Unitech Group Limited filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ending March 31, 2026. The filing details the progress on project completions under the Supreme Court-supervised resolution framework.

Project Completion Progress

The company has made significant strides in awarding construction contracts to resume stalled projects. Following the approval of the Hon'ble Supreme Court on January 22, 2026, the Board of Directors approved the award of 10 tenders from Lot-5 to successful bidders in May 2026.

Additionally, the Board approved the floatation of 26 new tenders as part of Lot-6 during its meeting on May 28, 2026. This batch includes 15 re-tendered works and 11 fresh tenders. Approximately 17 remaining tenders are slated for floatation under Lot-7.

Financial and Operational Metrics

Unitech reported a total turnover of ₹3,80,28,44,681 for FY26. The net worth of the entity stood at a negative ₹56,96,42,65,727.

The business mix remains heavily skewed towards real estate activities, which contributed 85.21% of the turnover, while real estate activities on a fee or contract basis accounted for 14.79%.

Stakeholder Engagement

The company addressed grievances from various stakeholders during the year. It received 1,602 complaints from investors (other than shareholders), leaving 2,515 pending resolution at year-end. Customer complaints totaled 705, with none pending resolution by March 31, 2026.

What the Numbers Show

The divergence between the volume of investor complaints filed (1,602) and the higher number of pending resolutions (2,515) indicates a backlog in addressing historical claims, particularly from fixed deposit holders. In contrast, the zero pending customer complaints suggests effective closure of recent homebuyer queries, likely due to the structured possession and refund processes mandated by the Supreme Court.

Governance and Compliance

The Board of Directors currently comprises 5 members, with no woman directors as of March 31, 2026, following the resignation of Ms. Uma Shankar. The company incurred penalties totaling ₹1,00,000 on Unitech Limited and its erstwhile directors for violations of the Companies Act, 2013. Appeals against these penalties have been preferred before the Regional Director.

Unitech Group reported a widened net loss for the first quarter of fiscal year 2027, with statutory auditors issuing a disclaimer of opinion on its financial statements due to pervasive legacy issues and material uncertainty regarding its going concern status.

The company’s standalone operations recorded a net loss of ₹3,881.9 crore for the quarter ended June 30, 2026, compared to a loss of ₹3,050.6 crore in the preceding quarter. On a consolidated basis, the net loss attributable to owners of the holding company was ₹5,705.7 crore, up from ₹4,107.9 crore in the previous quarter.

Financial Performance

Revenue from operations on a standalone basis rose to ₹658.0 crore in Q1FY27 from ₹524.7 crore in the same period last year. However, this growth was overshadowed by finance costs, which surged to ₹4,113.9 crore from ₹3,203.4 crore in the prior quarter. Other income increased marginally to ₹113.2 crore from ₹108.3 crore.

On a consolidated basis, revenue from operations was ₹1,060.1 crore, up from ₹1,050.0 crore year-on-year but down from ₹1,302.5 crore in the previous quarter. Total consolidated expenses stood at ₹8,232.7 crore, driven largely by finance costs of ₹7,224.0 crore.

Audit Disclaimer and Legacy Issues

GSA & Associates LLP, the statutory auditors, issued a disclaimer of conclusion on both the standalone and consolidated unaudited financial results. The auditors stated they were unable to obtain sufficient appropriate evidence due to substantive matters inherited from the erstwhile management.

Key issues cited by the auditors include:

• Unreconciled Balances: Significant discrepancies exist between book records and balances deposited with the Supreme Court registry, bank statements, and trade receivables/payables. The management is currently in the process of reconciliation.
• Impairment Assessments: No impairment assessment has been conducted for investments in subsidiaries, joint ventures, associates, and unrelated entities, despite strong indicators requiring such analysis under Ind AS 36.
• Going Concern Uncertainty: The company has eroded its net worth and faces challenges in meeting operational obligations, including servicing bank loans and public deposits. The appropriateness of the going concern assumption depends critically on the final decision of the Hon’ble Supreme Court regarding the Resolution Framework.
• Non-Compliance with SEBI Norms: For consolidated results, 37.93% of revenue, 34.89% of assets, and 44.77% of losses relate to subsidiaries that were not reviewed by auditors, violating Regulation 33(3)(h) of the SEBI Listing Regulations which mandates at least 80% coverage.

Resolution Framework Progress

The new management, appointed by the Union Government following a Supreme Court order in January 2020, continues to seek concessions and reliefs through a Resolution Framework filed with the court. The framework aims to facilitate the completion of stalled projects and meet liabilities.

Recent developments include:

• The Supreme Court appointed PwC to evaluate proposed solutions, including independent valuation and monetization of project and non-project lands, to protect stakeholder interests.
• Dialogue with secured creditors regarding One Time Settlement (OTS) proposals has been ongoing, with recommendations placed before the court in April 2026.
• Issues with Noida and Greater Noida Authorities are being addressed, with revised layout plans for key sectors approved by NOIDA in September 2025.

The next hearing in the Supreme Court is scheduled for September 30, 2026. Until then, the financial statements have been prepared on a going concern basis, subject to the outcomes of these legal and resolution processes.