Supreme Infrastructure India Limited has significantly reduced its corporate guarantee exposure through a court-approved resolution plan for its erstwhile subsidiary, Kopargaon Ahmednagar Tollways (Phase I) Private Limited.

The company announced the reduction on September 09, 2026, marking a key milestone in its efforts to minimize contingent liabilities. The resolution plan settles various claims and business requirements for an aggregate amount of ₹36.51 crore.

Resolution Plan Details

Under the approved terms, the company’s earlier corporate guarantee exposure of approximately ₹180 crore has been reduced to ₹36.51 crore. This represents a reduction of approximately ₹143.49 crore, or nearly 80% of the initial exposure.

The settlement extinguishes the claims of concerned Financial Creditors upon payment of the last tranche and fulfillment of applicable covenants. Associated corporate guarantees, charges, liens, and encumbrances will be released thereafter.

What the Numbers Show

The reduction in contingent liability is substantial relative to the settlement cost. By paying ₹36.51 crore to resolve claims, the company eliminates ₹143.49 crore in potential future outflows. This structural change converts a large, uncertain liability into a fixed, manageable expense, thereby de-risking the balance sheet.

Additionally, receivables from clients against claims held by Kopargaon Ahmednagar Tollways post-payment to lenders will remain with Supreme Infrastructure India Limited. This retention of assets alongside the debt settlement suggests a net positive impact on the company’s working capital position once the final payments are executed.

The management stated that this step strengthens the company’s financial position by mitigating invocation risk associated with corporate guarantees. The company will undertake formal processes with Financial Creditors to release the guarantees upon fulfillment of all conditions.

Supreme Infrastructure India Limited reported a substantial narrowing in its quarterly losses for the first quarter of FY27, with standalone net loss falling to ₹59.14 crore from ₹399.89 crore in the corresponding period of the previous fiscal year. This marks a sharp improvement compared to the massive losses incurred during the same quarter last year, although the company remains in the red.

The Mumbai-based infrastructure firm saw its total income from operations more than double, rising 191% year-on-year to ₹24.37 crore from ₹8.36 crore in Q1FY26. On a sequential basis, revenue also expanded by 57%, up from ₹15.54 crore in the fourth quarter of FY26. The consolidated bottom line mirrored this trend, with net loss reducing to ₹59.17 crore from ₹399.92 crore a year ago.

Financial Performance Overview

The company’s earnings per share (EPS) reflected the reduced loss burden. Basic EPS stood at a loss of ₹6.07 per share for the quarter, compared to a loss of ₹155.61 per share in Q1FY26. Diluted EPS was recorded at a loss of ₹6.37 per share. For the full fiscal year ended March 31, 2026, the company had reported a standalone net profit of ₹5,796.60 crore, primarily driven by exceptional items, as operational losses persisted throughout most of the year.

Note: Figures in lakhs converted to crores for readability. Source data is in ₹ lakhs.

Balance Sheet and Restructuring Milestones

A significant development accompanying the quarterly results is the restoration of the company’s net worth to ₹178.09 crore. This positive equity position marks a critical milestone in the implementation of the Scheme of Compromise and Arrangement with lenders. With support from its promoter group, the company created a fixed deposit of ₹120 crore with State Bank of India, sufficient to meet balance settlement obligations under the scheme.

The successful implementation of the arrangement has also laid the foundation for resolving Build-Operate-Transfer (BOT) assets. As majority lenders to these BOT Special Purpose Vehicles are common with the company’s lenders, the resolution progress has strengthened stakeholder confidence and paved the way for constructive engagement towards unlocking value from these assets.

What the Numbers Show

A critical observation from the filing is the divergence between operational performance and reported profitability for the full previous fiscal year. While the company reported a standalone net profit of ₹5,796.60 crore for FY26, this figure includes significant exceptional items. Excluding these one-time gains, the underlying operational result for FY26 was a net loss of ₹669.04 crore. This highlights that the current quarter’s improvement, while positive, is part of an ongoing effort to stabilize core operations rather than a shift to consistent operational profitability.

The equity share capital remained unchanged at ₹97.50 crore during the quarter. Other equity excluding revaluation reserves stood at ₹139.73 crore as of March 31, 2026. The results were reviewed by the Audit Committee and approved by the Board of Directors on August 14, 2026. The statutory auditors have performed a limited review of the financial results, with no qualifications expressed in their report.