Dharan Infra-EPC Limited (formerly known as KBC Global Limited) has released its unaudited standalone and consolidated financial results for the second quarter and half-year ended September 30, 2025. The company, currently operating under Corporate Insolvency Resolution Process (CIRP), reported deteriorating financial performance amid ongoing legal proceedings.

Financial Performance Overview

The company's standalone financial results for Q2FY26 revealed a substantial widening of losses compared to the previous year. The comprehensive financial performance is detailed below:

For the half-year period ended September 30, 2025, the company reported a net loss of ₹1,160.92 lacs compared to ₹1,648.59 lacs in the corresponding previous period, showing some improvement in the overall loss trajectory.

Expense Analysis

The company's expense structure showed mixed trends across different categories:

• Finance Costs: Increased significantly to ₹268.41 lacs in Q2FY26 from ₹190.94 lacs in Q2FY25
• Employee Benefits: Rose to ₹74.71 lacs from ₹63.79 lacs
• Other Expenses: Decreased to ₹493.01 lacs from ₹682.63 lacs
• Cost of Construction/Development: Showed a negative figure of ₹107.51 lacs compared to negative ₹217.76 lacs in the previous year

Corporate Insolvency Resolution Process

The company is currently under CIRP following developments with Tata Capital Housing Finance Private Limited:

The financial creditor has confirmed receipt of ₹10 crore towards full and final settlement of outstanding dues, as recorded in its Closure Report dated February 2, 2026. An application under Section 12A of the Insolvency and Bankruptcy Code seeking withdrawal of the petition is currently pending before the National Company Law Tribunal.

Regulatory Compliance Issues

The company faces several regulatory challenges, particularly related to Foreign Exchange Management Act (FEMA) compliance:

• FCCB Issues: The company issued 950 Foreign Currency Convertible Bonds worth USD 95 million in March 2023, but faced deviations in fund deployment
• FEMA Non-compliance: Improper end-use of funds and delays in filing required forms with RBI
• Compounding Application: Filed with RBI on May 8, 2023, resubmitted on July 6, 2023, but returned by RBI
• Statutory Dues: Outstanding dues for Income Tax, GST, and TDS remain unpaid for over one year

Segment Performance

The company operates in three business segments:

Balance Sheet Position

As of September 30, 2025, the company's financial position showed:

• Total Assets: ₹102,848.86 lacs (vs ₹103,193.49 lacs as of March 31, 2025)
• Total Equity: ₹84,610.25 lacs (vs ₹85,775.22 lacs as of March 31, 2025)
• Cash and Cash Equivalents: ₹391.57 lacs (vs ₹372.18 lacs as of March 31, 2025)

Auditor's Qualified Opinion

The statutory auditors, Sharp Aarth & Co LLP, have expressed a qualified opinion on the financial results, citing concerns about FEMA compliance, fund deployment deviations, and the company's ability to continue as a going concern. The auditors noted that most construction sites remain non-operational, raising concerns about the company's ability to generate sufficient cash flow to meet obligations.

The company's management believes that losses can be recovered and regulatory violations will be resolved in due course, though the timeline and financial implications remain uncertain.

Dharan Infra-EPC Limited has made significant progress in resolving its Corporate Insolvency Resolution Process (CIRP) after successfully settling outstanding dues with its financial creditor. The company, formerly known as KBC Global Limited and Karda Construction Limited, has cleared all payments and is now seeking formal withdrawal of the insolvency proceedings.

Settlement with Financial Creditor

The company entered into a one-time settlement agreement with Tata Capital Housing Finance Limited, the original financial creditor, during the claim verification period. The settlement was completed with full payment of outstanding dues on December 31, 2025.

NCLAT Directions and Legal Proceedings

The National Company Law Appellate Tribunal issued crucial directions on January 6, 2026, following the successful settlement. The tribunal was apprised of the facts and circumstances surrounding the case, including the complete payment to the financial creditor.

The NCLAT's order included specific directions for the Interim Resolution Professional (IRP):

• File an application under Section 12A of the Insolvency and Bankruptcy Code, 2016
• Approach the National Company Law Tribunal, Mumbai Bench
• Collate claims received during the CIRP period
• Suspend further actions in the CIRP proceedings

Current Status and Next Steps

Following the tribunal's directions, the Interim Resolution Professional has initiated the process of filing an application under Section 12A before the NCLT Mumbai Bench. This application seeks withdrawal of the original Section 7 application that initiated the insolvency proceedings.

Regulatory Compliance

The company has disclosed this development in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made on January 20, 2026, keeping stakeholders informed about the significant progress in resolving the insolvency proceedings.

The resolution professional has received Form FA from the financial creditor, confirming the settlement and payment completion. Meanwhile, several interveners have been granted liberty to file intervention applications within a week of the January 6, 2026 order, with some claims already accepted by the resolution professional.

Company Background

Dharan Infra-EPC Limited, previously operating under the names KBC Global Limited and Karda Construction Limited, is listed on both NSE (symbol: DHARAN) and BSE (script code: 541161). The company's registered office is located in Nashik, Maharashtra, with its corporate office also situated in the same city.