Srei Infrastructure Finance Limited has disputed its classification as a promoter of Bharat Road Network Limited, citing a change in management and control effective August 11, 2023. In a communication to the stock exchanges, Srei argued that the approval of the resolution plan by the National Company Law Tribunal (NCLT) for its Corporate Insolvency Resolution Process (CIRP) meant it could no longer be part of the promoter group. The company stated that the consent to be named a promoter was given by the erstwhile management and was no longer valid following the change in control.

The disclosure was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Srei emphasized that the communication was submitted as a matter of abundant caution and protest. The company clarified that it has not created any encumbrance on its shareholding since the date of allotment on November 12, 2016.

Srei Infrastructure Finance Limited holds a significant stake in Bharat Road Network . The company owns 16,630,000 equity shares, which aggregate to 19.81% of the total issued capital. Despite this substantial shareholding, Srei maintains that its status should be reclassified to 'Public Category' shareholder in light of the NCLT order.

The following table details the shareholding disclosed by Srei Infrastructure Finance Limited:

The company referred to an earlier letter dated May 18, 2026, reiterating its position regarding the resolution plan submitted by National Asset Reconstruction Company Limited (NARCL). Srei asserted that all rights regarding this classification dispute are reserved.

Bharat Road Network reported a standalone net profit of ₹343.59 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹30,815.06 lakh in the previous year. The consolidated financial results for the same period showed a net loss of ₹5,945.92 lakh, a significant reduction from the net loss of ₹13,612.80 lakh in FY25. Total income for the standalone entity rose to ₹1,199.30 lakh, while consolidated total income stood at ₹18,518.67 lakh. The company published these audited standalone and consolidated financial results in newspapers on June 1, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Audit Qualifications and Compliance

Statutory auditors M/s. S.S. Kothari Mehta & Co. issued an audit report with a modified opinion, highlighting that the company did not recognize interest on financial assistance availed from July 01, 2024 onwards. This non-compliance with Ind AS 109 resulted in an understatement of loss before tax for the quarter ended March 31, 2026, by ₹884.96 lakhs and an overstatement of profit before tax for the year by ₹4,107.69 lakhs. Additionally, current liabilities as at March 31, 2026, were understated by ₹7,027.26 lakhs. The auditors also noted a material uncertainty related to the company's ability to continue as a going concern due to defaults in repayment and significant losses.

Consolidated Performance

The consolidated results included the financial performance of subsidiaries such as Orissa Steel Expressway Private Limited and Guruvayoor Infrastructure Private Limited. The auditors identified further qualifications in the consolidated results, including the non-recognition of interest by subsidiary Guruvayoor Infrastructure Private Limited and the recognition of a compensation receipt of ₹17,289.27 lakhs in Other Equity rather than the Statement of Profit and Loss by Orissa Steel Expressway Private Limited. Adjusted consolidated figures reflected a profit before tax of ₹5,803.74 lakh against the reported loss before tax of ₹5,912.92 lakh.

Board Decisions and Governance

The Board of Directors, meeting on May 30, 2026, approved the audited standalone and consolidated financial results. The board also considered a request from promoter Srei Infrastructure Finance Limited to reclassify its status from "Promoter" to "Public" category. However, the board observed that requisite documents were unavailable and kept the request in abeyance until further examination. The meeting commenced at 6:00 P.M. and concluded at 8:15 P.M.

Financial Position

As of March 31, 2026, the company's standalone total assets were valued at ₹73,291.30 lakh, with total equity at ₹41,593.04 lakh. On a consolidated basis, total assets stood at ₹1,43,550.71 lakh, while total equity was recorded at ₹53,439.43 lakh. The company reported that it had received ₹39,167.96 lakhs from NHAI under a settlement agreement for Orissa Steel Expressway Private Limited, which was recognized as capital receipts.