Sadbhav Infrastructure Project Limited has released its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing mixed performance indicators across different time periods.

Quarterly Financial Performance

The company's Q3 FY26 results demonstrate some improvement in quarterly losses compared to the previous year. The financial metrics reveal a complex operational landscape with varying performance across different periods.

Nine-Month Performance Analysis

The nine-month period presents a different picture, with significantly higher losses compared to the corresponding period in the previous year. This indicates challenges in the company's operational performance over the extended period.

Capital Structure Details

The company maintained its equity capital structure during the reporting period. The paid-up equity share capital stood at ₹352.25 crore, consisting of shares with a face value of ₹10 each. This stability in capital structure suggests no major equity dilution or capital restructuring activities during the period.

Regulatory Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) and comply with Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The results were reviewed by the Audit Committee and approved by the Board of Directors.

Consolidated vs Standalone Results

The company also reported consolidated financial results, showing total income from operations of ₹205.87 crore for Q3 FY26. The consolidated net loss for the quarter was ₹119.67 crore, matching the standalone figures, indicating minimal impact from subsidiary operations.

The detailed financial results are available on stock exchange websites and the company's official website, providing stakeholders with comprehensive information for investment decisions.

Sadbhav Infrastructure Project Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant losses primarily driven by exceptional items related to subsidiary impairments. The infrastructure company, engaged in development, construction, operation and maintenance of infrastructure projects, reported challenging financial performance amid ongoing arbitration proceedings and subsidiary restructuring activities.

Standalone Financial Performance

The company's standalone operations showed continued losses with total income remaining at ₹28.51 crore for Q3FY26, compared to ₹30.33 crore in Q3FY25. The marginal decline was primarily due to lower other income, as the company reported no revenue from operations during the quarter.

The company's expense structure remained elevated with finance costs of ₹202.58 crore in Q3FY26 compared to ₹158.74 crore in Q3FY25, reflecting increased borrowing costs. Employee benefit expenses decreased to ₹14.13 crore from ₹20.14 crore year-on-year.

Exceptional Items Drive Losses

The quarter's performance was significantly impacted by exceptional items totaling ₹1,000 crore, representing provision for impairment in carrying value of subordinate debt and other receivables from Sadbhav Rudrapur Highway Private Limited (SRHL). This provision was made following the company's entry into an Endorsement Agreement dated February 09, 2026 with NHAI for harmonious substitution of the concessionaire.

Consolidated Operations Show Mixed Results

On a consolidated basis, the company demonstrated operational resilience with revenue from operations increasing to ₹2,055.37 crore in Q3FY26 from ₹1,739.11 crore in Q3FY25, representing an 18.19% growth. However, exceptional items of ₹1,398.27 crore significantly impacted overall profitability.

Subsidiary Challenges and Arbitration Updates

The company continues to face challenges with its subsidiary operations, particularly with toll road projects. Rohtak Panipat Tollway Private Limited (RPTPL) received a favorable arbitral award on January 23, 2025, with a net awarded amount of ₹10,805.45 crore (principal ₹7,796.31 crore and interest ₹3,009.14 crore) after deducting NHAI dues.

Key developments include:

• Settlement of arbitration awards under Vivad se Vishwas II Scheme for approximately ₹650 crore
• Ongoing arbitration proceedings for Rohtak Hisar Tollway Private Limited with claims of ₹19,287.10 crore
• Transfer of debt portfolios to National Asset Reconstruction Company Limited (NARCL)

Going Concern and Liquidity Concerns

The company faces material uncertainty regarding its ability to continue as a going concern, with accumulated losses, reduced operational income, and debenture holders initiating legal action for payment. The actual redemption of Series B debentures is scheduled for July 2026.

Management remains optimistic about liquidity improvement through:

• Monetization of toll road assets
• Realization of arbitration claims
• Harmonious substitution of subsidiaries
• Cost control measures

The auditors have expressed qualified opinions on the financial results, particularly regarding the recoverable value of investments in subsidiaries RPTPL and RHTPL aggregating ₹8,043.45 crore as of December 31, 2025.