Outcome of Board Meeting, Submission of Unaudited Financial Results of the Company for the quarter ended 31st December 2025.
Awaiting price reaction for this filing.
McNally Bharat Engineering reported Q3 FY26 standalone revenue of Rs. 2,491.61 lakhs, up about 35% sequentially from Rs. 1,844.62 lakhs in Q2 FY26, but the nine-month revenue at Rs. 5,828.52 lakhs is down roughly 22% from Rs. 7,465.04 lakhs in the same period last year. The company posted a standalone net loss of Rs. 6,122.15 lakhs for the quarter, continuing operational losses, though the nine-month net profit of Rs. 3,51,869.06 lakhs is entirely driven by a one-time exceptional gain of Rs. 3,91,813.42 lakhs from extinguishment of financial and operational creditors under its NCLT-approved Resolution Plan. The company emerged from CIRP after a Resolution Plan was approved in December 2023, with Mandal Vyapar Pvt Ltd (SPV of BTL EPC) now holding 90% of the reconstituted equity. The statutory auditor (V. Singhi & Associates) issued an unmodified limited review conclusion but flagged multiple Emphasis of Matters, including pending reconciliation of receivables/payables, potential EPFO demand of about Rs. 960 lakhs (currently stayed), and accounting under the resolution plan overriding Ind AS requirements.
For shareholders, the headline profit is misleading – the underlying business remains loss-making with shrinking top line and ongoing operational stress. The exceptional gain is a non-recurring accounting entry from debt extinguishment, not from operations. Investors should watch for resolution plan completion, normalization of working capital, and whether operations can turn sustainably profitable, as the auditor's emphasis of matter notes on unreconciled balances signal residual risks.