Reported loss before tax of approximately ₹151.77 crore during the quarter ended March 31, 2026
Management attributes loss to exceptional, non-recurring and timing-related factors rather than deterioration in underlying business fundamentals
Detailed Breakdown of Loss Components
1. Jaipur–Sawai Madhopur Project Termination
Total impact: ₹22.42 crore
Project terminated by employer during the year
Inventory, work-in-progress and project assets reassessed at net realizable value
One-time charge of ₹12.46 crore to Statement of Profit and Loss
Exceptional item of ₹9.96 crore recognized in previous quarter
Matter currently sub-judice before judicial/forum authorities
Management confident of favorable outcome and substantial recovery based on legal advice and contractual entitlements
2. Revenue Reversal Due to Pending Departmental Approval
Impact: ₹17.65 crore
Invoices raised according to tendered contract price and contractual terms
Approval for billed amounts aggregating ₹17.65 crore remained pending at reporting date
Company issued credit notes and reversed corresponding revenue following conservative accounting approach
Management actively pursuing matter with concerned authorities
Expects to obtain requisite approvals and recoveries in due course
3. Additional Costs from Delayed Government Payments
Impact: Approximately ₹32.00 crore
Delayed receipt of certified payments from government departments on ongoing infrastructure projects
Resulted in extended execution periods, increased manpower and machinery deployment
Higher site overheads, costs and material/operating expense escalation
Company entitled to recover costs through price escalation provisions, extension of time claims, compensation events
Necessary claims submitted or under preparation for submission
Management believes substantial portion is recoverable
4. Expected Credit Loss and Other Provisions
Impact: Approximately ₹65 crore
Recognized in accordance with applicable accounting standards
Conservative financial reporting approach
Accounting-driven adjustments based on prudential assessment parameters
Do not necessarily represent actual cash losses
Management Assessment and Outlook
Significant portion of ₹151.77 crore loss pertains to exceptional items, prudential accounting adjustments, project-specific events and timing differences
Factors are either non-recurring and/or substantially recoverable
No material deterioration in underlying operational strength
Company maintains healthy order book
Ongoing execution of major infrastructure projects
Long-standing relationships with government authorities
Reasonable expectation of recovery of claims and receivables
Management confident regarding operational continuity, future business prospects and long-term financial viability
