IL&FS Engineering Reports Continued Losses Amid Ongoing Financial Distress
IL&FS Engineering & Construction Company reported a net loss of Rs 1,119.00 crore for the six months ended September 30, 2025, an improvement from Rs 1,377.00 crore loss in the same period last year. Revenue declined 36.8% to Rs 95.75 crore. For Q2 2025, the company saw a 17.9% revenue drop to Rs 64.30 crore, but net loss improved by 83.2% to Rs 1.80 crore. The company continues to face significant financial challenges, including eroded net worth and defaults on loan payments. A resolution process is underway, with potential sale of equity and approval of a bid by the Committee of Creditors pending.
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IL&FS Engg & Const Company , a company grappling with severe financial challenges, has reported a net loss of Rs 1,119.00 crore for the six months ended September 30, 2025. This figure, while substantial, shows a marginal improvement from the Rs 1,377.00 crore loss reported in the same period last year.
Financial Performance Overview
The company's financial results paint a picture of ongoing distress:
| Metric | H1 2025 | H1 2024 | Change |
|---|---|---|---|
| Net Loss | Rs 1,119.00 crore | Rs 1,377.00 crore | -18.7% |
| Revenue | Rs 95.75 crore | Rs 151.41 crore | -36.8% |
| EBITDA | Rs -11.19 crore | Rs -13.77 crore | 18.7% improvement |
Quarterly Performance
For the quarter ended September 30, 2025:
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Revenue | Rs 64.30 crore | Rs 78.30 crore | -17.9% |
| Net Loss | Rs 1.80 crore | Rs 10.70 crore | 83.2% improvement |
| EPS | Rs -0.13 | Rs -0.82 | 84.1% improvement |
Key Observations
Revenue Decline: The company's revenue has seen a significant year-on-year decrease, both on a half-yearly and quarterly basis.
Loss Reduction: Despite the revenue decline, IL&FS Engineering has managed to reduce its net losses compared to the previous year.
Operational Challenges: The operating profit margin (OPM) for Q2 2025 stood at -16.19%, indicating ongoing operational difficulties.
Debt Burden: The company continues to face a heavy debt burden, with interest expenses of Rs 0.90 crore in Q2 2025, up from Rs 0.60 crore in Q2 2024.
Going Concern Issues
IL&FS Engineering's ability to continue as a going concern remains in question due to several factors:
- Fully eroded net worth
- Current liabilities exceeding current assets by Rs 3,85,192.00 lakhs
- Ongoing resolution proceedings under the NCLAT framework
- Significant reduction in operating revenue over the past three years
- Continued defaults on loan payments to lenders, including promoter group entities
The company's management has prepared the financial results on a going concern basis, considering the status of the resolution process initiated by the Reconstituted Board of IL&FS.
Resolution Process
The Reconstituted Board of IL&FS is in the process of finalizing a comprehensive approach to manage the current situation, including:
- Potential sale of existing equity shareholding by the IL&FS Group
- Inviting expressions of interest for acquiring equity stake in the company
- Approval of a bid by the Committee of Creditors (CoC)
The successful bid is now awaiting approval from Justice D.K. Jain (Retd.) and subsequent submission to the National Company Law Tribunal (NCLT).
Conclusion
While IL&FS Engineering shows some signs of reducing its losses, the company's financial position remains precarious. The success of the ongoing resolution process will be crucial in determining the company's future viability and its ability to overcome its current financial distress.
Historical Stock Returns for IL&FS Engg & Const Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.00% | -7.73% | +3.64% | -27.59% | -33.29% | +659.72% |
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