BF Utilities Limited reported a significantly widened net loss for the quarter ended December 31, 2025, as the company faced operational challenges and exceptional charges. The Pune-based infrastructure and renewable energy company announced its Q3FY26 results on February 13, 2026, showing deteriorated financial performance compared to the previous year.

Financial Performance Overview

The company's financial metrics for Q3FY26 reflected substantial challenges across key parameters:

Despite higher revenue from operations, the company reported a net loss of Rs 233.43 crores for Q3FY26 compared to Rs 61.83 crores loss in the corresponding quarter of the previous year, representing a 277.70% increase in losses.

Exceptional Items Impact

The quarterly results were significantly affected by exceptional items totaling Rs 218.12 crores. These charges primarily comprised incremental impact on gratuity of Rs 197.81 crores and long-term compensated absences of Rs 20.31 crores due to changes in wage definitions under the New Labour Codes that became effective from November 21, 2025.

Nine-Month Performance

For the nine months ended December 31, 2025, BF Utilities showed contrasting performance:

The nine-month period showed a net profit of Rs 587.46 crores, though this represented a 63.08% decline from Rs 1,591.25 crores in the previous year.

Segment-wise Performance

The company operates through two primary segments - Wind Mills and Infrastructure:

Wind Mills Segment

• Q3FY26 revenue: Rs 453.28 crores
• Segment profit before tax: Rs 43.16 crores
• Nine-month revenue: Rs 2,040.27 crores

Infrastructure Segment

• Q3FY26 revenue: Nil
• Segment loss before tax: Rs 80.50 crores
• Nine-month revenue: Rs 1,042.88 crores

Corporate Governance Updates

The Board of Directors approved the re-appointment of M/s. G.D. Apte & Co., Chartered Accountants, Pune as statutory auditors for a second term of five consecutive years from FY2026-27 to FY2030-31. The appointment will be effective from the conclusion of the 26th Annual General Meeting until the conclusion of the 31st AGM, subject to shareholder approval.

Ongoing Legal Matters

The company continues to face arbitration proceedings at the Singapore International Arbitration Centre (SIAC) involving claims of Rs 500 crores plus 18% IRR from AIRRO Mauritius Holdings V related to alleged breaches of shareholder agreements. The company, along with other promoters and sponsors, filed a statement of defense on December 24, 2025, maintaining that the claims lack merit.

BF Utilities' Q3FY26 results highlight the impact of regulatory changes and operational challenges on the company's financial performance, with exceptional charges significantly affecting the quarterly outcome.

BF Utilities has delivered strong financial performance in the first quarter of FY26, reporting a consolidated profit after tax of ₹9,658.96 crore, marking a significant 21.7% increase from ₹7,937.01 crore in the corresponding quarter of the previous year. The company's revenue from operations also showed healthy growth, rising 7.2% to ₹21,157.13 crore compared to ₹19,745.36 crore in Q1FY25.

Financial Performance Highlights

The company's consolidated financial results for the quarter ended June 30, 2025, demonstrate robust operational performance across key metrics. Total revenue, including other income, reached ₹21,780.33 crore, up from ₹20,280.53 crore in the same period last year.

Operational Efficiency and Cost Management

BF Utilities demonstrated improved operational efficiency with total expenses of ₹8,391.77 crore compared to ₹9,501.16 crore in Q1FY25, representing a 11.7% decrease. The company benefited from reduced finance costs, which declined to ₹2,170.22 crore from ₹3,160.01 crore in the previous year, and lower employee benefit expenses of ₹1,745.44 crore versus ₹2,047.31 crore.

Segment-wise Performance

The company operates primarily through two business segments - Infrastructure and Wind Mills. The Infrastructure segment contributed ₹21,097.22 crore to total revenue, while the Wind Mills segment generated ₹683.08 crore during Q1FY26.

Corporate Structure and Subsidiaries

BF Utilities operates through several subsidiaries that contribute to its consolidated performance. The company holds varying ownership stakes in key subsidiaries including Nandi Infrastructure Corridor Enterprise Ltd. (74.52%), Nandi Highway Developers Ltd. (69.53%), and BFUL Resources Pvt. Ltd. (100.00%).

Board Approval and Compliance

The Board of Directors approved these unaudited consolidated financial results in their meeting held on December 16, 2025. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the company's statutory auditors, G. D. Apte & Co., Chartered Accountants. The financial statements reflect the company's continued focus on operational excellence and strategic growth across its business segments.