Bharat Road Network Limited (BRNL), a key player in India's road infrastructure sector, has announced its unaudited financial results for the quarter and half-year ended September 30, revealing a complex financial landscape marked by both gains and ongoing challenges.

Financial Performance

For the quarter ended September 30, BRNL reported a consolidated net profit of Rs 12.16 crore, compared to a profit of Rs 13.35 crore in the previous quarter. The company's revenue from operations saw a significant increase, rising to Rs 171.04 crore from Rs 144.47 crore in the same quarter of the previous year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter stood at Rs 19.40 crore, showing a substantial improvement of 50.39% compared to the same period last year.

Auditor's Qualifications and Going Concern Issues

Despite the positive revenue growth, BRNL faces significant financial challenges. The company's auditors have issued qualified conclusions, citing non-recognition of interest on Rs 19,357.73 lakhs from July 01 onwards. This has resulted in an overstatement of profit before tax by Rs 1,080.57 lakhs for the quarter and Rs 2,118.34 lakhs for the half year.

The auditors have also highlighted a material uncertainty regarding the company's ability to continue as a going concern. This concern stems from defaults in debt repayment and significant losses incurred by the company.

Subsidiary and Associate Concerns

BRNL's subsidiary, Guruvayoor Infrastructure Private Limited (GIPL), has also failed to recognize interest on Rs 9,766.18 lakhs from October 01 onwards. Additionally, GIPL is facing ongoing legal challenges, including search proceedings under the Prevention of Money Laundering Act.

The company's associates, Kurukshetra Expressway Private Limited (KEPL) and Mahakaleshwar Tollways Private Limited (MTPL), are dealing with project terminations and have filed claims with respective authorities.

Management's Perspective

Despite these challenges, BRNL's management maintains a positive outlook. The company is currently in discussions for potential restructuring and resolution of its financial support. The accounts have been prepared on a Going Concern Basis, considering the company's positive net worth as of September 30 and expected realization from its financial assets.

Conclusion

While Bharat Road Network Limited has shown improvement in its operational revenue, the company continues to navigate through significant financial and legal challenges. Investors and stakeholders will be closely watching how the company addresses its debt issues and resolves the ongoing legal matters in the coming quarters.

As the infrastructure sector plays a crucial role in India's economic growth, the performance and stability of companies like BRNL remain important factors in the broader economic landscape.

In a significant development for Bharat Road Network Limited (BRNL), the Kerala High Court has revoked the suspension on toll collection at the Paliyekkara Toll plaza, operated by its subsidiary, Guruvayoor Infrastructure Private Limited. This decision marks the end of a temporary halt in user fee collection that began on August 6, 2025, following a public interest litigation.

Key Details of the Court Order

• Effective Date: October 17, 2025
• Toll Rates: Will revert to levels in place before the suspension
• Original Suspension: Lasted for approximately 10 weeks, exceeding the initial four-week period

Background of the Suspension

The suspension of toll collection was initially ordered by the Kerala High Court on August 6, 2025, in response to a writ petition filed as a public interest litigation. The court had initially directed a temporary suspension for four weeks, but the actual suspension period extended beyond this timeframe.

Company's Disclosure

Bharat Road Network Limited, in compliance with SEBI regulations, disclosed this development to the stock exchanges. The company's statement, signed by Company Secretary Ankita Rathi, highlighted the following points:

• The High Court order was received on October 17, 2025
• Toll collection resumed effective immediately from the same date
• Toll rates will be maintained at the levels existing on August 6, 2025

Implications for Investors

This development may have implications for Bharat Road Network Limited and its subsidiary:

1. Revenue Resumption: The lifting of the suspension allows the company to resume its revenue stream from this toll plaza.
2. Operational Continuity: It ensures the continued operation of the infrastructure project without further interruptions.
3. Legal Clarity: The court's decision provides legal clarity on the toll collection issue, potentially reducing future uncertainties.

Investors and stakeholders of Bharat Road Network Limited should monitor the company's future communications for any updates on the financial impact of this development.