Are Waterbase Ltd latest results good or bad?

Waterbase Ltd's latest financial results for the quarter ending December 2025 present a complex picture of operational performance. The company reported a net profit of ₹-2.63 crores, marking the third consecutive quarter of losses. This figure represents a significant deterioration of 51.39% quarter-on-quarter and 32.74% year-on-year. The negative profit margin of 2.59% further underscores the challenges Waterbase faces in achieving profitability. In contrast, the company achieved a notable revenue of ₹101.56 crores, reflecting a robust growth of 24.28% from the previous quarter and an impressive 52.06% year-on-year increase. This revenue growth indicates strong demand for Waterbase's shrimp feed products, yet it has not translated into operational efficiency or improved profitability, raising concerns about the sustainability of its business model. The operating margin, while showing a sequential improvement from -5.64% to -1.17%, remains negative, indicating ongoing operational inefficiencies. The company's return on equity (ROE) stands at a concerning negative 12.29%, highlighting significant value destruction for shareholders. Additionally, the cash flow from operations turned negative at ₹-12.00 crores, indicating that the core business is consuming cash rather than generating it. Overall, Waterbase Ltd's financial results reveal a stark disconnect between its revenue growth and profitability, suggesting that while the company is capable of generating sales, it struggles with cost management and operational effectiveness. The company saw an adjustment in its evaluation, reflecting these ongoing challenges. Investors should closely monitor future results for signs of operational improvement or further deterioration.