Are Yogi Ltd latest results good or bad?

Yogi Ltd's latest financial results for Q3 FY26 reveal significant operational challenges, marked by a sharp decline in both net profit and net sales. The company reported a net profit of ₹1.47 crores, which represents a substantial decrease of 84.18% compared to the previous quarter, where it stood at ₹9.29 crores. Concurrently, net sales fell to ₹57.25 crores, down 57.46% from ₹134.59 crores in Q2 FY26. This drastic reduction in profitability and revenue indicates potential issues within the company's operational framework. The company's PAT margin also contracted to 3.27%, down from 6.90% in the prior quarter, further highlighting the strain on operational efficiency. Additionally, the operating profit margin (excluding other income) decreased to 5.83% from 9.46%, suggesting a decline in operational effectiveness. The increase in interest costs, which surged to ₹2.09 crores from ₹0.49 crores, points to rising leverage and working capital needs, compounding the company's financial pressures. Despite these challenges, Yogi Ltd has shown growth over the nine-month period ending December 2025, with a consolidated net profit of ₹17.08 crores on revenues of ₹282.13 crores, indicating a recovery from minimal operations in the previous year. However, the recent quarterly performance raises concerns about the sustainability and quality of these earnings, particularly given the heavy reliance on other income, which constituted a significant portion of profit before tax in Q3 FY26. The company's balance sheet reflects structural concerns, with a notable increase in current liabilities, suggesting aggressive expansion funded through short-term credit. The absence of institutional investors further underscores a lack of confidence in the company's fundamentals. In summary, Yogi Ltd's latest results indicate a concerning reversal in operational performance, with significant declines in profitability and sales, raising questions about the sustainability of its business model. The company has experienced an adjustment in its evaluation, reflecting the challenges it faces in establishing stable and profitable operations moving forward.