BF Utilities Limited , a prominent player in the wind energy and infrastructure sectors, has announced its financial results for the quarter ended September 30, 2023, revealing a mixed performance with profit increase and ongoing arbitration concerns.

Financial Highlights

The company reported a net profit of ₹178.77 lakhs for Q2, marking a significant improvement from the previous year's quarter loss of ₹97.07 lakhs. This increase comes despite a decline in revenue.

Key financial metrics for Q2 include:

Despite the significant year-on-year decrease in revenue from operations, BF Utilities managed to turn a profit this quarter.

Half-Year Performance

For the half-year period, the company posted a profit of ₹820.89 lakhs, a substantial improvement compared to a loss of ₹1,653.08 lakhs in the corresponding period last year.

Segment Performance

BF Utilities operates in two primary segments: Wind Mills and Infrastructure. The company's financial report did not provide specific segment-wise performance details for this quarter.

Ongoing Arbitration Concerns

The company is facing a significant arbitration claim where claimants are seeking damages of ₹500.00 crores plus 18% IRR from the date of investment, along with additional claims of ₹70.90 crores related to share acquisitions. BF Utilities and other promoters have denied the alleged breaches and plan to contest the claims.

Auditor's Qualified Review

The auditors have issued a qualified review report, expressing concerns about potential material impacts from the arbitration proceedings and impairment issues related to subsidiary investments. This qualification highlights the uncertainties surrounding the ongoing legal challenges faced by the company.

Future Outlook

The management faces challenges in navigating the ongoing arbitration process while maintaining the company's operational performance. The outcome of the arbitration proceedings could have significant implications for BF Utilities' financial position and future strategies.

Investors and analysts will be closely monitoring BF Utilities' performance in the coming quarters, particularly in light of the legal challenges and the company's ability to sustain profitability amid declining revenues.

Note: The financial results are subject to limited review by the statutory auditors.

BF Utilities Limited has disclosed that it has received a Statement of Claim from AIRRO (Mauritius) Holdings V and others, initiating an arbitration process at the Singapore International Arbitration Centre (SIAC). This development marks a significant escalation in an ongoing dispute between the parties.

Details of the Claim

The claim, filed by AIRRO Holdings and other parties, seeks damages and additional reliefs under a Shareholders' Agreement dated December 24, 2010. BF Utilities, in its official statement, has expressed its intention to contest these claims vigorously and defend its position before the SIAC.

Background and Disclosure

This arbitration claim is not an isolated incident but rather a continuation of a previously disclosed litigation. BF Utilities had earlier informed its shareholders about the pendency of this litigation on August 13, 2025. The company's recent disclosure, made on September 30, 2025, serves as an update to this ongoing legal matter, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Response

Pragati S. Rai, Company Secretary of BF Utilities Limited, signed off on the regulatory filing, affirming the company's commitment to defend its stance. The company stated, "The Company will contest these claims and will defend its position before Singapore International Arbitration Centre (SIAC)."

Implications and Next Steps

While the specific details of the damages sought or the nature of other reliefs claimed by AIRRO Holdings have not been disclosed, the initiation of arbitration proceedings at an international forum like SIAC suggests the matter is of significant importance. Shareholders and market observers will likely be keeping a close eye on how this arbitration unfolds and its potential impact on BF Utilities' operations and financial position.

BF Utilities has assured that it will continue to provide updates on any further developments in this matter, maintaining transparency with its investors and complying with regulatory requirements.

Investors and stakeholders are advised to monitor official communications from the company for any future updates regarding this arbitration process.