Gayatri Projects Limited Reports Q1FY26 Revenue Decline of 36% to ₹7,658 Crores
Gayatri Projects Limited reported Q1FY26 revenue of ₹7,658.34 crores, down 36% YoY, with net loss of ₹282.67 crores. The company successfully exited CIRP after NCLT approved its debt settlement proposal, with management control returning to promoters in September 2025. Total expenses decreased 40% to ₹8,260.76 crores, though finance costs surged 194% reflecting debt restructuring challenges.
*this image is generated using AI for illustrative purposes only.
Gayatri Projects Limited announced its unaudited financial results for the quarter ended June 30, 2025, showing mixed performance amid ongoing business restructuring following its exit from Corporate Insolvency Resolution Process (CIRP).
Financial Performance Overview
The company's financial metrics for Q1FY26 reflected the challenging operating environment:
| Metric | Q1FY26 | Q1FY24 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹7,658.34 cr | ₹11,940.77 cr | -35.86% |
| Other Income | ₹319.75 cr | ₹110.45 cr | +189.45% |
| Total Income | ₹7,978.09 cr | ₹12,051.22 cr | -33.80% |
| Total Expenses | ₹8,260.76 cr | ₹13,691.42 cr | -39.66% |
| Net Loss | ₹282.67 cr | ₹1,640.20 cr | -82.76% |
Revenue from operations declined significantly by 35.86% to ₹7,658.34 crores compared to ₹11,940.77 crores in Q1FY24. However, other income increased substantially by 189.45% to ₹319.75 crores from ₹110.45 crores in the previous year.
Expense Management and Cost Structure
Total expenses decreased to ₹8,260.76 crores from ₹13,691.42 crores in Q1FY24, representing a 39.66% reduction. The major expense components showed varying trends:
| Expense Category | Q1FY26 | Q1FY24 | Change (%) |
|---|---|---|---|
| Cost of Materials & Work Expenditure | ₹5,209.30 cr | ₹11,056.10 cr | -52.89% |
| Employee Benefits | ₹606.12 cr | ₹806.07 cr | -24.80% |
| Finance Costs | ₹636.47 cr | ₹216.33 cr | +194.27% |
| Depreciation & Amortization | ₹919.55 cr | ₹1,119.46 cr | -17.85% |
Finance costs increased dramatically by 194.27% to ₹636.47 crores, reflecting the company's debt restructuring challenges during the CIRP period.
CIRP Exit and Debt Settlement
The company achieved a significant milestone by successfully exiting CIRP after the National Company Law Tribunal (NCLT) approved the One-Time Settlement (OTS) proposal on September 10, 2025. The settlement details included:
| Settlement Component | Amount |
|---|---|
| Fund-based Offer | ₹750.00 crores |
| Non-fund-based Recovery | ₹1,229.00 crores |
| Arbitration Claims Payment | ₹462.39 crores (75% of ₹612 crores) |
The OTS proposal was accepted by 97.20% of Committee of Creditors (COC) members. Management control returned to promoters on September 16, 2025, following the handover from the Resolution Professional.
Investment Portfolio and Recovery Efforts
The company maintains significant investments requiring careful monitoring. Key investments include ₹19,571.95 lakhs in Gayatri Hi-tech Hotels Limited through Compulsorily Convertible Cumulative Preferential Shares, convertible during FY2027-28. The company also holds investments totaling ₹43,843.41 lakhs in associate company Gayatri Highways Limited across various instruments.
Management is actively pursuing recovery of inter-corporate loans totaling ₹8,849.39 lakhs with accumulated interest of ₹25,555.00 lakhs. During FY2023-24 and FY2024-25, the company recovered ₹9,826.75 lakhs against these dues.
Operational Challenges and Outlook
The company's operations were significantly impacted by the CIRP process, leading to contract work assignments to sub-contractors and reduced billing capabilities. The COVID-19 pandemic's lingering effects, including delayed receivables recovery from government entities and increased material costs, continued to affect business operations.
With the successful CIRP exit and debt settlement completion, the company is positioned to focus on operational recovery and business restructuring under restored management control.
16
