IL&FS Engineering and Construction Company Limited has announced that its 37th Annual General Meeting (AGM) will be held on July 31, 2026, at 11:30 AM IST through video conferencing. The meeting will transact ordinary and special business, including the adoption of audited standalone and consolidated financial statements for the financial year ended March 31, 2026. Shareholders will also consider the re-appointment of Mr. Danny Samuel, a director retiring by rotation, and ratify the remuneration for the cost auditor.

The Board of Directors has recommended the ratification of remuneration payable to M/s. Narasimha Murthy & Co., Cost Accountants, for conducting the cost audit of the company. The remuneration is fixed at Rs.3,82,000 plus applicable taxes for each of the financial years 2025-2026 and 2026-2027. This resolution is pursuant to the provisions of Section 148(3) of the Companies Act, 2013 and related rules.

Key Meeting Details

Agenda for the Meeting

The ordinary business includes the adoption of the audited financial statements for the year ended March 31, 2026, along with the reports of the Board of Directors and Auditors. Additionally, the appointment of Mr. Danny Samuel (DIN: 02348138) as director, who retires by rotation and is eligible for reappointment, will be proposed.

The special business concerns the ratification of the cost auditor's remuneration. The company has appointed M/s. Narasimha Murthy & Co. (Regn. No. 00042) to audit the cost records for products related to "Roads & Other Infrastructure Projects." The Audit Committee recommended this appointment, and the Board has approved the fees.

E-voting and Participation

The company has provided remote e-voting facilities from July 28, 2026, to July 30, 2026. Members entitled to attend and vote may cast their votes electronically. The facility for appointing proxies is not available since the meeting is held via video conferencing. M/s S Panigrahi & Associates has been appointed as the scrutinizer to ensure the voting process is conducted fairly.

Shareholders can join the virtual meeting 15 minutes before the scheduled start time. The facility will be available to 1,000 members on a first-come, first-served basis, excluding large shareholders, promoters, and institutional investors who may attend without restriction. KFin Technologies Private Limited has been appointed as the Registrar and Share Transfer Agent for the meeting.

IL&FS Engineering and Construction Company Limited has filed its Integrated Annual Report for the financial year ended March 31, 2026 with BSE Limited and the National Stock Exchange of India Limited, in compliance with Regulation 34(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was submitted on June 25, 2026, ahead of the company's 37th Annual General Meeting (AGM) scheduled for July 31, 2026 at 11:30 AM (IST) through Video Conference/Other Audio-Visual Means.

Financial Performance: Standalone and Consolidated

The company reported a turnaround to profitability on a standalone basis in FY 2025-26, even as overall revenues declined significantly. The following table summarises the key financial results:

On a standalone basis, the company achieved a turnover of Rs. 257.77 Crore in FY 2025-26 compared to Rs. 372.33 Crore in the previous year. The net profit for the year stood at Rs. 0.19 Crore, against a net loss of Rs. 4.92 Crore in the previous year. The company has accumulated losses of Rs. 3,600.18 Crore as at March 31, 2026, and its net worth remains fully eroded at Rs. (3,186.54) Crores.

Operational Highlights and Order Book

The company executed orders worth Rs. 187.92 Crore (approx.) during FY 2025-26, compared to Rs. 321.38 Crore in the previous year. The closing order book as at March 31, 2026 stood at Rs. 12.89 Crore, a sharp decline from Rs. 635 Crore in the prior year. The sector-wise order book position is presented below:

The company continues to execute various EPC and item-rate projects with government and private clients in sectors including Railways & Metros, Water & Irrigation, and Roads. Most projects are nearing completion. The company's total debt stood at Rs. 2,667.42 Crores as at March 31, 2026, compared to Rs. 2,667.80 Crores in the prior year.

Key Financial Ratios

The following key financial ratios were reported for FY 2025-26 and FY 2024-25:

The Interest Coverage Ratio, Debt Equity Ratio, Return on Capital Employed, and Return on Equity have not been disclosed as the company's net worth is negative.

Resolution Process and Going Concern

The company continues to operate under the resolution framework approved by the Hon'ble National Company Law Appellate Tribunal (NCLAT). The company has been classified as a "Red Entity" under the IL&FS resolution framework, indicating its current inability to service debt and operational liabilities. A binding bid received from an overseas fund for acquisition of the promoters' equity stake has been approved by the Committee of Creditors (CoC) and is currently under consideration by Hon'ble Justice D.K. Jain (Retd.), following which approval of the Hon'ble NCLT, Mumbai will be sought.

The statutory auditors have highlighted a material uncertainty related to going concern, noting continued losses, erosion of net worth, and significant reduction in income from operations. The company has not recognised interest expense of Rs. 460.44 Crores (excluding penal/other interest and charges) for the year ended March 31, 2026, pursuant to the NCLAT order specifying October 15, 2018 as the cut-off date. The aggregate amount of interest expense not recognised as at March 31, 2026 stands at approximately Rs. 3,080.33 Crores.

AGM and Corporate Governance

The 37th AGM will be held on July 31, 2026 at 11:30 AM (IST) through VC/OAVM. The cut-off date for e-voting entitlement is July 23, 2026, and remote e-voting will be open from July 28, 2026 (9:00 AM) to July 30, 2026 (5:00 PM). The Board of Directors comprises six non-executive directors, including three independent directors. During FY 2025-26, Mr. Subrata Kumar Atindra Mitra and Dr. Jagadip Narayan Singh were re-appointed as Independent Directors for a second tenure of five years effective January 15, 2026. The company had 194 permanent employees on its rolls as on March 31, 2026. No dividend has been recommended for FY 2025-26, and no amount has been transferred to reserves.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE369I01014/06149c8272d143ae.pdf