Are Sindhu Trade Links Ltd latest results good or bad?

Sindhu Trade Links Ltd's latest financial results for Q2 FY26 reflect significant operational challenges. The company reported net sales of ₹124.33 crores, marking a substantial decline of 66.36% year-over-year and a 24.80% decrease from the previous quarter. This represents the lowest quarterly revenue recorded in the available data history, indicating a persistent downward trend in business momentum. Net profit for the quarter was ₹10.82 crores, which is a dramatic drop of 90.72% year-over-year and a 42.42% decline sequentially. The profit margins also show concerning trends, with the PAT margin falling to 8.70%, down from 31.54% in the same quarter last year. Additionally, the operating margin, excluding other income, turned negative at -1.63%, although this is an improvement from -25.06% in the previous year, highlighting ongoing operational distress. The financial performance is further complicated by a notable shift in the company's shareholding structure. Promoter holding plummeted from 74.97% to just 0.28% in a single quarter, raising significant governance concerns and questions about the company's strategic direction. Meanwhile, foreign institutional investors slightly increased their stake to 2.93%, but this increase is minimal compared to the promoter exit. Overall, the results indicate a severe contraction in revenue and profitability, coupled with alarming governance issues, suggesting that Sindhu Trade Links Ltd is facing critical operational and strategic challenges. The company has seen an adjustment in its evaluation, reflecting these deteriorating fundamentals.