Gammon India Limited reported a consolidated net loss of ₹372.75 crore for the quarter ended June 30, 2026, marking a significant deterioration from the ₹313.92 crore loss recorded in the preceding quarter. The construction and engineering firm’s standalone revenue from operations remained minimal at ₹1.87 crore, while finance costs surged to ₹291.22 crore, driving the standalone net loss to ₹288.77 crore. With equity trading suspended and severe liquidity constraints persisting, the company is actively engaged in negotiations with lenders and asset reconstruction companies (ARCs) to finalize a resolution plan that includes waivers on penal interest and haircuts on principal outstanding amounts.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 10, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by N V C & Associates LLP, the statutory auditors. The auditors issued a qualified conclusion, citing uncertainties regarding the realization of contract claims and the accounting treatment of disputed penal interest levied by lenders.

Financial Performance Overview

The company’s financial position remains under severe stress, with current liabilities exceeding current assets by ₹14,495.29 crore on a consolidated basis as of June 30, 2026. Finance costs constituted the largest expense head, reflecting the high leverage and non-performing asset status of its facilities since June 2017.

Standalone other income was ₹5.73 crore, compared to consolidated other income of ₹0.68 crore. The consolidated statement also reflected a share of loss from associates and joint ventures, though specific figures were not separately broken out in the primary summary table beyond the aggregate impact.

Auditor Qualifications and Contingent Liabilities

N V C & Associates LLP qualified their audit report on two primary grounds. First, they expressed inability to comment on the realizability of ₹10.00 crore in contract claims retained as good and receivable, due to prolonged delays in settlement. Second, the auditors highlighted a cumulative contingent liability of ₹923.28 crore relating to penal interest, incremental interest, and other charges levied by lenders and ARCs. Of this amount, ₹403.50 crore was levied by lenders and ₹519.78 crore by CFM Assets Reconstruction Company Private Limited. Management has disputed these charges and is negotiating their reversal as part of the broader debt settlement discussions.

What the Numbers Show

The divergence between minimal operational revenue and massive finance costs underscores the structural nature of Gammon India’s distress. With more than 50% of its debt assigned to two ARCs, the company’s viability hinges entirely on the approval of a resolution plan that offers substantial debt relief. The recognition of ₹532.91 crore in trade receivables based on arbitration awards provides a potential offset, but recovery remains subject to ongoing legal appeals. Until the resolution plan is finalized and implemented, the material uncertainty regarding the company’s going concern status persists, casting significant doubt on its ability to meet financial obligations without external intervention.

Gammon India Limited has filed its Integrated Annual Report for FY 2025-26 and issued notice of its 104th Annual General Meeting (AGM), scheduled for 29th August, 2026, at 02:30 p.m. via Video Conferencing. The company, one of India's oldest civil engineering and infrastructure contractors with a history spanning over 100 years, continues to navigate a prolonged financial restructuring process amid persistent liquidity challenges.

Financial Performance: FY 2025-26

The financial year under review covers the 12-month period from 1st April, 2025 to 31st March, 2026. The following table presents the key financial metrics on both a standalone and consolidated basis.

On a standalone basis, turnover rose significantly to Rs. 85.18 crores from Rs. 21.23 crores in the previous financial year ended 31st March, 2025. However, the net loss after tax widened to Rs. 1189.01 crores from Rs. 1078.14 crores. Finance costs, which include interest costs, stood at Rs. 1123.06 crores on a standalone basis. The loss was primarily attributed to provisions made for the company's funded and non-funded exposure of loans and investments.

On a consolidated basis, the Gammon Group's turnover grew to Rs. 94.48 crores from Rs. 67.89 crores in the previous financial year. The consolidated net loss after tax moderated to Rs. 1170.34 crores from Rs. 1192.34 crores in the prior year.

NPA Status and Resolution Plan

The company's credit facilities with secured lenders have been marked as Non-Performing Assets (NPA) since June 2017. Lenders have recalled all facilities, initiated recovery suits in Debt Recovery Tribunals, and filed winding-up petitions with the National Company Law Tribunal (NCLT), Mumbai bench. The company's current liabilities exceed current assets by Rs. 12,701.41 crore as at March 31, 2026 on a standalone basis.

More than 50% of the debt has been assigned to Asset Reconstruction Companies (ARCs) by the lenders. The company has submitted a One Time Settlement (OTS) proposal to lenders, which remains under consideration. The standalone residual CDR principal debt stood at Rs. 5447.09 crores as on 31st March, 2026, including Rs. 1393.19 crores pertaining to recalled facilities of SPV companies.

Key auditor qualifications include:

• Penal interest and charges of Rs. 107.90 crores levied by lenders for the current year ended March 31, 2026, with cumulative penal interest amounting to Rs. 391.76 crores up to March 31, 2026, which the management is disputing.
• An additional Rs. 519.78 crores in penal interest and charges levied by CFM Assets Reconstruction Company Private Limited (ARC), with the aggregate contingent penal interest amounting to Rs. 911.54 crores.

Delisting and Relisting Status

BSE compulsorily delisted the company's shares with effect from 8th May, 2024, and NSE with effect from 10th May, 2024, due to non-compliance. The company filed appeals before the Securities Appellate Tribunal (SAT). The Honourable SAT directed BSE (vide order dated 8th May, 2025) and NSE (vide order dated 19th February, 2026) to relist the company after regularisation of pending compliances. The company has completed all BSE compliances and is in the process of completing NSE compliances. Both exchanges have changed the company's status from delisted to suspended, pending completion of procedural requirements.

Board Changes and AGM Agenda

Several changes took place in the board composition during and after the financial year under review:

The 104th AGM agenda includes adoption of audited standalone and consolidated financial statements for FY 2025-26, appointment of Mr. Ajay Bhatnagar as Independent Director for a term of five years from 30th May, 2026 to 29th May, 2031, appointment of Mr. Radhakrishnan Nair Bhaskaran Pillai as Independent Director for a term of five years from 3rd August, 2026 to 2nd August, 2031, and ratification of remuneration of Rs. 70,000/- payable to Cost Auditor CMA Pradeep Damania for FY 2026-27.

Overseas Operations and Subsidiaries

The company held 19 subsidiaries including step-down subsidiaries and 5 joint venture companies as on 31st March, 2026, with Metropolitan Infrahousing Private Limited identified as a material subsidiary. The Italy-based Sofinter Group, in which the company holds a strategic stake through its overseas SPVs, reported consolidated revenues of Euro 252 Million for 2025, resulting in a consolidated loss of Euro 7.5 Million. The capital restructuring exercise of Sofinter under Article 2446 of the Italian Civil Code was concluded on 15th July, 2026. In the event Gammon opts out of the required capital contribution of approximately Euro 14 million, Nova Energy will pay the same and Gammon's shareholding in Sofinter will drop from 10% to 8.33%, based on a third-party valuation of approximately Euro 66 million.