Are Snowman Logistics Ltd latest results good or bad?

Snowman Logistics Ltd's latest financial results for the quarter ending December 2025 reveal a complex picture of operational performance amidst ongoing challenges. The company reported net sales of ₹143.72 crores, reflecting a year-on-year growth of 9.00% compared to ₹131.85 crores in the same quarter last year. However, this growth is tempered by a sequential decline of 7.66% from the previous quarter, marking the second consecutive quarter of revenue contraction. The operating profit before depreciation, interest, and tax (excluding other income) was ₹22.76 crores, which indicates a year-on-year increase of 15.18%. This resulted in an operating margin of 15.84%, an improvement of 85 basis points from the prior year. Despite these operational gains, the company faced significant financial pressure with a net loss of ₹1.87 crores, a substantial deterioration compared to the loss of ₹0.61 crores in the same quarter last year, representing a negative growth of 206.56%. The rising interest costs, which increased by 11.34% year-on-year to ₹7.07 crores, alongside climbing depreciation expenses, have contributed to the company's ongoing profitability challenges. The fixed costs have effectively consumed the operating profit, leading to a pre-tax loss of ₹3.20 crores. Additionally, the company's return on equity (ROE) and return on capital employed (ROCE) metrics remain concerning, with ROE at 0.72% and ROCE at 3.27%, indicating inefficiencies in capital utilization. The debt-to-equity ratio stands at 0.79, reflecting moderate leverage, but the ability to service this debt is under strain, as evidenced by an EBIT-to-interest coverage ratio of just 1.30x. Overall, while Snowman Logistics has demonstrated some operational improvements, the persistent losses, rising costs, and structural challenges in profitability overshadow these gains. The company saw an adjustment in its evaluation, reflecting the complexities of its financial situation and the need for a credible path towards sustainable profitability.