Are Simplex Mills Company Ltd latest results good or bad?

The latest financial results for Simplex Mills Company Ltd reveal a continuation of its challenging operational landscape. In the second quarter of FY26, the company reported net sales of ₹0.06 crores, reflecting a year-on-year growth of 100.00%. However, this figure is misleading as it compares against a quarter with zero revenue, indicating no genuine recovery in business operations. The company continues to face a net loss of ₹0.02 crores, maintaining a flat position compared to the previous quarter. The operating loss, excluding other income, was reported at ₹0.12 crores, resulting in an operating margin of -200.0%. This highlights that the core textile operations are not generating any positive contribution, further emphasizing the company's struggle to maintain meaningful business activity. The balance sheet shows negative shareholder funds of ₹3.48 crores, indicating that liabilities exceed assets, and a negative book value per share of ₹1,159.27, which underscores the erosion of shareholder wealth. Despite these challenges, the company has seen an adjustment in its evaluation, reflecting the ongoing financial distress and lack of operational viability. The minimal sales figures and persistent losses suggest that Simplex Mills remains in a precarious position, with no clear path to recovery or growth. The financial data indicates that the company is effectively dormant, relying on other income streams to prevent deeper losses while its core operations remain stagnant.