Financial Results for the quarter ended 30th June, 2025
Awaiting price reaction for this filing.
McNally Bharat reported a standalone net loss of Rs 23,026 lakh for Q1 FY26, slightly wider than the Rs 22,031 lakh loss in the same quarter last year. Revenue from operations collapsed to Rs 1,492 lakh from Rs 2,619 lakh a year ago, a 43% YoY decline. The result is dominated by finance costs of Rs 21,286 lakh (largely accumulated interest on admitted IBC claims), against negligible operating activity. The statutory auditor (V. Singhi & Associates) issued an Adverse Conclusion on both standalone and consolidated results, citing non-adjustment of a loan to VSPL, unverified deferred tax assets of Rs 51,707 lakh, and inability to confirm realisability of various balances. The auditor also flagged a Material Uncertainty on Going Concern, since the company is mid-CIRP, its net worth is fully eroded (reserves of Rs (5,92,561) lakh), and the resolution plan approved in December 2023 has not been fully implemented — the SRA (BTL EPC) has only partly disbursed funds and is seeking NCLT extension till 30 September 2025. The 62nd AGM is scheduled for 25 September 2025, and 95% of existing equity was extinguished under the resolution plan.
Very negative for shareholders — the company is effectively in insolvency, burning cash, with fully eroded net worth, an adverse auditor opinion, and equity already 95% cancelled. The stock remains a high-risk bet tied entirely to the outcome of the IBC resolution plan; further delays or failure by the SRA to infuse funds could lead to liquidation. Minority shareholders have already seen near-total dilution, and near-term price action is likely to remain volatile and news-driven.