Outcome of Board Meeting, Submission of Unaudited Financial Results of the Company for the quarter and half year ended September 30, 2025
Awaiting price reaction for this filing.
McNally Bharat reported unaudited results for Q2/H1 FY26 showing a massive reported standalone profit of Rs 3,81,017 lakhs, almost entirely driven by a one-time exceptional gain of Rs 3,91,813 lakhs from extinguishment of financial and operational creditors under the NCLT-approved Resolution Plan implemented earlier this year. Underlying operations remain weak: revenue from operations fell to Rs 1,835 lakhs in Q2 (down ~32% YoY from Rs 2,692 lakhs) and to Rs 3,314 lakhs in H1 (down ~38% YoY), with a pre-exceptional loss before tax of Rs 33,822 lakhs for the half year. The company emerged from CIRP in January 2025, with its share capital cut by 95%, a reconstituted board, and fresh equity issued to Mandal Vyapar Pvt Ltd (SPV of resolution applicant BTL EPC). Total equity swung from negative Rs 5,89,227 lakhs to positive Rs 69,922 lakhs, and borrowings dropped sharply. Auditor V. Singhi & Associates issued an unqualified limited review report with emphasis-of-matter notes on the Resolution Plan accounting treatment and pending reconciliations of receivables and payables.
The headline profit is a non-recurring accounting gain from debt write-offs, not sustainable earnings, so the stock price is unlikely to move meaningfully on this number. Investors should track underlying operating performance, which still shows revenue decline and pre-exceptional losses, along with progress on relisting and the new management's ability to revive the construction business.