Madhucon Projects Limited , an infrastructure development company, has disclosed another significant loan default in its latest quarterly filing. The company reported details of its continued financial difficulties in a disclosure to stock exchanges on January 5, 2026, covering the quarter ended December 31, 2025.

Q3FY26 Default Details

Madhucon Projects Limited disclosed a default on loan payments for the quarter ended December 31, 2025. The company's default parameters show:

The default involves secured loans from Punjab National Bank (formerly OBC/Punjab National Bank), representing a complete failure to repay the principal amount due on fund-based loans.

Current Financial Position

The company's financial standing reveals the extent of its debt burden:

Notably, the company's total financial indebtedness has decreased from Rs 185.25 crore in the previous quarter to Rs 160.56 crore, indicating some debt reduction despite the ongoing default.

Regulatory Compliance

The disclosure was made in accordance with SEBI Circular reference No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, which mandates listed entities to disclose defaults on loan payments. The filing was signed by D Malla Reddy, Company Secretary & Compliance Officer, and K. Venkateswarlu, Director cum CFO.

Debt Securities Status

The company reported no outstanding amounts or defaults in unlisted debt securities, including Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), indicating that the financial stress is primarily related to bank borrowings.

Market Implications

This latest default disclosure continues to highlight the financial challenges faced by Madhucon Projects Limited in the infrastructure development sector. The persistent inability to service debt obligations may impact investor confidence and the company's ability to secure future financing for its operations and projects.

Madhucon Projects Limited, a prominent infrastructure company, has reported a turnaround in its financial performance for the quarter ended June 30, while also making significant changes to its board composition and addressing various ongoing challenges.

Financial Performance

The company reported a standalone profit of ₹14.02 lakhs for the quarter, a notable improvement from the loss of ₹512.12 lakhs in the same quarter last year. This positive shift comes despite a decrease in revenue from operations, which fell to ₹13,517.60 lakhs from ₹20,975.03 lakhs year-over-year.

Board Changes and Appointments

In a series of strategic moves, Madhucon Projects has made several key appointments to its board:

• Mr. Sambasiva Rao Jasty has been appointed as an additional director.
• Mr. Turlapati Venkata Sundara Jawaharlal Nehru joins as a Non-Executive Independent Director for a five-year term.
• The board accepted the resignation of Mr. P. Madhava Rao.

Additionally, V. Madhumita & Associates has been appointed as the Secretarial Auditor for a five-year term.

Annual General Meeting and Book Closure

The company has scheduled its 35th Annual General Meeting for September 26. The book closure dates have been set from September 20 to 26.

Auditor's Concerns

The auditors have issued a qualified review report, highlighting several areas of concern:

1. Uncertainty regarding the valuation of investments in subsidiaries and other companies.
2. Partial write-offs of investments in Madhucon Infra Limited and Madurai Tuticorin Expressways Limited without proper justification.
3. Recognition of income against advances from a step-down subsidiary without clear basis.
4. Defaulted loan repayments to Punjab National Bank, classified as NPA.
5. Non-transfer of unpaid dividends to the Investor Education and Protection Fund.
6. Outstanding statutory dues, including dividend distribution tax and provident fund contributions.

Ongoing Legal and Regulatory Issues

The company and its subsidiaries are facing several legal and regulatory challenges:

• The Enforcement Directorate has provisionally attached properties worth ₹176.86 crore belonging to Madhucon Group companies.
• Corporate Insolvency Resolution Processes (CIRP) have been initiated against some subsidiaries, including Ranchi Expressways Ltd and Trichy-Thanjavur Expressways Limited.
• Ongoing investigations by the CBI and Enforcement Directorate against Ranchi Expressways Ltd.

Despite these challenges, Madhucon Projects Limited continues to operate and has shown improvement in its standalone financial results. However, the numerous qualifications in the auditor's report and ongoing legal issues underscore the complex situation the company faces.

Investors and stakeholders are advised to closely monitor the developments, particularly the outcomes of the various legal proceedings and the company's efforts to address the auditor's concerns.

Note: All financial figures are in Indian Rupees (INR).