ARCL Organics Ltd announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing a challenging quarter with significant losses despite maintaining nine-month profitability. The Board of Directors approved these results in their meeting held on February 11, 2026.

Q3FY26 Financial Performance

The company reported a substantial net loss during the quarter, marking a significant reversal from the previous year's performance.

The quarter's performance was significantly impacted by higher tax expenses of ₹614.26 lakhs compared to ₹54.89 lakhs in Q3FY25, along with exceptional items worth ₹54.80 lakhs.

Nine-Month Performance Analysis

Despite the challenging third quarter, the company maintained profitability for the nine-month period, though at reduced levels compared to the previous year.

Exceptional Items and Special Settlements

The company's results were influenced by several significant one-time items and regulatory settlements:

• Municipal Tax Settlement: Cleared property tax dues of ₹4.23 crore as adjudicated by Maheshtala Municipality, recognized under other expenses
• Income Tax Arrears: Settled ₹5.29 crore under the vivad se viswas 2.0 scheme for the block period 1988-1998, disclosed under tax for earlier years
• Legal Deposit: Deposited ₹7.00 crore with Calcutta High Court regarding litigation with Tara Properties Pvt. Ltd.
• Labour Code Impact: New Labour Codes effective November 21, 2025, resulted in increased gratuity liability of ₹33.49 lakhs and leave encashment of ₹21.31 lakhs

Consolidated Results and Subsidiary Structure

On a consolidated basis, the company reported a net loss of ₹880.98 lakhs for Q3FY26 compared to a profit of ₹179.27 lakhs in Q3FY25. The consolidated entity includes seven subsidiaries:

• Allied Maritime & Infra Engineering Private Ltd
• ARCL Petrochemicals Limited
• Ocilim Advisory Services Private Ltd
• Wide Range Merchants Private Ltd
• Nocnex Chemicals Private Ltd
• Yocnex Chemicals Private Ltd
• Suksess Chemicals Private Ltd

Corporate Actions and Compliance

To comply with Minimum Public Shareholding requirements, promoters transferred 10,00,000 shares to SBICAP Trustee Ltd for secondary market sale. As of December 31, 2025, 2,03,407 shares had been sold. The company maintains a paid-up equity share capital of ₹800.00 lakhs with shares of face value ₹10 each.

National Asset Reconstruction Co (NARCL) has submitted a ₹345 crore offer to acquire the debt of Kurukshetra Expressway, a stressed road asset with outstanding debt of approximately ₹1,500 crore. The bid represents part of ongoing efforts to resolve legacy stressed infrastructure assets under the government-backed bad loan resolution framework.

Bidding Structure and Process

NARCL has emerged as the first bidder in the process, with sources indicating that the company will serve as the anchor bidder if challenged. This positioning provides NARCL with the option to top its initial offer if competing bids emerge. Lenders are currently evaluating the proposal as part of the debt recovery proceedings.

Project Background and Termination

Kurukshetra Expressway (KEPL), a JMC's Road BOOT joint venture in Haryana, was established to develop, operate and maintain the four-laning of the Rohtak-Bawal stretch of NH-71 under the National Highways Development Programme (NHDP) Phase III. The project achieved commercial operations in September 2014.

The concession agreement was cancelled in July 2021 following prolonged disruptions and stoppage of toll collections. According to Care Ratings, the termination resulted from sustained force majeure events, specifically farmer agitations that caused persistent traffic disruptions and tolling challenges.

Recent Developments

In August, KEPL received two arbitration awards in its favour, which were subsequently challenged by the National Highways Authority of India (NHAI). Care Ratings noted that no major cash outflow is anticipated from the project due to the shortfall between debt due and termination payment.

NARCL's Resolution Framework

The bid structure follows NARCL's standard 85:15 framework, where 15% is paid in cash and the remaining 85% is paid through security receipts backed by government guarantee. The government guarantee covers the shortfall between amounts realised from underlying assets and the face value of security receipts issued, subject to an overall ceiling of ₹30,600 crore valid for five years.

NARCL is designed to resolve stressed loan assets above ₹500 crore each, targeting approximately ₹2 lakh crore in total stressed assets. The Kurukshetra Expressway acquisition represents part of this broader mandate to address legacy infrastructure debt issues in the Indian banking system.