Are Telogica Ltd latest results good or bad?

Telogica Ltd's latest financial results for Q2 FY26 reveal a company grappling with significant operational challenges and persistent losses. The reported net sales of ₹2.52 crores reflect a sharp year-on-year decline of 50.97% compared to the same quarter last year, although there was a sequential recovery of 69.13% from the previous quarter. This recovery, however, does not mitigate the concerning trend of declining revenues over the longer term, as the company struggles to regain its footing after a structural downturn. The net loss for the quarter was ₹0.41 crores, indicating a year-on-year deterioration of 37.88%. Despite showing some sequential improvement from the previous quarter's loss, the overall financial health remains precarious. The operating margin, reported at -17.46%, while better than the catastrophic -70.47% in Q1 FY26, continues to signal deep operational inefficiencies. The company’s average return on equity (ROE) of 3.22% is notably below peer averages, highlighting ongoing challenges in generating shareholder value. Telogica's financial performance has been characterized by a troubling trend of eroding equity, with shareholder funds decreasing significantly over the years. The balance sheet shows a concerning picture, with current liabilities outpacing shareholder funds, raising questions about the company's ability to sustain operations without additional capital. In light of these results, the company saw an adjustment in its evaluation, reflecting the ongoing struggles to establish operational viability amidst a highly competitive telecom equipment sector. Investors should closely monitor future quarterly results for signs of sustained improvement, particularly in revenue growth and operational margins, as the company navigates its path forward.