Unitech Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing continued financial challenges as the real estate developer operates under Supreme Court-appointed management.

Financial Performance Overview

The unitech group reported deteriorating financial performance in Q3FY26, with losses significantly widening compared to the previous year.

For the nine-month period, the company's financial metrics showed:

Exceptional Items Impact

The company recorded exceptional items of Rs 317.95 crore in Q3FY26, which significantly contributed to the widened losses. These exceptional items relate to corrections of financial inconsistencies inherited from the erstwhile management, including:

• Rs 190.00 crore related to a project sold by the previous management that was erroneously recorded
• Rs 127.95 crore related to tax provisions on transactions from 2017 that were not corrected in subsequent years

Operational Challenges

Unitech continues to face substantial operational difficulties, with finance costs remaining elevated at Rs 369.97 crore in Q3FY26 compared to Rs 411.76 crore in Q3FY25. The company's total expenses for the quarter stood at Rs 470.16 crore, resulting in an operating loss of Rs 361.38 crore before exceptional items.

Supreme Court Proceedings and Resolution Framework

The company operates under a government-appointed Board of Directors following Supreme Court directions from January 20, 2020. Key developments include:

• The Resolution Framework submitted to the Supreme Court remains pending approval
• Recent Supreme Court orders dated January 16, 2025, and January 22, 2026, directed dialogue between the company and banks for potential one-time settlement
• NOIDA has approved revised layout plans for key projects in Sectors 96-97-98, 113, and 117 as per Supreme Court directions

Outstanding Liabilities

The company faces significant financial obligations:

Auditor Disclaimer

The statutory auditors have issued a disclaimer of conclusion on the financial results, citing multiple concerns including material uncertainty about the company's ability to continue as a going concern, pending impairment assessments, and various reconciliation issues inherited from the previous management.

The company's earnings per share stood at Rs (2.60) for Q3FY26 compared to Rs (1.60) in the corresponding quarter of the previous year, reflecting the deteriorated financial performance during the period under review.

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.