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.

GVK Power & Infrastructure Limited has disclosed, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Hon'ble National Company Law Tribunal (NCLT), Hyderabad Bench, has admitted an application for initiation of the Corporate Insolvency Resolution Process (CIRP) against its subsidiary, GVK Coal (Tokisud) Company Private Limited. The order was passed on 04.05.2026 in Case No. CP (IB) No. 212/7/HDB/2025, on a petition filed by IDBI Bank Limited as the financial creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The corporate debtor neither appeared before the Tribunal nor filed any reply, and was accordingly set ex-parte.

Background of the Default

GVK Coal (Tokisud) Company Private Limited was incorporated to develop a coal mine allotted by the Ministry of Coal & Mines, Government of India, to GVK Power (Goindwal Sahib) Limited (GPGSL) for its 540 MW thermal power project in Punjab, with coal production intended exclusively for captive consumption. A Facility Agreement dated 27.04.2010 was executed between the corporate debtor, IDBI Bank as Lenders' Agent, and other lenders for aggregate rupee loans up to Rs 225 crores to part-finance the project. IDBI Bank sanctioned Rs 50 crores and disbursed Rs 40 crores under this arrangement.

The project, originally scheduled for commissioning by 01.07.2012, was delayed, and a revised Commercial Operation Date of 30.06.2013 was proposed. The loan was subsequently restructured via a sanction letter dated 25.03.2013 and an Amendatory Agreement dated 30.03.2013. However, in August 2014, the Hon'ble Supreme Court cancelled coal block allocations, including that of the corporate debtor, extinguishing lender security except to the extent of compensation receivable.

Compensation Proceedings and Persistent Default

Following the Supreme Court's order, the corporate debtor became entitled to compensation administered by a Nominated Authority (NA). The key developments in the compensation and recovery process are summarised below:

The corporate debtor's account was classified as a Non-Performing Asset (NPA) on 31.05.2017. A recall notice dated 14.06.2018 was served on 22.03.2019. The corporate debtor acknowledged its liability in financial statements from FY 2018-2019 to 2022-2023, and submitted One-Time Settlement (OTS) proposals in 2021 and 2023, admitting liability. The OTS was conditionally accepted on 17.02.2023 but subsequently failed and was revoked on 05.02.2025.

NCLT Order and Key Directions

The NCLT, upon hearing submissions from the financial creditor's counsel and reviewing the record, found the debt and default to be established and unrebutted. The Tribunal noted that the application filed on 05.12.2025 was neither barred by Section 10A of the IBC nor by limitation. Accordingly, the petition was admitted with the following key directions:

• CIRP commencement: The Corporate Insolvency Resolution Process has been ordered to commence and is to be completed within the timelines stipulated under the IBC.
• Interim Resolution Professional: Mr. Dhaval Jitendrakumar Mistry (Registration No. IBBI/IPA-001/IP-P-01853/2019-2020/12849) has been appointed as the IRP, with his Authorization For Assignment (AFA) valid till 30-Jun-2027 as per the IBBI website.
• Moratorium: A moratorium under Section 14 of the IBC has been declared with immediate effect for the duration of the CIRP, prohibiting institution or continuation of suits, transfer or disposal of the corporate debtor's assets, enforcement of security interests, and recovery of property in possession of the corporate debtor.
• Management: The IRP has been directed to take immediate charge of the management of the corporate debtor and to issue a public announcement within three days of receipt of the order, calling for submission of claims.
• Cooperation: Directors, promoters, and persons associated with the management of the corporate debtor have been directed to extend full assistance and cooperation to the IRP.

Company Disclosure

GVK Power & Infrastructure Limited, which is itself under CIRP, made the regulatory disclosure on 13th May, 2026, through its Company Secretary & Compliance Officer, T Ravi Prakash. The NCLT order was passed by Sri Rajeev Bhardwaj, Member (Judicial), and Sri Sanjay Puri, Member (Technical), of the Hyderabad Bench – II. The admission of CIRP against GVK Coal (Tokisud) Company Private Limited marks a further development in the ongoing insolvency proceedings affecting entities within the GVK group.