C & C Constructions Limited reported a standalone net loss of ₹14.75 crore for the quarter ended June 30, 2026, marking a substantial improvement from the ₹270.46 crore net loss recorded in the quarter ended March 31, 2026. The construction firm, which operates under ongoing liquidation proceedings despite being acquired as a going concern, generated total income of ₹7.32 crore against total expenses of ₹22.07 crore. The narrowing loss reflects lower finance costs and other expenses compared to the prior quarter, although revenue from operations remained at nil. Shareholders should note that these financial results are subject to material adjustments pending the final resolution of the National Company Law Tribunal (NCLT) proceedings and receipt of complete records from the Liquidator.

The Board of Directors approved the unaudited financial results on August 07, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s A S G & Associates, Chartered Accountants, issued a limited review report on the standalone and consolidated financial statements. The statutory auditors included an emphasis of matter paragraph highlighting that the financial statements have been prepared based on limited information available from the Liquidator as of December 27, 2024. Consequently, the current accounts do not reflect adjustments for asset/liability classification or impairment assessments arising from the sale certificates issued in August and December 2024.

Financial Performance Highlights

The consolidated results mirrored the standalone figures, reporting a net loss of ₹14.76 crore for the quarter. Finance costs stood at ₹12.85 crore, while employee benefit expenses were ₹3.01 crore. Other income contributed ₹7.32 crore to the top line, primarily offsetting operational expenses. The earnings per share (basic and diluted) stood at ₹(0.58) for the quarter, compared to ₹(10.63) in the preceding quarter.

Regulatory and Legal Status

The company’s financial position remains contingent on the outcome of proceedings before the Hon’ble NCLT. Although M/s R K Constructions acquired the company as a going concern on December 27, 2024, the formal closure of the liquidation process is still pending due to non-filing of requisite applications by the Liquidator. Management has filed an application with the NCLT seeking specific reliefs and concessions regarding accounting treatments associated with the liquidation process. Under Section 53 of the Insolvency and Bankruptcy Code (IBC), no additional liabilities have been recognized for obligations incurred before the issuance of the Sale Certificate.

Pending Litigations and Compliance

The auditors highlighted two key legal matters in their review report:

• The company has received notices under Section 276(B) of the Income Tax Act, 1961, for prosecution proceedings related to late deposit of tax deducted at source for financial years 2012-13, 2013-14, 2014-15, and 2016-17.
• Summons have been received for levy of damages under Section 14(B) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, aggregating to ₹0.96 crores for periods spanning 2013-2016 and 2014-2017. These matters are currently sub-judice.

What the Numbers Show

The significant reduction in net loss from ₹270.46 crore in Q4FY26 to ₹14.75 crore in Q1FY27 is driven largely by a drop in 'Other Expenses' from ₹475.57 crore to ₹4.74 crore. This suggests that the bulk of the previous quarter's losses were attributable to one-time or transitional costs related to the liquidation handover rather than recurring operational deficits. However, with zero revenue from operations, the company’s current cash burn is funded by other income and existing reserves. Investors must exercise caution as the financial statements are based on preliminary data from the Liquidator, and future revisions could materially alter the balance sheet once complete records are received and NCLT reliefs are granted.

C & C Constructions Limited reported a net loss of ₹40.43 million for the quarter ended September 30, 2025, following the resubmission of its financial results to correct filing discrepancies. The company, which was acquired by M/s R K Constructions in December 2024, recorded total income of ₹2.85 million for the period, while total expenses amounted to ₹43.28 million. The financial statements, prepared on a limited basis due to the ongoing liquidation process, were reviewed by A S G & Associates, Chartered Accountants.

The company addressed observations from the National Stock Exchange of India Limited regarding its initial XBRL submission. Management clarified that "Half-Yearly" was inadvertently selected instead of "Quarterly" in the reporting type drop-down, leading to the resubmission of the revised results. Additionally, the firm explained that comparative figures for the quarter ended September 30, 2024, were not disclosed as quarterly financial results were not prepared during the Corporate Insolvency Resolution Process and Liquidation Period.

Financial Performance

The unaudited financial results for the quarter ended September 30, 2025, reflect the company's status as a going concern under new management. Revenue from operations remained nil, while other income contributed ₹2.85 million. Finance costs accounted for a significant portion of the expenses at ₹30.57 million. The basic and diluted earnings per share for the quarter were reported as a loss of ₹1.59.

Auditor's Emphasis and Legal Proceedings

A S G & Associates highlighted several material uncertainties in their review report. The financial statements were prepared based on limited and preliminary information available to the new management, as key records and details are still awaited from the Liquidator. The auditors noted that the uncertainties inherent in the Insolvency and Bankruptcy Code liquidation process may materially affect certain estimates and disclosures.

The report also drew attention to specific legal notices received by the company. These include notices under Section 276(B) of the Income Tax Act, 1961, regarding late deposit of tax deducted at source for financial years 2012-13, 2013-14, 2014-15, and 2016-17. Furthermore, the company received summons for the levy of damages under Section 14 B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, aggregating to ₹0.96 Crores for the period from 2013-2016 and 2014-2017.

Balance Sheet and Cash Flow

The company's total assets as of September 30, 2025, stood at ₹3,738.92 million, a decrease from ₹3,852.75 million as of March 31, 2025. Equity share capital remained constant at ₹254.45 million, while other equity was reported at a negative balance of ₹21,014.36 million. Current liabilities, primarily comprising borrowings of ₹18,781.34 million, totaled ₹24,498.83 million.

Cash flow from operating activities for the half year ended September 30, 2025, was negative at ₹577.57 million. However, investing activities provided a net inflow of ₹157.70 million, largely driven by the sale proceeds of fixed assets. Financing activities resulted in a net inflow of ₹410.60 million, primarily from proceeds from borrowings. Consequently, cash and cash equivalents decreased from ₹30.30 million at the beginning of the year to ₹21.04 million at the end of the half year.