Are Supreme Infrastructure India Ltd latest results good or bad?

Supreme Infrastructure India Ltd's latest financial results for Q2 FY26 present a mixed and complex picture. The company reported net sales of ₹13.50 crores, reflecting a sequential improvement of 62.26% compared to the previous quarter and a year-over-year increase of 32.48%. However, this uptick in sales occurs from a historically low base, indicating ongoing challenges in revenue generation. In contrast, the consolidated net profit reported was ₹6,305.93 crores, which appears to be largely influenced by a one-time accounting adjustment rather than a reflection of sustainable operational performance. The operational metrics reveal significant distress, with an operating profit margin (excluding other income) at -26.89%, indicating persistent negative margins over recent quarters. This trend underscores the company's ongoing struggles with project execution and cost management. The balance sheet also raises concerns, as shareholder funds are reported at negative ₹4,870.54 crores, illustrating a complete erosion of equity. The company continues to face a substantial interest burden, with interest expenses reaching ₹155.36 crores, which is disproportionately high compared to its revenue generation capacity. Overall, while there is a sequential improvement in sales, the underlying operational performance remains deeply troubling, characterized by negative margins and significant financial distress. The company saw an adjustment in its evaluation, reflecting these ongoing challenges and the need for substantial operational and financial restructuring to ensure viability moving forward.