Unitech Group , a real estate company currently under government-appointed management, has reported a significant increase in net loss for the quarter ended September 30, 2025. The company's financial performance continues to be impacted by legacy issues and ongoing legal proceedings.

Key Financial Highlights

• Net loss widened to Rs 805.67 crore in Q2 FY26, compared to Rs 468.59 crore in the same period last year.
• Revenue from operations increased to Rs 138.08 crore, up from Rs 19.08 crore year-on-year.
• Outstanding loans from banks and financial institutions amount to Rs 10,530.22 crore.
• Unpaid public deposits stand at Rs 529.13 crore.

Ongoing Challenges and Management Efforts

Unitech Limited continues to operate under a government-appointed board following Supreme Court directions from January 2020. The company faces significant hurdles, including:

1. Pending approval of the Resolution Framework by the Supreme Court.
2. Material uncertainty regarding its ability to continue as a going concern.
3. Multiple legacy issues inherited from the previous management.

The current management is working on addressing these challenges, including:

• Seeking concessions and reliefs from the Supreme Court to fulfill obligations towards project completion and other liabilities.
• Exploring options for completing ongoing projects and generating additional revenues.
• Engaging in dialogue with banks and financial institutions to explore the possibility of One Time Settlement (OTS) for outstanding dues.

Auditor's Observations

The company's auditors have issued a disclaimer of conclusion, citing several concerns:

• Insufficient evidence for asset valuations
• Pending reconciliations across various financial items
• Lack of impairment assessment for investments in subsidiaries, joint ventures, and associates

Outlook

While Unitech Limited's increased revenue indicates some operational improvement, the company's financial health remains precarious. The resolution of ongoing legal matters and the Supreme Court's decisions on the proposed Resolution Framework will be crucial in determining the company's future trajectory.

Investors and stakeholders should closely monitor developments in the Supreme Court proceedings and the company's efforts to address its financial and operational challenges.

In a significant development for Unitech Group , the Securities and Exchange Board of India (SEBI), National Stock Exchange (NSE), and Bombay Stock Exchange (BSE) have agreed to waive fines and penalties imposed on the company for non-compliances during its previous management's tenure. This decision marks a turning point for the real estate firm, which has been under government-appointed management since 2020.

Trading Category Upgrades

The BSE has announced that it will move Unitech Group's securities from the blacklisted Z category to the actively traded B category, effective October 7. Concurrently, the NSE will transfer the company from the restricted BZ series to the default EQ series. These changes signify a substantial improvement in the company's trading status and accessibility to investors.

Waiver of Penalties

The financial relief for Unitech Group is substantial, with the BSE waiving fines amounting to Rs 3.30 crore and the NSE waiving Rs 3.50 crore. These penalties were originally imposed due to various non-compliances under the company's previous management.

New Management's Efforts

The government-appointed board of Unitech Group, led by chairman Yudhvir Singh Malik, has been advocating for these changes since taking control of the company. Their efforts have finally come to fruition with this decision by the regulatory bodies and stock exchanges.

Background of Government Intervention

The Supreme Court approved the appointment of seven directors to Unitech Group's board in January 2020, following the government's takeover of the company. This intervention came in the wake of serious allegations against the previous management.

Forensic Audit Revelations

A forensic audit conducted on Unitech Group's operations revealed a disturbing pattern of fund misappropriation. The audit found that the company's promoters had siphoned off funds from 74 different projects, leading to significant delays and affecting numerous homebuyers.

Progress Under New Management

Since the change in management, Unitech Group has been working to address the issues left by its predecessors. The new board has reported that work has resumed on most of the stalled projects, bringing hope to affected homebuyers and investors.

This recent decision by SEBI and the stock exchanges to waive penalties and ease trading restrictions is expected to provide Unitech Group with much-needed relief as it continues its efforts to turn the company around and fulfill its obligations to stakeholders.