McNally Bharat Engineering Company Limited announced the resignation of its Chief Financial Officer, Rupayan Majumdar, effective from the close of business hours on May 30, 2026. The resignation was submitted due to personal reasons beyond the executive's control, as stated in the official filing.

The company disclosed this information to the National Stock Exchange of India Limited and BSE Limited on June 5, 2026. The communication was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with clause (7C) of Para A in Part A of Schedule III to the said Regulations.

In his resignation letter dated May 5, 2026, addressed to the Chief Executive Officer, Mr. Majumdar requested that his release be given effect taking into consideration all legal and statutory compliances. He expressed his gratitude to the senior management team and the Board of Directors for their support during his tenure.

McNally Bharat Engineering Company Limited had previously communicated the impending resignation to the stock exchanges via letters dated May 6, 2026, and May 28, 2026. The formal resignation letter has now been enclosed and uploaded to the company's official website.

Key Details of the Resignation

McNally Bharat Engineering Company Limited reported a consolidated net profit of ₹3,44,893.68 lakh for the financial year ended March 31, 2026, marking a significant turnaround from the net loss of ₹1,71,568.70 lakh recorded in the previous year. The company’s revenue from operations for the year stood at ₹7,351.06 lakh, while total income was ₹7,467.10 lakh. The financial performance was bolstered by exceptional income amounting to ₹3,89,143.73 lakh, primarily resulting from the implementation of the Resolution Plan approved by the National Company Law Tribunal (NCLT).

Financial Performance

The company’s standalone financial results for FY26 revealed a drastic improvement in profitability, largely attributed to accounting adjustments following the Corporate Insolvency Resolution Process (CIRP). The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, during a meeting held on May 28, 2026.

Key Financial Metrics (Standalone)

Resolution Plan Impact

The exceptional income recognized during the year stems from the implementation of the Resolution Plan approved by the Hon’ble NCLT, Kolkata, on December 19, 2023. Consequently, the company extinguished substantial financial and operational liabilities, with the difference between the carrying amount of liabilities extinguished and the consideration paid recognized as a gain. This included the extinguishment of financial creditors' liabilities amounting to ₹3,69,661.78 lakh and operational creditors' liabilities of ₹18,408.56 lakh. The resultant balances were credited to Capital Reserve and Retained Earnings, overriding the requirements of applicable Indian Accounting Standards (Ind AS) as per NCLT directions.

Management Changes

The Board noted the resignation of Mr. Rupayan Majumdar as Chief Financial Officer, effective May 30, 2026. Concurrently, the Board approved the appointment of Mr. Harish Avadhani as the new Chief Financial Officer and Key Managerial Personnel, effective June 1, 2026. Mr. Avadhani brings over 30 years of experience and previously served as President – Commercial & Finance at the company since April 16, 2026.

Auditor’s Report

V. Singhi & Associates, the statutory auditors, provided an unqualified opinion on the standalone and consolidated financial results. However, the auditors drew attention to the accounting treatment adopted pursuant to the Resolution Plan, which involved the reduction of share capital and extinguishment of liabilities. Additionally, the auditors noted that trade receivables, financial assets, and trade payables are subject to confirmation and reconciliation, with the management’s review process ongoing.