GVK Power & Infrastructure posted a standalone net profit of ₹9 lakh for the quarter ended June 30, 2026 (Q1FY27), improving from a net loss of ₹47 lakh in the preceding quarter. The company’s consolidated segment results, however, reflected a net loss of ₹55 lakh for the same period, compared to a loss of ₹301 lakh in Q4FY26.

Statutory auditors T R Chadha & Co LLP issued a disclaimer of conclusion on both the standalone and consolidated financial statements. The audit firm cited significant doubt regarding the group’s ability to continue as a going concern, driven by accumulated losses, liabilities exceeding assets, and ongoing proceedings under the Insolvency and Bankruptcy Code (IBC).

Financial Performance

The standalone entity recorded total income of ₹77 lakh, primarily derived from other income, as revenue from operations remained at nil. Total expenses stood at ₹68 lakh, comprising employee benefits of ₹3 lakh and other expenses of ₹64 lakh. This resulted in a profit before tax of ₹9 lakh.

In the consolidated structure, total income was ₹169 lakh, while total expenses amounted to ₹224 lakh. The power segment contributed a marginal loss of ₹2 lakh, while the 'Others' segment—which includes investment, manpower, and SEZ companies—reported a loss of ₹224 lakh.

Auditor Disclaimer and CIRP Status

The auditors highlighted multiple bases for their disclaimer, focusing on the company’s admission into the Corporate Insolvency Resolution Process (CIRP). The National Company Law Tribunal (NCLT) admitted GVK Power into CIRP via an order dated July 12, 2024. A Resolution Professional (RP) has been appointed, and the Committee of Creditors (CoC) has rejected two prior resolution plans as non-compliant.

Key uncertainties cited by the auditors include:

• Guarantees for GVK Coal: The group provided corporate guarantees for loans taken by its associate, GVK Coal Developers (Singapore) Pte Ltd, aggregating to USD 1,132.45 million. An English court crystallized claims against guarantors at USD 2.19 billion. The RP has admitted financial creditor claims up to ₹15,94,489 lakh for CIRP purposes.
• Deconsolidation of GVK Energy: Control over wholly-owned subsidiary GVK Energy Limited (GVKEL) was lost when it entered CIRP in May 2025. This led to a deconsolidation loss of ₹1,04,158 lakh recognized in the previous year.
• Litigation Risks: Ongoing investigations by the CBI and Enforcement Directorate (ED) regarding alleged fund misuse and money laundering remain pending, with potential implications that cannot be quantified.

What the Numbers Show

The divergence between standalone profitability and consolidated losses highlights the structural challenges within the group. While the parent company generated a small operational surplus through other income and minimal expenses, the consolidated 'Others' segment dragged down overall performance with a ₹224 lakh loss. This pattern underscores that the standalone profit is not reflective of the broader group’s operational health, which remains heavily burdened by legacy liabilities and insolvency-related costs.

GVK Power & Infrastructure reported a consolidated net loss of ₹138,230 lakh for the financial year ended March 31, 2026, compared to a loss of ₹65,227 lakh in the previous year. Total revenue from operations for the period stood at ₹8,260 lakh, a significant decline from ₹83,030 lakh in FY25. The company's Board of Directors approved the audited financial results for both standalone and consolidated entities at a meeting held on May 29, 2026.

The statutory auditors, T R Chadha & Co LLP, issued a disclaimer of opinion on the financial results. The auditors cited significant uncertainties, including the company's admission into the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) in July 2024. The report highlighted that the liabilities of the company, considering amounts not provided for, are much higher than its assets. Additionally, various subsidiaries and associates are facing insolvency proceedings, and several loan accounts have been classified as non-performing assets.

Financial Performance

The standalone financial results for FY26 show a net loss of ₹103,893 lakh, widening from the previous year's loss of ₹20,013 lakh. Total income for the standalone entity was ₹309 lakh, down from ₹3,480 lakh in the previous year. The company reported an exceptional loss of ₹47 lakh for the year. The basic and diluted earnings per share (EPS) for the standalone entity were reported at ₹(6.58) for FY26.

Key Disclosures and Risks

The auditors drew attention to the guarantees and commitments provided by the company for GVK Coal Developers (Singapore) Pte Limited, an associate company. The company has provided guarantees for loans aggregating to USD 1,132.45 Million (₹10,71,913 lakhs). The associate's current liabilities exceeded its current assets by USD 3,193 million (₹30,22,600 lakhs) as of March 31, 2026. The England court has crystalized the amount payable by the guarantors at USD 2.19 billion, though the company's management believes this order cannot be enforced in India.

The Resolution Professional (RP) has received claims totaling ₹21,79,248 lakhs from financial creditors, of which ₹15,94,489 lakhs have been admitted. The Committee of Creditors (CoC) has rejected two resolution plans and resolved to re-initiate the CIRP process based on an asset-wise sale approach. Consequently, no provision has been made against the admitted claims in the financial results.

Subsidiary and Litigation Updates

The company lost control over GVK Energy Limited (GVKEL) and its subsidiaries following their admission into CIRP in May 2025. This resulted in a deconsolidation of their assets and liabilities, recognizing an exceptional loss of ₹1,04,158 lakh in the consolidated financial results. Additionally, GVK Transportation Private Limited (GVKTPL) was admitted into CIRP in August 2024, leading to its deconsolidation and the recording of an exceptional gain of ₹59,956 lakh in the previous year.

The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are conducting investigations into alleged irregularities at erstwhile subsidiaries, including Mumbai International Airport Limited. The company stated that the implications of these proceedings cannot be ascertained at this stage. Furthermore, the recoverability of investments in GVK Perambalur SEZ Private Limited, valued at ₹11,655 lakh, remains uncertain due to ongoing litigation involving Canara Bank and the ED.