Mcleod Russel India Limited has informed the Exchange regarding 'Outcome of Board Meeting'.
MCLEODRUSS · price
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Awaiting price reaction for this filing.
Mcleod Russel India reported a standalone loss of Rs. 4,013 lakhs for Q1 FY26 (quarter ended June 30, 2025), wider than the Rs. 3,643 lakhs loss a year ago, on revenue of Rs. 16,803 lakhs (up modestly from Rs. 15,080 lakhs). The statutory auditor Lodha & Co LLP issued an adverse conclusion on both standalone and consolidated results, flagging that Inter-Corporate Deposits of Rs. 2,86,050 lakhs given to promoter group entities are doubtful of recovery, with only Rs. 1,01,039 lakhs provisioned so far. The auditor also highlighted a material uncertainty on the company's ability to continue as a going concern, citing current liabilities exceeding current assets, operational losses, and negative other equity of Rs. 34,174 lakhs. A debt resolution plan worth Rs. 1,46,107 lakhs (largely assigned to NARCL) is pending, statutory dues of Rs. 18,838 lakhs remain unpaid, and interest of Rs. 13,373 lakhs on borrowings has not been recognized. Separately, the Board approved voluntary delisting from the Calcutta Stock Exchange (shares will remain on BSE and NSE), re-appointment of an Independent Director, and a new Secretarial Auditor.
This is a deeply negative filing for shareholders. The adverse auditor opinion, explicit going-concern uncertainty, and unresolved promoter-related ICDs of nearly Rs. 2,900 crores signal severe financial distress and a high risk of further value erosion. Investors should expect continued stock price pressure and closely track the outcome of the NARCL debt resolution plan, which is critical to the company's survival.