Madhucon Projects Reports Q2 Profit Amid Auditor Concerns and Subsidiary Challenges

Madhucon Projects Limited , a construction and infrastructure development company, has reported a standalone profit for the quarter ended September 30, despite ongoing challenges with its subsidiaries and auditor concerns. The company's financial results reveal a mixed picture of improved profitability alongside significant structural issues.

Financial Performance

Madhucon Projects reported a standalone profit of ₹469.40 lakh for Q2, a substantial improvement from the loss of ₹240.13 lakh in the same period last year. However, the company's revenue from operations declined to ₹10,765.01 lakh from ₹16,280.56 lakh year-on-year.

Financial Metric	Q2 (₹ in lakh)	Q2 Previous Year (₹ in lakh)	Change
Profit/(Loss)	469.40	(240.13)	+295.5%
Revenue	10,765.01	16,280.56	-33.9%

Auditor Concerns and Subsidiary Issues

The company's auditors have raised significant concerns about the carrying value of equity investments worth ₹53,408.43 lakh in subsidiaries. Some of these subsidiaries are facing eroded net worth and going concern issues. During the quarter, Madhucon Projects wrote off investments of ₹7,637.67 lakh in its subsidiary Madhucon Infra Limited and ₹738.01 lakh in step-down subsidiary Madurai Tuticorin Expressways Limited.

Several step-down subsidiaries, including Ranchi Expressways, Trichy-Thanjavur Expressways, and Barasat-Krishnagar Expressways, are undergoing Corporate Insolvency Resolution Process (CIRP).

Regulatory Actions

The Enforcement Directorate has provisionally attached properties worth ₹176.86 crore belonging to the Madhucon Group in connection with a case against Ranchi Expressway Limited under the Prevention of Money Laundering Act (PMLA), 2002.

Board Changes

The company's Board has accepted the resignation of Independent Director Mrs. Ch. Lakshmi Kumari, effective November 8.

Consolidated Performance

On a consolidated basis, Madhucon Projects reported a loss of ₹13,067.23 lakh for Q2, compared to a loss of ₹515.55 lakh in the same quarter last year. The consolidated revenue from operations decreased to ₹12,939.79 lakh from ₹18,994.61 lakh year-on-year.

Consolidated Metric	Q2 (₹ in lakh)	Q2 Previous Year (₹ in lakh)	Change
Loss	(13,067.23)	(515.55)	-2435.5%
Revenue	12,939.79	18,994.61	-31.9%

Conclusion

While Madhucon Projects has shown improvement in its standalone profitability, the company faces significant challenges with its subsidiaries and ongoing regulatory scrutiny. The substantial write-offs and insolvency proceedings of step-down subsidiaries indicate deep-rooted issues within the group. Investors and stakeholders should closely monitor the company's efforts to address these concerns and its ability to maintain profitability in the face of declining revenues.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.28%	-1.80%	-1.96%	-17.81%	-41.00%	+0.84%

Madhucon Projects Limited , an infrastructure development company, has disclosed another significant loan default in its latest quarterly filing. The company reported details of its continued financial difficulties in a disclosure to stock exchanges on January 5, 2026, covering the quarter ended December 31, 2025.

Q3FY26 Default Details

Madhucon Projects Limited disclosed a default on loan payments for the quarter ended December 31, 2025. The company's default parameters show:

Parameter:	Amount (Rs Crore)
Principal Default:	31.44
Interest Default:	Nil
Other Defaults:	Nil
Date of Default:	December 31, 2025

The default involves secured loans from Punjab National Bank (formerly OBC/Punjab National Bank), representing a complete failure to repay the principal amount due on fund-based loans.

Current Financial Position

The company's financial standing reveals the extent of its debt burden:

Financial Metric:	Amount (Rs Crore)
Total Outstanding Fund-Based Loans:	31.44
Amount in Default:	31.44
Total Financial Indebtedness:	160.56
Outstanding Borrowings from Banks:	Nil

Notably, the company's total financial indebtedness has decreased from Rs 185.25 crore in the previous quarter to Rs 160.56 crore, indicating some debt reduction despite the ongoing default.

Regulatory Compliance

The disclosure was made in accordance with SEBI Circular reference No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, which mandates listed entities to disclose defaults on loan payments. The filing was signed by D Malla Reddy, Company Secretary & Compliance Officer, and K. Venkateswarlu, Director cum CFO.

Debt Securities Status

The company reported no outstanding amounts or defaults in unlisted debt securities, including Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS), indicating that the financial stress is primarily related to bank borrowings.

Market Implications

This latest default disclosure continues to highlight the financial challenges faced by Madhucon Projects Limited in the infrastructure development sector. The persistent inability to service debt obligations may impact investor confidence and the company's ability to secure future financing for its operations and projects.