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.

Yudhvir Singh Malik, IAS (Retd.), ceased to be the Chairman and Managing Director of Unitech Group effective the close of working hours on July 20, 2026. His departure follows the conclusion of a tenure extended by the Ministry of Corporate Affairs (MCA), leaving the real estate major without a head for the top post until further government directives.

The MCA had initially appointed Malik as Chairman and Managing Director for two years in January 2020, complying with a Supreme Court order. This tenure was subsequently extended for two-year periods in November 2021 and October 2023. The final extension, granted via a letter dated January 17, 2026, was for a period of six months, ending on July 20, 2026, or until a new Board was constituted.

Board and Regulatory Status

The Board of Directors of Unitech Limited noted the end of Malik's tenure during a meeting held on July 20, 2026. The meeting commenced at 11:30 a.m. and concluded at 02:50 p.m. The company confirmed that it has not received any further communication from the MCA regarding the appointment of a successor.

Unitech stated it would update the stock exchanges upon receiving further instructions from the ministry. The development was communicated by Anuradha Mishra, Company Secretary & Compliance Officer.

Timeline of Tenure Extensions