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.

GCCL Infrastructure & Projects Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued operational challenges with widening quarterly losses. The company reported a net loss of ₹9.95 lacs for Q3 FY26, representing a significant increase from the ₹5.47 lacs loss recorded in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance for the quarter reflects minimal revenue generation and elevated expense levels. Total income for Q3 FY26 remained negligible at ₹0.14 lacs, consisting entirely of other income, with no revenue from operations reported.

Expense Analysis

The company's expense structure showed significant variations across different categories during Q3 FY26. Other expenses constituted the largest component at ₹4.91 lacs, followed by depreciation and amortisation expense at ₹3.61 lacs, and finance costs at ₹2.44 lacs. Employee benefits expense was recorded at ₹0.60 lacs for the quarter.

Nine-Month Performance

For the nine months ended December 31, 2025, GCCL Infrastructure reported improved performance compared to the previous year, with net loss reducing to ₹35.32 lacs from ₹90.79 lacs in the corresponding period of the previous year. Total expenses for the nine-month period stood at ₹35.68 lacs, while total income remained at ₹0.62 lacs.

Corporate Developments

The Board of Directors meeting held on February 10, 2026, addressed several key matters beyond the financial results approval. The board discussed the continuation of Mr. Dhirendra Ansukhlal Avashia as a Non-Executive Independent Director post attaining the age of 75 years, but concluded that more time and discussion are required for thorough evaluation. This matter will be tabled in the upcoming board meeting for further discussion.

Resolution Plan Status

The company continues to operate under the resolution plan approved by the National Company Law Tribunal, Ahmedabad on September 05, 2023. Under this plan, the company's share capital has been reduced from ₹600.55 lacs to ₹38.24 lacs, resulting in a reduction of ₹562.31 lacs which has been credited to Capital Reserve. The requisite intimations and filings regarding this capital reduction with the Stock Exchange are currently in process.

The company's paid-up equity share capital stands at ₹38.24 lacs with a par value of ₹10 each. The statutory auditors have expressed an unqualified opinion on the unaudited financial results, which were reviewed by the Audit Committee and approved by the Board of Directors.