Sadbhav Infrastructure Projects Limited reported a standalone net profit of ₹175.94 million for the quarter ended June 30, 2026, marking a turnaround from a net loss of ₹171.00 million in the corresponding period of the previous year. The profitability swing was primarily driven by an exceptional gain of ₹280.00 million from the recovery of a loan receivable from subsidiary Sadbhav Hybrid Annuity Projects Limited (SHAPL), which had been written off in FY2024. On a consolidated basis, revenue from operations grew by 7.5% year-on-year to ₹2,002.62 million, supported by a significant reduction in finance costs. The Board of Directors approved these unaudited financial results at its meeting held on August 11, 2026.

Standalone Financial Performance

The company recorded no revenue from operations during the quarter ended June 30, 2026. Total income consisted entirely of other income at ₹70.22 million, up from ₹43.55 million in Q1FY26. Total standalone expenses declined to ₹174.28 million from ₹214.55 million in the year-ago quarter, largely due to a reduction in finance costs to ₹141.65 million from ₹191.40 million. The following table summarises key standalone financial metrics:

The exceptional gain of ₹280.00 million relates to the recovery of a loan receivable from SHAPL, which was realised before the date of approval of the financial results. Paid-up equity share capital stood at ₹3,522.25 million as of June 30, 2026.

Consolidated Financial Performance

On a consolidated basis, revenue from operations grew to ₹2,002.62 million in Q1FY27 from ₹1,862.81 million in Q1FY26. Total consolidated income was ₹2,110.67 million versus ₹2,135.52 million in the year-ago quarter. Total expenses declined sharply to ₹1,344.05 million from ₹1,779.41 million, with finance costs falling to ₹450.66 million from ₹886.60 million year-on-year. The table below presents key consolidated metrics:

The consolidated exceptional item of (₹108.55 million) in Q1FY27 pertains to a loss on harmonious substitution of Sadbhav Rudrapur Highway Limited (SRHL). As at June 30, 2026, the group's accumulated losses exceeded paid-up capital by ₹5,853.09 million. GST tax credit receivables of ₹1,194.88 million are included in other current assets across four subsidiaries, with auditors expressing qualified conclusions on the recoverability of these credits.

Corporate Governance and Auditor Changes

The Board appointed Mr. Jaldeep Prakash Patel and Mr. Ankit Kishorbhai Shah as Additional Directors in the capacity of Non-Executive Independent Directors with effect from August 11, 2026, subject to shareholder approval at the ensuing Annual General Meeting. Both directors are not liable to retire by rotation and will hold office until the conclusion of the General Meeting.

The Board accepted the resignation of statutory auditors M/s. SGDG & Associates LLP, effective August 12, 2026. The firm cited the prolonged absence of operational activities and the size of the company's operations relative to the scale and resources of the audit firm as the reason for resignation. There are no other material reasons for the resignation.

Board Decisions and Asset Transactions

The Board approved several significant corporate actions, including the sale, disposal, lease of assets, and pledge of shares in material subsidiaries Sadbhav Hybrid Annuity Projects Limited (SHAPL), Maharashtra Border Check Post Limited (MBCPNL), Sadbhav Nainital Highway Limited (SNHL), Sadbhav Rudrapur Highway Limited (SRHL), and Sadbhav Vidarbha Highway Limited (SVHL). These approvals are subject to shareholder and regulatory approvals pursuant to Regulation 24(5) and 24(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Outstanding unlisted non-convertible debentures aggregating to ₹650.60 million were fully repaid on July 21, 2026, by availing a term loan facility from Kotak Mahindra Bank Limited. Debenture holders have withdrawn the application filed with the National Company Law Tribunal, New Delhi.

Auditor Qualifications and Going Concern

Statutory auditors issued a qualified conclusion on both standalone and consolidated financial results. Key qualifications relate to the recoverability of investments, subordinate debts, and receivables aggregating to ₹8,044.51 million in subsidiaries Rohtak Panipat Tollway Private Limited (RPTPL) and Rohtak Hissar Tollway Private Limited (RHTPL). Auditors noted they were unable to corroborate management's contention regarding the realisability of these carrying values, as both subsidiaries have issued termination notices to NHAI and their net worth has fully eroded.

Auditors also highlighted a material uncertainty related to going concern for both the standalone entity and the consolidated group, noting that the company has incurred losses in prior periods and experienced a significant reduction in income from operations. Management stated that the going concern basis remains appropriate, citing improving liquidity through stake sales, harmonious substitutions of subsidiaries, expected asset monetisation, and continued cost optimisation measures.

Sadbhav Infrastructure Project Limited reported a standalone net profit of ₹1,755.24 million for the financial year ended March 31, 2026, reversing from a net loss of ₹1,307.43 million in the previous year. The company’s revenue from operations for the quarter ended March 31, 2026, was ₹2,851 million, while total income for the year stood at ₹11,686 million. The board of directors approved the audited financial results during a meeting held on May 27, 2026.

The statutory auditors, S G D G & Associates LLP, issued a modified opinion on the standalone financial results. The qualification relates to the recoverability of investments, including subordinate debt, loans, and trade receivables aggregating to ₹8,043.91 million in subsidiaries Rohtak Panipat Tollway Private Limited and Rohtak Hissar Tollway Private Limited. The auditors stated they were unable to corroborate management’s contention regarding the realization of these amounts and could not comment on the appropriateness of their carrying value.

Financial Performance

The company’s total expenses for the year ended March 31, 2026, were ₹10,030.08 million. Exceptional items for the year included a gain of ₹2,416.52 million on the waiver of a loan from Ahmedabad Ring Road Infrastructure Projects Limited and provisions amounting to ₹1,000 million for impairment in the carrying value of investments in Sadbhav Rudrapur Highway Limited. The basic and diluted earnings per share (EPS) for the year was ₹49.88.

Consolidated Results

On a consolidated basis, the company reported a net loss of ₹342.56 million for the year ended March 31, 2026, compared to a net loss of ₹750.53 million in the previous year. Total revenue from operations for the year was ₹7,745.58 million. The consolidated results also included exceptional items, primarily losses from the harmonious substitution of concessionaires in subsidiaries such as Sadbhav Rudrapur Highway Limited and Sadbhav Kim Expressway Private Limited.

The auditors also highlighted a material uncertainty related to the group’s ability to continue as a going concern. The group’s accumulated losses exceeded its paid-up capital by ₹6,184.88 million as of March 31, 2026. Additionally, the auditors qualified their opinion regarding the financial statements of several subsidiaries, including Sadbhav Bangalore Highway Private Limited and Sadbhav Udaipur Highway Limited, citing material uncertainties about their ability to continue as going concerns and the realizability of GST tax credits.

Management Appointments

The board appointed Mr. Kaivan Vora as the Chief Financial Officer (CFO) of the company effective May 27, 2026, on the recommendation of the Nomination and Remuneration Committee. Mr. Vora holds a Master of Business Administration (MBA) in Finance and brings over 18 years of experience in corporate finance and treasury management.