Are TIL latest results good or bad?

TIL's latest financial results for Q2 FY26 reveal a complex picture of operational performance. The company reported a revenue of ₹78.27 crores, reflecting a year-on-year growth of 15.72% compared to ₹67.64 crores in Q2 FY25. This growth is notable, especially when considering the sequential increase of 24.42% from the previous quarter. However, despite this positive revenue trend, TIL faced significant challenges in profitability, as indicated by a net loss of ₹7.73 crores, which marks a substantial deterioration of 261.21% compared to the same quarter last year.
The operating margin has contracted sharply to just 0.10%, down from 3.50% in the prior year, highlighting severe operational inefficiencies. Additionally, the company experienced the highest quarterly interest expense on record at ₹10.70 crores, further straining its financial position. This interest burden, coupled with a high debt-to-equity ratio averaging 3.35 times over the past five years, raises concerns about the sustainability of TIL's financial model.

The operational cash flow also presents a troubling scenario, with a significant outflow of ₹130.67 crores for the financial year ending March 2025, indicating a cash burn that is unsustainable without substantial operational improvements or capital restructuring.

Overall, TIL's financial results illustrate a company grappling with persistent losses, collapsing margins, and an unsustainable debt burden, despite some revenue growth. The company saw an adjustment in its evaluation, reflecting these ongoing challenges and the need for a strategic turnaround to improve its financial health.