Vishnu Prakash R Punglia Limited reported a net loss of ₹29.98 crore for the quarter ended December 31, 2025 (Q3FY26), marking a significant decline from the net profit of ₹3.65 crore recorded in the previous quarter. The company's financial performance was severely impacted by an exceptional item of ₹99.64 crore related to the termination of a major railway infrastructure project.

Financial Performance Overview

The company's quarterly results showed mixed performance across key metrics:

Revenue from operations declined significantly to ₹1,774.81 crore in Q3FY26 from ₹2,956.85 crore in the previous quarter, representing a 40.00% quarter-on-quarter decrease. Other income increased to ₹37.81 crore from ₹22.24 crore in Q2FY26.

Nine Months Performance

For the nine months ended December 31, 2025, the company's performance deteriorated compared to the corresponding period:

Contract Termination Impact

The company faced a significant setback when Chief Engineer (Construction) - III, North Western Railway rescinded the contract for the "Jaipur - Sawai Madhopur Doubling Project" through a termination notice dated January 13, 2026. Subsequently, the railway authority encashed the performance bank guarantee and forfeited the security deposit, resulting in an aggregate impact of ₹99.64 crore.

Vishnu Prakash R Punglia has filed Civil Writ Petition No. 983/2026 against Chief Engineer (Construction) - III North Western Railway before the Rajasthan High Court, Jodhpur. The matter is currently pending for hearing and adjudication. The company's management expects to succeed in the proceedings with high likelihood of contract restoration and reversal of adverse action based on strong legal and factual grounds.

Operational Expenses Analysis

The company's expense structure showed variations across categories:

Total expenses for Q3FY26 were ₹2,106.68 crore compared to ₹2,045.43 crore in the previous quarter.

Joint Operations and Business Segments

The company operates through 19 jointly controlled operations incorporated on a proportionate basis. However, one joint operation named VPRPL-KALPATARU JV has not been incorporated in the financial results due to disputes with the joint venture partner, resulting in no access to the operation's financials.

The company and its jointly controlled operations are exclusively engaged in construction and infrastructure development in India, which constitutes the single operating segment under Indian Accounting Standard 108.

Source:

Vishnu prakash r punglia Limited has released its unaudited financial results for the third quarter ended December 31, 2025, revealing a net loss of ₹299.81 million compared to a profit of ₹36.50 million in the previous quarter. The company's performance was significantly impacted by exceptional items totaling ₹99.64 million related to a contract dispute with North Western Railway.

Financial Performance Overview

The company's revenue from operations declined to ₹1,774.81 million in Q3FY26 from ₹2,956.85 million in Q2FY26. Total income, including other income of ₹37.81 million, stood at ₹1,812.62 million for the quarter.

Contract Dispute and Exceptional Items

The Chief Engineer (Construction) - III, North Western Railway rescinded the contract for the "Jaipur - Sawai Madhopur Doubling Project" through a termination notice dated January 13, 2026. Subsequently, the railway authority encashed the performance bank guarantee and forfeited the security deposit, resulting in an aggregate impact of ₹99.64 million.

The company has filed Civil Writ Petition No. S.B.C.W. 983/2026 against the Chief Engineer before the Rajasthan High Court, Jodhpur. Management expects to succeed in the proceedings with high likelihood of contract restoration based on strong legal and factual grounds. However, the company has provided an expected credit loss of ₹99.64 million, disclosed as an exceptional item in the current quarter results.

Nine-Month Performance

For the nine months ended December 31, 2025, the company reported a net loss of ₹193.26 million compared to a profit of ₹423.52 million in the corresponding previous period. Revenue from operations for the nine-month period stood at ₹7,495.71 million.

Auditor's Review and Joint Operations

Banshi Jain & Associates, the company's auditors, conducted a limited review of the unaudited financial results. The review included 19 jointly controlled operations incorporated on a proportionate basis, which contributed total revenues of ₹398.41 million for the quarter and ₹1,040.74 million for the nine-month period.

The auditors noted that one joint operation, VPRPL-KALPATARU JV, has not been incorporated in the financial results due to a dispute with the joint venture partner, resulting in no access to the operation's financials.

Regulatory Compliance

The financial results were prepared in accordance with Indian Accounting Standard 34 "Interim Financial Reporting" and comply with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee reviewed and recommended the results on February 14, 2026, which were subsequently approved by the Board of Directors.

Source: Exclusive