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.

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.

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.

Madhucon Projects Limited , a company listed on Indian stock exchanges, has reported a significant loan default in its latest financial disclosure. The infrastructure development company revealed details of its financial struggles in a filing to the stock exchanges on October 1, 2025.

Loan Default Details

Madhucon Projects Limited disclosed a default on loan payments for the quarter ended September 30, 2025. The company reported:

This default represents a complete failure to repay the principal amount due on fund-based loans.

Financial Indebtedness

The company's financial situation appears to be under stress, as evidenced by the following:

• Total financial indebtedness: Rs 185.25 crore (This includes both short-term and long-term debt, as well as non-fund based obligations)

Nature of Default

The default involves secured loans from OBC/Punjab National Bank (PNB). It's worth noting that OBC (Oriental Bank of Commerce) has been merged with Punjab National Bank, which explains the dual naming in the disclosure.

Disclosure Compliance

Madhucon Projects Limited made this disclosure in compliance with SEBI regulations, specifically adhering to the SEBI Circular reference No. SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019. This circular mandates listed entities to disclose defaults on payment of interest or repayment of principal amount on loans from banks or financial institutions.

Company Overview

Madhucon Projects Limited, with its corporate office in Hyderabad, operates in the infrastructure development sector. The company's financial struggles, as evidenced by this substantial loan default, may raise concerns among investors and stakeholders about its operational performance and financial health.

The disclosure of this default highlights the challenges faced by the company in meeting its financial obligations. Investors and market watchers will likely keep a close eye on Madhucon Projects Limited's future financial disclosures and any potential restructuring or recovery plans the company might implement to address its current financial situation.