Are Unitech Ltd latest results good or bad?

Unitech Ltd's latest financial results for the quarter ending December 2025 reveal a complex picture characterized by significant operational challenges despite some revenue growth. The company reported consolidated net sales of ₹140.96 crores, reflecting a sequential increase of 3.61% from the previous quarter and a substantial year-on-year growth of 91.21%. However, this revenue growth is overshadowed by the company's ongoing financial distress, as evidenced by a consolidated net loss of ₹851.02 crores, which, while showing a quarter-on-quarter improvement of 48.81%, still indicates severe cash hemorrhaging. The operational metrics highlight a troubling scenario: the company's interest expense of ₹428.79 crores in Q3 FY26 exceeded its revenue by over three times, illustrating a critical inability to service its debt obligations. The operating profit before depreciation, interest, and tax (PBDIT) recorded a loss of ₹238.66 crores, leading to an operating margin of -169.31%, which signifies deep-seated inefficiencies in its core operations. Moreover, Unitech's financial position is further complicated by negative shareholder equity of ₹6,817.66 crores, indicating that liabilities far exceed assets, which raises concerns about the company's solvency. The company's cash flow statement for FY25 also reveals a negative operating cash flow of ₹73.00 crores, suggesting ongoing cash consumption rather than generation. In summary, while Unitech Ltd has achieved notable revenue growth, the underlying financial metrics point to a company grappling with severe operational inefficiencies and a burdensome debt load. The company saw an adjustment in its evaluation, reflecting the ongoing challenges it faces in achieving sustainable profitability and operational stability.