Are Tulsyan NEC Ltd latest results good or bad?

Tulsyan NEC Ltd's latest financial results for Q3 FY26 indicate a significant operational crisis. The company reported net sales of ₹156.10 crores, reflecting a sharp decline of 31.89% compared to the previous quarter and a 13.39% decrease year-on-year. This marks the lowest quarterly revenue in recent history, suggesting severe challenges in demand or market share within the TMT bar segment. The net profit for the quarter was a loss of ₹28.63 crores, which represents a substantial deterioration from the previous quarter's loss of ₹6.09 crores. This translates to a dramatic change of 370.11% in net profit compared to the prior quarter. The operating profit, excluding other income, fell to -₹11.00 crores, down from a positive ₹2.38 crores in Q2 FY26, indicating a collapse in core operational performance. The operating margin also turned deeply negative at -7.05%, a significant decline from the previous quarter's margin of 1.04%. Interest costs remained high at ₹17.41 crores, only slightly lower than the previous quarter, contributing to the widening losses. The company's financial metrics reveal a precarious situation, with the debt burden and negative operating margins raising concerns about its viability. Overall, the results reflect a critical operational distress for Tulsyan NEC, with the company facing mounting losses, collapsing revenues, and significant challenges in maintaining profitability. Additionally, the company saw an adjustment in its evaluation, reflecting the ongoing struggles in its financial performance and operational stability.