Sadbhav Engineering Limited has returned to profitability for the financial year ended March 31, 2026, reporting a consolidated net profit of ₹9,468.95 lakh. This marks a significant turnaround from the net loss of ₹16,569.76 lakh recorded in the previous financial year ended March 31, 2025. The company’s total income from operations for the year stood at ₹97,272.85 lakh, compared to ₹103,644.53 lakh in the prior year.

For the quarter ended March 31, 2026, the company reported a consolidated net profit of ₹12,229.78 lakh, a reversal from the net loss of ₹16,533.35 lakh in the corresponding quarter of the previous year. Total income from operations for the quarter was ₹27,094.15 lakh, down from ₹28,977.51 lakh in the same period last year. On a standalone basis, the net profit for the quarter was ₹2,944.09 lakh.

Financial Performance

The company’s earnings per share (EPS) on a consolidated basis for the year ended March 31, 2026, was ₹1.53, compared to a loss of ₹11.04 per share in the previous year. For the quarter, the consolidated EPS stood at ₹4.73. The paid-up equity share capital remained constant at ₹1,715.71 lakh with a face value of Re. 1 each.

Key Appointments and Governance

The Board of Directors, at its meeting held on May 30, 2026, appointed Mr. Hitesh Chelani as the Chief Financial Officer (CFO) and Mrs. Radhika Bhavin Tanna as the Company Secretary and Compliance Officer, effective May 30, 2026. These appointments were made pursuant to Section 203 of the Companies Act, 2013 and relevant SEBI regulations. The audited financial results were reviewed by the Audit Committee and approved by the Board.

Audit Qualifications and Restructuring

The statutory auditors, Manubhai & Shah LLP, issued a qualified opinion on the standalone and consolidated financial results. Key qualifications include the recoverability of contract assets amounting to ₹35,019.32 lakh, investments and loans to subsidiary Sadbhav Infrastructure Project Limited (SIPL) aggregating ₹87,802.93 lakh, and outstanding dues from step-down subsidiary Rohtak Panipat Tollway Private Limited (RPTPL) of ₹20,178.30 lakh. Additionally, the auditors noted the non-appointment of a CFO since April 8, 2024, prior to the recent appointment.

During the quarter, the consortium lenders implemented the Restructuring Plan approved under the RBI Directions, 2019. Consequently, the company executed a Master Restructuring Agreement and issued secured Non-Convertible Debentures (NCDs) aggregating ₹71,325 lakh. The plan also involves the waiver of additional interest above 9%, resulting in an exceptional income of ₹15,638.89 lakh.

Key Financial Metrics

Sadbav Engineering Limited disclosed a non-compliance with board composition requirements under Regulation 17 and the payment of a fine, according to an intimation dated May 30, 2026. The company confirmed that the comments from its board addressed the failure to meet specific regulatory standards regarding its directorial structure.

Regulatory Non-Compliance

The filing specifically cited violations related to the composition of the board. While the detailed nature of the composition gap was not elaborated upon in the document, the company acknowledged the lapse in adhering to the mandated requirements set forth by the relevant regulations.

Financial Penalty

As a consequence of the non-compliance, Sadbhav Engineering Limited paid a fine. The document confirms the settlement of this financial penalty, though the specific amount was not disclosed in the available information. The payment serves as a resolution to the regulatory action taken against the company for the structural oversight.