Parsvnath developers reports significant Q2 losses amid litigation, liquidity concerns

Parsvnath Developers Limited reported a standalone net loss after tax of INR 5,859.34 lakhs for the quarter ended September 30, 2025, and INR 5,052.88 lakhs for the half-year. Consolidated figures show a net loss after tax of INR 15,382.70 lakhs for the quarter and INR 21,303.71 lakhs for the half-year, with total comprehensive loss reaching INR 21,286.97 lakhs for the half-year. The company's auditors, T R Chadha & Co LLP, issued a qualified conclusion, highlighting indeterminate effects of ongoing litigations and material uncertainties concerning going concern.

Key issues include disputes with DMRC over BOT projects, where significant intangible assets under development and unamortized upfront fees face recoverability uncertainty. Additionally, delays in payments, suspension of GST registration, and long-outstanding advances to vendors and trade receivables contribute to a tight liquidity situation. Despite these challenges, management expresses optimism for resolution through alternative financing and asset sales, citing recent improvements in the real estate sector.