Are Winsome Breweries Ltd latest results good or bad?

The latest financial results for Winsome Breweries Ltd for Q2 FY26 indicate a challenging operational environment. The company reported a net profit of ₹0.21 crores, which reflects a quarter-on-quarter decline of 16.00% from ₹0.25 crores in Q1 FY26 and a year-on-year decline of 47.50% from ₹0.40 crores in Q2 FY24. Notably, the company has reported zero net sales for seven consecutive quarters, indicating a complete cessation of its brewing and beverage operations. Instead, its revenue stream is entirely reliant on other income, which was ₹0.51 crores in Q2 FY26, slightly higher than the previous quarter. The operational performance remains concerning, as the operating profit excluding other income was negative at ₹0.07 crores, highlighting the absence of any business activity. The company's return on equity averaged 2.92%, which reflects weak profitability relative to shareholder funds. Additionally, the average return on capital employed (ROCE) was negative, indicating value destruction when considering operational activities. The balance sheet shows that Winsome Breweries maintains a debt-free structure, with total shareholder funds of ₹34.19 crores and fixed assets valued at ₹9.58 crores. However, the company's reliance on non-operating income raises questions about its long-term sustainability as a business. The cash flow dynamics reveal negative operating cash flows, with the company unable to generate cash from its operations, relying instead on liquidating investments to fund its cash deficits. Overall, Winsome Breweries Ltd's financial results reflect a company that is currently operationally dormant, surviving on other income while facing significant challenges in reviving its core business activities. The company saw an adjustment in its evaluation, reflecting the ongoing concerns regarding its operational viability and financial health.