Infrastructure Leasing & Financial Services Limited has confirmed that no encumbrance has been created on the shares of il&fs engg & const company . The declaration, submitted to the National Stock Exchange of India Limited on April 07, 2026, was made pursuant to Regulation 31(4) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011. The disclosure confirms that the promoter, along with IL&FS Financial Services Limited as the Person Acting in Concert (PAC), holds investments in the company without any direct or indirect encumbrance on the shares.

The filing was addressed to the Listing Department of the exchange. The disclosure is a statutory requirement aimed at ensuring transparency regarding the holding status of shares by promoters and PACs. The declaration explicitly states that no encumbrance has been made by the company directly or indirectly.

The following table outlines the key details of the disclosure:

The submission was signed by Shekhar Prabhudesai, Company Secretary. The exchange has been requested to acknowledge receipt of the disclosure and take it on record.

IL&FS Engineering and Construction Company Limited returned to profitability in the financial year ended March 31, 2026, posting a net profit of ₹19 lakh compared to a net loss of ₹492 lakh in the previous year. Revenue from operations fell significantly to ₹18,792 lakh from ₹32,138 lakh in FY25. The company’s ability to continue as a going concern remains dependent on the finalisation and approval of the resolution process, which is not wholly within its control.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net profit of ₹971 lakh, a substantial increase from the net profit of ₹735 lakh in the corresponding quarter of the previous year. Total income for the quarter stood at ₹6,176 lakh, down from ₹12,905 lakh in Q4 FY25. On a consolidated basis, the net profit for FY26 was ₹133 lakh, reversing the net loss of ₹488 lakh recorded in FY25. Consolidated revenue from operations for the year mirrored the standalone figures at ₹18,792 lakh.

The following table outlines the key financial metrics for the standalone entity for the year ended March 31, 2026:

Audit Observations and Qualifications

M. Bhaskara Rao & Co., the statutory auditors, issued an unmodified opinion on the standalone financial results. However, the auditors issued a qualified opinion on the consolidated financial results. The qualification arises because the consolidated results do not include the financial information of the overseas subsidiary, Maytas Infra Saudi Arabia Company, as the entity has ceased operations for over three years and financial information is unavailable. The auditors stated they are unable to comment on the impact of this exclusion on the group's financial results.

Going Concern and Regulatory Matters

The auditors highlighted a material uncertainty relating to the company's status as a going concern. This is due to continued losses, the erosion of net worth, and a significant reduction in income from operations. The company’s net worth stood at a negative ₹3,31,766 lakh as of March 31, 2026. The auditors noted that the company’s ability to continue as a going concern is solely dependent on the resolution process initiated by the Reconstituted Board.

Additionally, the auditors drew attention to ongoing investigations by regulatory agencies, including the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED), against the parent entity IL&FS and its subsidiaries. The financial results do not include adjustments that may arise from these investigations. The company also did not recognize interest expense of ₹46,044 lakh for FY26, following an NCLAT order that specified October 15, 2018, as the cut-off date for the resolution process.