Peninsula Land Limited has completed the full redemption of its optionally convertible debentures (OCDs) worth ₹149.99 crore in Q3 FY26, following a redemption notice received from investors. The development was disclosed through a monitoring agency report submitted by CARE Ratings Limited for the quarter ended December 31, 2025.

OCD Redemption Details

The redemption was triggered by a notice dated November 17, 2025, from the investor pursuant to the expiry of the 18-month tenure of the OCDs. The company executed the redemption in two separate tranches as per the OCD Subscription Agreement dated June 24, 2024.

Monitoring Agency's Assessment

CARE Ratings Limited, serving as the monitoring agency, reported a deviation from the original objects of the issue. The agency noted that the issue proceeds were initially intended for "Capital Contribution towards Real Estate Platform" but were instead utilized for redemption purposes.

Key findings from the monitoring report include:

• Deviation Range: 75-100% of the total issue amount
• Original Purpose: Capital contribution towards real estate platform
• Actual Utilization: Complete redemption of OCDs
• Prior Deployment: ₹36.97 crore had been previously utilized towards the stated objects

Company's Response

Peninsula Land Limited has disagreed with the monitoring agency's characterization of deviation, presenting the following arguments:

• All utilization and redemption activities were conducted in full compliance with the terms of issue and OCD subscription agreement
• The return of unutilized proceeds to investors in accordance with agreed terms cannot be construed as deviation
• The company will pursue the original objects through alternative financing means over the next few years

Financial Context

The monitoring agency highlighted several factors affecting the company's financial position:

Management Outlook

The company's management expressed confidence about improving profitability in coming quarters, attributing current losses primarily to deferment of revenue recognition. The board stated that deferred revenue recognition is expected to positively impact earnings as it gets recognized in upcoming quarters, along with new project launches and business initiatives.

Regulatory Compliance

The monitoring report was prepared in accordance with Regulation 32(6) of SEBI LODR Regulations, 2015, and Regulation 162A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was certified by chartered accountants D. DADHEECH and Co. with UDIN: 26151363PMZLDT7541 dated January 16, 2026.

Peninsula Land has announced its Q3FY26 financial results, reporting a significantly widened net loss and substantial revenue decline amid ongoing legal challenges. The real estate company's Board of Directors approved the unaudited financial results for the quarter ended December 31, 2025, at their meeting held on February 5, 2026.

Financial Performance Overview

The company's Q3FY26 results demonstrate deteriorating financial performance across key metrics. Peninsula Land recorded a net loss of ₹1,112 lakhs during the quarter, representing a substantial increase from the ₹681 lakhs loss reported in Q3FY25. The company's revenue from operations declined sharply to ₹2,691 lakhs compared to ₹9,665 lakhs in the corresponding quarter of the previous year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Peninsula Land's financial challenges persisted with revenue from operations declining to ₹10,099 lakhs from ₹17,900 lakhs in the corresponding period of the previous year. The company reported a net loss of ₹3,510 lakhs for the nine-month period compared to a minimal loss of ₹3 lakhs in the previous year.

Ongoing Legal Challenges

The company continues to face significant challenges related to its joint venture entity, Hem Infrastructure and Development Private Limited (HIPDPL). The National Company Law Tribunal (NCLT) initiated Corporate Insolvency Resolution Process (CIRP) against HIPDPL on July 14, 2025. Peninsula Land's aggregate financial exposure in HIPDPL stands at ₹9,615 lakhs comprising investments and loans as of December 31, 2025. The company has filed an appeal with the Supreme Court on December 27, 2025, against the NCLAT order while pursuing negotiations for settlement.

Corporate Actions and Regulatory Compliance

During the period, Peninsula Land converted 77,27,000 fully paid-up Compulsorily Convertible Debentures into equivalent equity shares on April 16, 2025, at a conversion price of ₹44 per share. The company also redeemed ₹15,000 lakhs worth of Optionally Convertible Debentures following investor exercise of redemption options. Additionally, the company recognized an additional employee benefit expense of ₹166 lakhs due to the implementation of new Labour Codes notified by the Government of India.

Auditor's Qualified Opinion

The statutory auditors SRBC & CO LLP have issued a qualified review report, highlighting their inability to assess the recoverability of investments and loans in HIPDPL due to ongoing NCLT proceedings. The auditors noted that pending the outcome of legal proceedings, the extent of recoverability cannot be determined, and no adjustments have been made to the carrying amounts in the financial results.