IL&FS Engineering reports significant losses amid resolution efforts

For the quarter ended September 30, 2025, IL&FS Engineering and Construction Company reported a standalone net loss after tax of INR 177 Lakhs, with total income at INR 6,435 Lakhs. The consolidated net loss after tax for the same period was INR 126 Lakhs, from a total consolidated income of INR 6,435 Lakhs. For the six months ended September 30, 2025, the standalone net loss after tax stood at INR 1,119 Lakhs, and the consolidated net loss after tax was INR 1,055 Lakhs.

The company's accumulated losses reached INR 3,61,156 Lakhs as of September 30, 2025, eroding its net worth. Current liabilities exceed current assets by INR 3,85,192 Lakhs. This indicates a material uncertainty regarding the company's ability to continue as a going concern, with its solvency dependent on the finalization and approval of a resolution process.

Notably, the company has not recognized interest expense totaling approximately INR 22,907 Lakhs for the six months ended September 30, 2025, and an aggregate of INR 2,84,896 Lakhs as of September 30, 2025, due to a NCLAT judgment freezing interest accrual after October 15, 2018. Additionally, the consolidated financial results exclude information from its subsidiary Maytas Infra Saudi Arabia, which ceased operations over three years ago.