto Parts experienced a decline in net sales of 24.85% compared to the previous quarter, alongside a drastic drop in standalone net profit, which fell by 1,250.00%. This downturn follows a prior quarter where the company had shown some improvement, highlighting volatility in its financial performance. Overall, while Sibar Auto Parts has shown some signs of recovery by reaching break-even in FY25, the underlying operational challenges and recent quarterly declines suggest that the company continues to face significant hurdles. The company has seen an adjustment in its evaluation, reflecting these ongoing concerns.