Are T T latest results good or bad?

T T Limited's latest financial results for Q2 FY26 reflect significant operational challenges. The company reported net sales of ₹45.67 crores, which represents a sequential decline of 5.19% from the previous quarter and a year-on-year decrease of 15.91%. This marks the lowest quarterly revenue in the past eight quarters, indicating weakening demand for its products in a competitive textile market.
Net profit for the quarter stood at ₹0.18 crores, a substantial drop of 58.14% compared to the previous quarter and a decline of 63.27% year-on-year. The profit after tax margin also fell to 0.39%, down from 0.89% in Q1 FY26 and 0.90% in Q2 FY25, highlighting the company's struggle to maintain profitability amidst rising costs and declining sales.

Operating margins, excluding other income, contracted to 4.18%, down from 5.85% in the prior quarter and 5.36% a year earlier. This compression in margins reflects both revenue pressures and challenges in cost management, as the operating profit decreased by 32.27% quarter-on-quarter.

The company's financial position is further complicated by a high debt burden, with a debt-to-equity ratio of 2.60 times, indicating elevated financial stress. Interest expenses have also consumed a significant portion of revenue, constraining the company's bottom-line profitability.

Overall, T T Limited's financial performance in Q2 FY26 underscores a trend of declining revenues, compressed margins, and high leverage, which collectively pose substantial risks to its operational viability. Additionally, the company experienced an adjustment in its evaluation, reflecting these underlying challenges.