IL&FS Engineering and Construction Company Limited has disclosed substantial defaults on its financial obligations to banks and financial institutions as of March 31, 2026. The company filed its mandatory disclosure with stock exchanges on April 4, 2026, revealing the extent of its financial distress.

Financial Default Details

The company's disclosure reveals a complete default scenario on its bank borrowings. The following table summarizes the key financial parameters:

Regulatory Compliance

The disclosure was made in accordance with SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, which mandates listed companies to report defaults on loan payments. The company submitted the required information in the specified format to both BSE Limited and National Stock Exchange of India.

Key Observations

The financial data reveals that the entire outstanding amount of ₹2,627.51 crore from banks and financial institutions is in default. Notably, the company reported no defaults on unlisted debt securities including Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS).

Important Disclosure Note

The company has provided a significant clarification regarding interest calculations. No interest is being accrued or provided post the "Cutoff date" as defined in the Hon'ble National Company Law Appellate Tribunal order dated March 12, 2020, except for interest on Funded Interest Term Loan (FITL). This legal framework appears to be governing the company's current financial reporting approach.

Corporate Communication

The disclosure was signed by Rajib Kumar Routray, Company Secretary & Compliance Officer, and submitted digitally on April 4, 2026. The communication was addressed to both major Indian stock exchanges where the company's shares are listed under scrip code 532907 on BSE and symbol IL&FSENGG on NSE.

IL&FS Engineering and Construction Company Limited has addressed regulatory queries from stock exchanges regarding the submission of its Q3FY26 financial results, clarifying that technical issues at the exchange platform caused confusion over timely compliance with SEBI regulations.

Filing Timeline and Compliance

The company's Board of Directors approved the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on February 5, 2026. The board meeting commenced at 12:15 PM and concluded at 3:30 PM, with the company submitting the required documents to BSE Listing Centre within stipulated timelines as prescribed under Regulation 30 and Regulation 33 of SEBI (LODR) Regulations, 2015.

Exchange Platform Technical Issues

Despite successful submission evidenced by two acknowledgment receipts generated by the BSE system on February 5, 2026, the exchange raised queries about non-compliance. The company's interaction with BSE's Listing Compliance Monitoring Team revealed that the issue stemmed from a technical glitch at the exchange platform, preventing submitted documents from reflecting properly on the system.

The company has made multiple attempts to establish contact with exchange officials to clarify the matter and has submitted clarification letters dated February 25, 2026, and February 27, 2026, in response to exchange communications dated February 20, 2026, and February 27, 2026, respectively.

Financial Performance Highlights

The Q3FY26 results show mixed performance for the construction and infrastructure development company:

Ongoing Resolution Process

The company continues to operate under the resolution framework established by NCLAT, with October 15, 2018, serving as the cut-off date for debt crystallization. As part of this process, the company has not recognized interest expense of ₹34,546 Lakhs for the nine months ended December 31, 2025, with aggregate unrecognized interest expense reaching approximately ₹296,535 Lakhs as of the reporting date.

Document Resubmission

To ensure complete compliance and address platform-related issues, the company has resubmitted all required documents, including:

• Clarification letters dated February 25, 2026, and February 27, 2026
• BSE acknowledgment receipts from February 5, 2026
• Standalone and consolidated financial results for Q3FY26
• Independent auditor review reports

The financial results have been prepared in accordance with Indian Accounting Standards and reviewed by M. Bhaskara Rao & Co., Chartered Accountants, who have issued qualified conclusions due to ongoing resolution proceedings and material uncertainties regarding the company's going concern status.