BGR Energy Systems Limited has received a contract termination notice from Tamil Nadu Transmission Corporation Limited (TANTRANSCO) for a significant EPC project, as disclosed in a regulatory filing dated February 03, 2026. The termination was communicated through TANTRANSCO's letter dated January 30, 2026, marking the end of a power transmission infrastructure project.

Contract Details and Scope

The terminated contract involved comprehensive EPC services for power transmission infrastructure in Tamil Nadu. The project scope included multiple components across different locations.

Termination Grounds and Financial Implications

TANTRANSCO cited specific reasons for the contract termination, with potential financial consequences for BGR Energy Systems. The state transmission corporation has indicated its intention to recover various costs associated with the project delays.

The grounds for termination include:

• Alleged delays in project execution
• Non-completion of the project within stipulated timelines
• Failure to meet contractual obligations as per TANTRANSCO's assessment

TANTRANSCO has indicated potential recovery of several financial components in accordance with contract terms:

• Liquidated damages for project delays
• Cost of materials not consumed during project execution
• Recovery of differential cost for executing balance works through alternative agencies

Company Response and Legal Position

BGR Energy Systems has outlined its approach to addressing the termination notice. The company is taking a measured response while protecting its commercial interests.

The company has stated it will examine the termination order thoroughly and explore available legal options, including remedies under the contract and applicable law. BGR Energy Systems emphasized its commitment to taking appropriate steps to protect its interests in this matter.

Operational Impact Assessment

Despite the contract termination, BGR Energy Systems has indicated minimal disruption to its overall business operations. The company has stated there is no material impact on its operations or other activities, suggesting the termination is contained to this specific project without broader operational consequences.

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with regulatory requirements for material contract developments.

BGR Energy Systems Limited has submitted its mandatory financial indebtedness disclosure to stock exchanges, revealing the company's debt position as of December 31, 2025. The disclosure, made in compliance with SEBI regulations, provides a comprehensive overview of the company's borrowing structure and repayment status.

Financial Indebtedness Breakdown

The company's financial disclosure presents a detailed breakdown of its debt obligations across different categories. The information was submitted to both the National Stock Exchange of India Limited and BSE Limited on January 7, 2026, ensuring transparency for all stakeholders.

Debt Composition Analysis

The primary component of BGR Energy Systems' financial indebtedness consists of loans and revolving facilities from banks and financial institutions, totaling ₹3,534.93 crores as of December 31, 2025. This represents the bulk of the company's borrowing portfolio, indicating a traditional banking relationship-based financing approach.

The company reported zero outstanding amounts in unlisted debt securities, including Non-Convertible Debentures (NCDs) and Non-Convertible Redeemable Preference Shares (NCRPS). This suggests the company has not utilized capital market instruments for debt financing during this period.

Compliance and Regulatory Adherence

The disclosure was made pursuant to SEBI Circular SEBI/HO/CFD/CMD1/CIR/P/2019/140 dated November 21, 2019, and the SEBI Master Circular dated July 11, 2023. This regulatory framework mandates listed companies to provide periodic updates on their financial indebtedness to ensure market transparency.

Key compliance highlights include:

• Timely submission to both NSE and BSE
• Comprehensive categorization of debt instruments
• Clear reporting of default status across all categories
• Adherence to prescribed disclosure format

Default Status and Financial Health Indicators

A significant aspect of the disclosure is the company's clean repayment record, with no defaults reported across any category of financial indebtedness as of December 31, 2025. This indicates the company's ability to service its debt obligations despite carrying substantial borrowings of nearly ₹4,000 crores.

The absence of defaults on bank loans and revolving facilities worth ₹3,534.93 crores demonstrates the company's commitment to maintaining healthy banking relationships and meeting its financial obligations on schedule.