Madhucon Projects Limited , a company listed on Indian stock exchanges, has reported a significant loan default in its latest financial disclosure. The infrastructure development company revealed details of its financial struggles in a filing to the stock exchanges on October 1, 2025.

Loan Default Details

Madhucon Projects Limited disclosed a default on loan payments for the quarter ended September 30, 2025. The company reported:

This default represents a complete failure to repay the principal amount due on fund-based loans.

Financial Indebtedness

The company's financial situation appears to be under stress, as evidenced by the following:

• Total financial indebtedness: Rs 185.25 crore (This includes both short-term and long-term debt, as well as non-fund based obligations)

Nature of Default

The default involves secured loans from OBC/Punjab National Bank (PNB). It's worth noting that OBC (Oriental Bank of Commerce) has been merged with Punjab National Bank, which explains the dual naming in the disclosure.

Disclosure Compliance

Madhucon Projects Limited made this disclosure in compliance with SEBI regulations, specifically adhering to the SEBI Circular reference No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019. This circular mandates listed entities to disclose defaults on payment of interest or repayment of principal amount on loans from banks or financial institutions.

Company Overview

Madhucon Projects Limited, with its corporate office in Hyderabad, operates in the infrastructure development sector. The company's financial struggles, as evidenced by this substantial loan default, may raise concerns among investors and stakeholders about its operational performance and financial health.

The disclosure of this default highlights the challenges faced by the company in meeting its financial obligations. Investors and market watchers will likely keep a close eye on Madhucon Projects Limited's future financial disclosures and any potential restructuring or recovery plans the company might implement to address its current financial situation.

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).