Are Tavernier Resources Ltd latest results good or bad?

Tavernier Resources Ltd's latest financial results present a complex picture characterized by significant operational challenges. For the fiscal year 2025, the company reported a net profit of ₹2.00 crores, a notable shift from breakeven results in the previous year. However, this profit was entirely driven by other income, as the company recorded zero net sales, marking a complete decline from ₹1.00 crore in FY24. This absence of operational revenue raises concerns about the sustainability of the reported profit and the overall viability of the business model. The company's five-year sales growth trajectory reflects a consistent decline, with a compound annual growth rate (CAGR) of -17.41%. This trend underscores the challenges faced by Tavernier Resources in maintaining operational activity, as sales have fallen from ₹4.00 crores in FY2022 to zero in FY2025. The return on equity (ROE) for the latest period stands at 44.16%, but this figure is misleading as it is based on non-recurring income rather than sustainable operational performance. The five-year average ROE of 7.32% suggests underlying weaknesses in capital efficiency. In the most recent quarterly results for December 2025, the company experienced a quarter-on-quarter decline in net sales of -56.34%, following a previous quarter that had shown a significant increase. The standalone net profit also saw a substantial decrease of -76.27% compared to the prior quarter. The operating profit margin, excluding other income, was negative, indicating further operational difficulties. Overall, Tavernier Resources Ltd's financial data illustrates a company struggling with a lack of operational revenue and declining sales, raising critical questions about its future viability. The company has seen an adjustment in its evaluation, reflecting these ongoing challenges.