Key Quantitative Figures - Standalone (₹ Crore)

Income Statement Q2 FY26:

  • Revenue from Operations: ₹1.87
  • Other Income: ₹5.73
  • Total Income: ₹7.60
  • Total Expenses: ₹295.66
  • Loss before tax: ₹(288.06)
  • Tax Expense: ₹0.71
  • Net Loss after tax: ₹(288.77)
  • Total Comprehensive Loss: ₹(286.78)

Comparative Figures:

  • Q1 FY26 Net Loss: ₹(267.68) crore
  • Q2 FY25 Net Loss: ₹(288.82) crore
  • FY26 Full Year Net Loss: ₹(1,185.01) crore

Balance Sheet Position as of June 30, 2026:

  • Paid-up Equity Share Capital: ₹7.41 crore (Face Value ₹2 per share)
  • Other Equity: ₹(11,829.16) crore
  • Current liabilities exceed current assets by ₹12,988.80 crore

Per Share Data:

  • Basic/Diluted EPS: ₹(7.83) for Q2 FY26

Auditor Qualifications and Key Matters

The statutory auditors, N V C & Associates LLP, issued a qualified conclusion on the financial results citing two main areas of concern:

1. Claims Receivable (Note 4a):

  • The company has recognized ₹10.00 crore in claims from ongoing, completed and terminated contracts based on an independent expert's assessment of likely settlement in its favor.
  • Due to prolonged elapsed time and non-crystallization with counterparts, auditors are unable to comment on the realizability of this amount.

2. Disputed Penal Interest (Note 4b):

  • Lenders levied penal interest/incremental interest/other charges of ₹11.74 crore for Q2 FY26
  • Cumulative disputed charges amount to ₹923.28 crore up to June 30, 2026, comprising:
  • ₹403.50 crore levied by lenders in their loan statements
  • ₹519.78 crore levied by CFM Assets Reconstruction Company Private Limited (ARC)
  • The ARC has purchased debt from lenders and is considering settling based on outstanding principal with waiver of interest and penal charges, pending senior management approval
  • Management is disputing these charges and has not debited them to P&L, considering them contingent liabilities

Material Uncertainty Relating to Going Concern (Note 6)

The auditors highlight severe going concern uncertainties:

  • Lenders recalled all loans and facilities in previous years
  • Current liabilities exceed current assets by ₹12,988.80 crore
  • Trading in equity shares is suspended
  • Creditors have filed winding-up petitions
  • Bankers have initiated recovery actions including embargo on company assets
  • Severe manpower issues and defaults on statutory obligations
  • Facilities marked as NPA since June 2017

Resolution Plan Status:

  • More than 50% of debt assigned to two asset reconstruction companies
  • Company negotiating proposal for waiver of interest/penal charges and haircut on principal outstanding
  • Plan is based on a potential investor and positive discussions with ARCs
  • Resolution plan approved by some lenders in 2021 but still under discussion
  • Success involves material uncertainties that may cast significant doubt on going concern assumption

Emphasis of Matter - Arbitration Awards (Note 5)

  • Company has recognized ₹532.91 crore in trade receivables from arbitration awards in its favor
  • Clients have preferred appeals to set aside arbitration awards
  • Company confident of recovery but dependent on final outcome of appeals and negotiations

Consolidated Results Overview (₹ Crore)

Q2 FY26 Consolidated:

  • Total Income: ₹203.83
  • Total Expenses: ₹374.91
  • Loss before tax: ₹(193.58)
  • Net Loss after tax: ₹(372.75)
  • Total Comprehensive Loss: ₹(342.07)
  • Loss attributable to owners: ₹(370.15)
  • Current liabilities exceed current assets by ₹14,495.29 crore

Subsidiary Matters

  • Ansaldo Caldaie Boilers India Pvt Ltd has not refunded ₹16.64 crore share application money despite RBI directive dated August 16, 2018
  • Several subsidiaries' financial statements carry material uncertainty related to going concern
  • Some joint ventures not consolidated due to unavailability of financial statements