McNally Bharat Engineering Company Limited successfully implemented its NCLT-approved resolution plan (approved 19th December 2023), resulting in a dramatic financial turnaround with a standalone net profit of ₹345.22 crore for FY 2025-26 compared to a loss of ₹171.61 crore in FY25. This was primarily driven by an exceptional gain of ₹389.14 crore from extinguishment of liabilities totaling ₹690.28 crore under the resolution process.
The capital restructuring involved extinguishing 95% of existing equity capital and issuing fresh equity of ₹333.33 crore, with 90% held by new promoter Mandal Vyapaar Private Limited (an SPV of BTL EPC Limited), 5% by financial creditors, and 5% by existing public shareholders. The company completed final payments of ₹30 crore to financial creditors in October 2025 and received listing approvals from BSE and NSE, though trading permission remains pending.
Financially, the company reported revenue from operations of ₹73.51 crore (down from ₹105.02 crore in FY25) but achieved positive operational cash flow of ₹42.40 crore. Key challenges include material weaknesses in internal financial controls noted by auditors, who issued qualified opinions on the resolution plan accounting treatment and subsidiary financial statements.
The 63rd AGM convened on 25th September 2026 will address adoption of financial statements, reappointment of director Ms. Poonam Singhania, appointment of new statutory auditors Singhi & Co., and special business including continuation of director Mr. Mehar Chand Thakur aged 75+. The company maintains ongoing operations with projects including Jindal Stainless, Adani Infrastructure, and Coal India joint ventures, employing 323 personnel as of March 2026.
Contingent liabilities include bank guarantees of ₹186.05 crore outstanding and an EPF demand of ₹96.03 crore stayed by High Court. Related party transactions included ₹1,159.13 lakh interest paid to Mandal Vyapar and ₹329.16 lakh goods sales to subsidiaries. Management affirms going concern status based on implemented resolution plan and operational outlook.