Are Vista Pharmaceuticals Ltd latest results good or bad?

Vista Pharmaceuticals Ltd's latest financial results for Q2 FY26 reveal significant operational challenges. The company reported net sales of ₹1.46 crores, reflecting a year-on-year decline of 41.37% and a sequential decrease of 3.95% from the previous quarter. This marks the lowest quarterly revenue since Q4 FY24, indicating a sustained deterioration in commercial performance. The net loss for the quarter amounted to ₹2.59 crores, which represents a substantial increase in losses compared to ₹1.29 crores in Q1 FY26 and ₹0.97 crores in Q2 FY25. The operating margin plummeted to -235.62%, indicating that operating expenses are more than double the revenue generated, which raises serious concerns about the company's financial viability. Additionally, the company's operating profit before depreciation, interest, tax, and other income (PBDIT) showed a record loss of ₹3.44 crores, a dramatic deterioration from the previous quarter. The financial metrics suggest that Vista Pharmaceuticals is facing a critical cash flow crisis, with operating cash flow turning deeply negative at ₹6.98 crores for FY25. The company's evaluation has seen an adjustment, reflecting the ongoing operational struggles and the lack of institutional confidence, as evidenced by stagnant promoter holdings and negligible institutional participation. Overall, the financial data indicates that Vista Pharmaceuticals is in a precarious position, with mounting losses and significant operational challenges that require urgent attention.