Financial Results for the quarter and nine months ended on 31.12.2025

Valecha Engineering reported standalone revenue from operations of Rs 2.40 Cr for Q3 FY26 (down from Rs 4.69 Cr in Q3 FY25) but 9M FY26 revenue grew ~52% YoY to Rs 18.70 Cr (from Rs 12.33 Cr). Standalone profit before tax of Rs 0.25 Cr in Q3 and Rs 11.19 Cr for 9M (vs a loss of Rs 2.17 Cr last year) was largely aided by Rs 6.07 Cr interest received on an Income Tax Refund booked under Other Income. On a consolidated basis, however, the company posted heavy losses of Rs 48.52 Cr in Q3 and Rs 135.57 Cr for 9M (vs Rs 157.04 Cr loss), driven by massive finance costs of Rs 47.88 Cr (Q3) and Rs 141.35 Cr (9M). Subsidiary Valecha Kachchh Toll Roads remains in CIRP with NCLT approval of the Resolution Plan pending, while subsidiary Valecha Infrastructure has an eroded net worth and has defaulted on bank borrowings. The auditor flagged multiple Emphasis of Matter items including unrecovered investments/loans of ~Rs 287 Cr in subsidiaries, unassessed expected credit losses on trade receivables of Rs 138 Cr, and a possible Rs 20.46 Cr tax-related provision not made.