IVRCL Limited Reports Massive ₹90,260.62 Crore Loss in Q2 FY26 Amid Ongoing Liquidation Process

IVRCL Limited has disclosed severe financial distress in its unaudited results for the quarter ended September 30, 2025, reporting a net loss of ₹90,260.62 crores. The infrastructure company, currently operating under liquidation as a going concern, continues to face mounting challenges with its financial obligations and operational sustainability.

Financial Performance Overview

The company's financial performance for Q2 FY26 reflects the ongoing difficulties faced during the liquidation process. Key financial metrics demonstrate the severity of the situation:

The company's revenue from operations declined significantly to ₹152.87 crores in Q2 FY26 from ₹677.77 crores in the corresponding quarter of the previous year. For the six-month period, total comprehensive loss reached ₹1,75,458.90 crores, representing a substantial increase from ₹1,46,638.96 crores in the previous year.

Major Financial Challenges

IVRCL's financial position reflects severe distress with accumulated losses of ₹22,29,367.76 crores and complete erosion of net worth as of September 30, 2025. The company's financial obligations include:

Finance costs alone accounted for ₹89,518.15 crores during the quarter, significantly contributing to the overall losses. The company's total expenses for Q2 FY26 reached ₹90,583.42 crores, primarily driven by these substantial finance costs.

Liquidation Process Status

IVRCL has been operating under liquidation as a going concern since the National Company Law Tribunal (NCLT) order dated July 26, 2019. The liquidation period has been extended until December 16, 2025, following the NCLT order dated March 7, 2025.

The third e-auction process conducted on December 15, 2021, resulted in a successful bid of ₹1,200 crores from a consortium led by Ponguleti Prasad Reddy. However, the bidder has failed to complete the payment schedule, having paid only ₹100 crores against the required ₹200 crores for the first tranche. The liquidator cancelled the bid process on July 28, 2023, which the bidder has challenged through legal proceedings.

Auditor Disclaimer and Key Issues

The statutory auditors have issued a disclaimer opinion highlighting several critical concerns:

• Deferred Tax Assets: Recognition of ₹95,705.88 crores in deferred tax assets without convincing evidence of future taxable income
• Disputed Receivables: Trade receivables and deposits of ₹1,58,525.96 crores under various disputes and arbitration proceedings
• Investment Valuation: Investments of ₹1,83,040.68 crores in subsidiaries and joint ventures with significant accumulated losses
• Outstanding Advances: Loans and advances of ₹80,887.12 crores to subsidiary companies outstanding for extended periods

Operational and Compliance Challenges

The company faces additional operational difficulties, including suspended GST registrations in Rajasthan and Karnataka regions. GST demands from various authorities total ₹25,436 crores, with ₹16,873 crores related to the CIRP and liquidation period and ₹8,563 crores pertaining to pre-CIRP periods.

Physical verification of fixed assets worth ₹8,780.21 crores and inventory of ₹5,169.01 crores remains pending. The company also holds various statutory balances aggregating ₹18,980.09 crores with tax authorities, subject to reconciliation and admission.

Leadership Changes

The NCLT Hyderabad Bench approved the replacement of the existing liquidator on October 29, 2025. Purusottam Behera has been appointed as the new liquidator, replacing Sutanu Sinha, to oversee the ongoing liquidation process.

The financial results were authorized by the liquidator, as all powers of the Board of Directors and Key Managerial Personnel have been vested with the liquidator under the liquidation order. The company continues to operate as a going concern based on the NCLT directive, despite the significant financial challenges and uncertain recovery prospects.