Madhucon Projects Limited has provided clarification to BSE Limited regarding the resignation of Independent Director Mr. P. Madhava Rao, following the exchange's inquiry. The company submitted its response on December 24, 2025, addressing questions about the resignation that was accepted on August 9, 2025.

BSE Clarification Request

The company received an official email from BSE on November 20, 2025, and subsequently on December 15, 2025, requesting clarification regarding the resignation of Independent Director Mr. P. Madhava Rao Potla (DIN: 00385838). The resignation letter was originally submitted and accepted during the board meeting held on August 9, 2025.

Company's Response

In its clarification to BSE, Madhucon Projects confirmed the following key points:

Key Clarifications

The company provided specific clarifications as requested by BSE:

Directorship Status

Mr. P. Madhava Rao Potla is not holding any other directorships in other listed entities, ensuring no conflict of interest or regulatory complications arising from his resignation.

Material Reasons

The company confirmed that there are no other material reasons for the resignation beyond those already provided under Regulation 30 of SEBI (LODR) Regulations, 2015. This confirmation addresses any concerns about undisclosed factors influencing the director's decision to step down.

Regulatory Compliance

The clarification was signed by D. Malla Reddy, Company Secretary and Compliance Officer, and submitted digitally on December 24, 2025. The response ensures full compliance with BSE's inquiry requirements and maintains transparency in corporate governance practices.

Previous Board Restructuring

This clarification comes as part of the broader board restructuring that took place in August 2025, which included the appointment of two new directors: Mr. Sambasiva Rao Jasty as an additional director and Mr. Turlapati Venkata Sundara Jawaharlal Nehru as an Independent Director for a five-year term.

The company's prompt response to BSE's inquiry demonstrates its commitment to regulatory compliance and transparent communication with stakeholders regarding governance matters.

Madhucon Projects Limited , a construction and infrastructure development company, has reported a standalone profit for the quarter ended September 30, despite ongoing challenges with its subsidiaries and auditor concerns. The company's financial results reveal a mixed picture of improved profitability alongside significant structural issues.

Financial Performance

Madhucon Projects reported a standalone profit of ₹469.40 lakh for Q2, a substantial improvement from the loss of ₹240.13 lakh in the same period last year. However, the company's revenue from operations declined to ₹10,765.01 lakh from ₹16,280.56 lakh year-on-year.

Auditor Concerns and Subsidiary Issues

The company's auditors have raised significant concerns about the carrying value of equity investments worth ₹53,408.43 lakh in subsidiaries. Some of these subsidiaries are facing eroded net worth and going concern issues. During the quarter, Madhucon Projects wrote off investments of ₹7,637.67 lakh in its subsidiary Madhucon Infra Limited and ₹738.01 lakh in step-down subsidiary Madurai Tuticorin Expressways Limited.

Several step-down subsidiaries, including Ranchi Expressways, Trichy-Thanjavur Expressways, and Barasat-Krishnagar Expressways, are undergoing Corporate Insolvency Resolution Process (CIRP).

Regulatory Actions

The Enforcement Directorate has provisionally attached properties worth ₹176.86 crore belonging to the Madhucon Group in connection with a case against Ranchi Expressway Limited under the Prevention of Money Laundering Act (PMLA), 2002.

Board Changes

The company's Board has accepted the resignation of Independent Director Mrs. Ch. Lakshmi Kumari, effective November 8.

Consolidated Performance

On a consolidated basis, Madhucon Projects reported a loss of ₹13,067.23 lakh for Q2, compared to a loss of ₹515.55 lakh in the same quarter last year. The consolidated revenue from operations decreased to ₹12,939.79 lakh from ₹18,994.61 lakh year-on-year.

Conclusion

While Madhucon Projects has shown improvement in its standalone profitability, the company faces significant challenges with its subsidiaries and ongoing regulatory scrutiny. The substantial write-offs and insolvency proceedings of step-down subsidiaries indicate deep-rooted issues within the group. Investors and stakeholders should closely monitor the company's efforts to address these concerns and its ability to maintain profitability in the face of declining revenues.